Shawn Chang is General Manager of ASUS North America, where he drives consumer and commercial business strategy in United States and Canada.gettySmall and medium-sized businesses are no strangers to the fact that they are under more pressure than ever before to attract the next generation of talent. In competition with larger enterprises with more resources, SMBs need to think about how to work more efficiently and attract the attention of the newest wave of career-ready workers: Gen Z.​Why Gen Z Has Expectations You Might Not Be Prepared ForSMBs must recognize that Gen Z is the first generation to be dubbed as digital natives, meaning they are the first people to grow up fully immersed in technology. They have been raised with constant access to phones, iPads and the internet, and through digital technology, they have learned to be incredibly creative, efficient and good problem solvers.For Gen Z, smart technology is not only a part of their personal life, but it has established itself as a regular integration into how they work and operate in work and school settings. They have grown accustomed to technology that is frictionless, intuitive, highly responsive and, most recently, AI-powered. The small businesses that want to attract Gen Z talent must recognize that Gen Z expects workflows that are customized, automated and seamlessly digital.​For example, research from the HR workplace solutions company Randstad shows that 75% of Gen Z workers use AI to learn new skills, not just as one-off inquiries or experiments, but as daily integrated parts of their lives, shaping how they work and interact with the world. Gen Z expects that their employers not only understand their digital workflows but also provide them with the technology to support them.As a result, SMBs with outdated hardware or software that does not support the newer generations' way of working could be unattractive to Gen Z. The organizations that use outdated hardware or methods of working are dissuading Gen Z talent from their business, without even knowing.The Bigger Case: Amplifying Productivity Versus Fulfilling TasksWhile meeting the technological expectations of Gen Z seems unnecessary in meeting the bottom line, there is a larger business case for the integration of digital and AI-ready tools. Gen Z sees AI as a way to not only fulfill their tasks but also to amplify their output.Everyday tasks, such as meeting documentation, organization and workflows, can be managed more efficiently with less time and effort using AI-enabled tech. This allows more time for better judgment and creativity, building on their foundational skills for better problem-solving and more productive capabilities. For small businesses, this is especially important as resources are fewer than in larger enterprises.According to Microsoft's 2024 AI and SMBs survey, 84% of small and medium-sized businesses agree that AI's impact on productivity is positive. In the report, participating SMBs shared an average productivity increase of 40%, pointing to how there has been a major shift in how operational efficiency has changed with the introduction of AI. Overall, this is a consequential impact on how SMBs can meaningfully affect the bottom line with the technology Gen Z has come to expect in business operations. ​It should be noted that despite their familiarity, Gen Z's sentiment toward AI is complicated. Research from Gallup's AI Paradox report found that 51% of Gen Zers use AI daily or weekly, yet 42% report it makes them anxious, and 42% believe it will harm their critical thinking skills. In the same report, Gallup found that 48% of pre-college Gen Zers believe AI skills will be necessary for their future careers.This dichotomy places SMBs in a conflicting situation as they aim to navigate how to balance AI enthusiasm and AI integration. Yet, ultimately, the data is showing that Gen Z is expecting to gravitate to employers who integrate AI thoughtfully into workflows, as this is the new expectation for the workplace. Making The TransitionThe transition to a digitally transformed and AI-enabled workplace might seem like a daunting task for any small business with limited time and resources. But this integration does not require a complete transformation; this can begin with quick wins and small changes.A good first step could be identifying where AI could make an immediate impact. See and assess your teams’ repetitive tasks, ineffectiveness and common delays. An easy win could be the integration of AI PCs, which come with enhanced AI capabilities built into the device itself.Furthermore, be sure that your devices can support a future-forward and digital environment. Integrating more powerful resource-heavy AI applications calls for more powerful devices that can keep up under the pressure. Matching the computing power that is needed to build on the skills and talents of Gen Z is one way to build a Gen Z-friendly workplace.The Competitive Advantage ​As the 2026 school year ends, and a new wave of graduates flood the workforce, the gap between Gen Z expectations and the realities of outdated workplaces will become apparent. Gen Z will be looking for job prospects that match the level of flexibility, purpose and technology that complements the way they grew up thinking, working and interacting with others. The small businesses that accommodate and recognize how Gen Z uses and responds to AI technology will be more attractive to this new wave of workers. Those SMBs that delay this transformation risk becoming obsolete and losing the opportunity to succeed in an increasingly AI-driven and digital landscape.Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?