Gen Z is turning toward founding artificial intelligence companies

Gen Z entrepreneurship in the U.S. is rising, with the entrepreneurship rate among 18-34 year-olds climbing to 23% as more young people choose starting businesses over corporate employment. In 2025, 71% of Gen Z founders used artificial intelligence in building their companies, according to research cited in the article. Technology is lowering the cost and operational burden of launching new businesses, making self-employment more accessible to younger founders. The shift matters because it signals a changing labor market and a growing pipeline of AI-native startups. What to watch next is whether this generation's entrepreneurial momentum sustains as AI tools become more widespread and competitive.