Competitiveness in the age of GEN AI and Generation Z

The industrial revolutions have continuously reshaped economies and labor markets. The First Industrial Revolution mechanized production with steam power, transforming agrarian economies into industrial centers. The Second introduced mass production, electricity, and largescale manufacturing, creating demand for specialized factory and administrative roles. The third one, also known as the Digital Revolution, brought computers, automation, and information technology, expanding knowledge work, service industries, and global supply chains. Today, the Fourth Industrial Revolution, driven by artificial intelligence (AI), robotics, and agentic technologies, not only automates tasks but also augments human decision-making, transforms workflows, and enables new business models. Unlike previous revolutions, AI reshapes both routine and cognitive tasks, emphasizing adaptability, creativity, and higher-order skills, thereby redefining employability and organizational functions. Three years after the introduction of generative AI tools, this study examines how companies and Generation Z in Serbia are adapting to these technological changes.