Digital Natives or Digitally Naïve? The Gen Z Confidence Gap in the Age of AI

They’ve grown up swiping before they could write. They’ve never known a world without smartphones, streaming, and search engines. But does that mean Gen Z is equipped for an AI-powered workplace?

Not quite.

While often hailed as “digital natives,” Gen Z's comfort with devices has led to a dangerous assumption — that they instinctively understand AI. But evidence increasingly suggests otherwise. Behind the tech-savvy surface is a growing confidence gap that organizations, educators, and Gen Z themselves must urgently address.

The Digital Native Fallacy

Just because someone grew up around technology doesn’t mean they know how it works — or how to use it responsibly.

This myth, sometimes called the “digital native fallacy,” implies that Gen Z has nothing to learn when it comes to digital and AI literacy. But recent studies show this assumption is wildly off base. In fact, digital skill gaps among Gen Z are just as wide as in older generations, especially when it comes to AI literacy.

A global survey by EY found that while Gen Z is enthusiastic about AI, nearly half scored poorly on tasks that required them to evaluate AI’s limitations — such as identifying fake content or understanding bias in algorithms.

Another study showed that while Gen Z students reported high AI self-confidence, over half actually exhibited low AI self-efficacy — the ability to apply it effectively in practice. In other words, confidence is not competence.

Superficial Skills, Serious Consequences

Gen Z’s use of AI often centers around basic tasks: summarizing articles, answering homework questions, or generating content quickly. But few understand the technical workings of AI, let alone how to assess its ethical implications.

Why the disconnect?

• AI was often a choice, not a requirement in school.

• 1 in 5 students feared they'd be penalized for using AI.

• Only 36% of UK undergrads received formal support for AI learning.

Worse still, only fewer than 10% of students can tell fact from opinion online — a foundational skill in the AI era. And as they grow more dependent on fast answers, their ability to problem-solve and think critically may be declining.

AI Fluency Requires More Than Use

There’s a major difference between using AI and being AI literate.

True AI literacy means:

• Understanding how AI works (not just what it does)

• Evaluating bias and limitations in outputs

• Writing effective prompts

• Applying ethical judgment

• Using human discernment to navigate AI-generated content

Yet many Gen Zers — and the systems that raised them — haven’t been equipped with these tools. As a result, their overconfidence can become a blind spot, leaving them vulnerable to misinformation, scams, and poor decision-making in the workplace.

What Needs to Change?

• Educators must stop assuming students are tech-fluent and start integrating AI literacy into curricula early and often.

• Employers must offer formal AI training, even to their youngest hires.

• Gen Z themselves must embrace humility, develop critical thinking, and approach AI not as a shortcut — but as a skill to master.

Gen Z has immense potential to lead in the AI era — but only if we stop mistaking familiarity for fluency. It’s time to drop the “digital native” label and replace it with something better: AI-literate innovators trained to think, question, and lead with confidence and integrity.

For more information See the AI report I generated https://www.drscottstrong.com/post/navigating-the-ai-landscape-generational-dynamics-in-data-literacy