September 19, 2025
This Week in CX: AI Challenges, Gen Z Habits, BNPL Risks
Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.
This week, we explored why CX leaders still struggle to turn AI investments into results, why more than half of Gen Z check employer social media before applying, and the hidden risks of Buy Now, Pay Later debt.
We are also discussing updates from OpenAI, Koho, and more.
Key news
- OpenAI says changes coming to ChatGPT by the end of the month are aimed at keeping teens safe. It announced that it’s “building toward” an age prediction system, though it could seek an ID in certain cases. If doubt persists, the company said ChatGPT would default to under-18 settings until parents sign off. The changes come as OpenAI faces increased scrutiny over teen use — including a wrongful death lawsuit — and as a clear majority of teens now say they lean on AI for companionship.
- LinkedIn revealed its third annual list of Top MBA Programmes in the world this week, with European business schools featuring prominently in the global ranking. Among Europe’s leading programmes, INSEAD, London Business School, Saïd Business School and IESE Business School stood out at the top.
- Italy has become the EU’s first country to pass a law aligned with the bloc’s landmark AI Act, regulating the use of artificial intelligence. The legislation, which parliament approved late Wednesday, establishes cross-sector rules for AI in healthcare, work, education and beyond, requiring transparency and human oversight. It also restricts AI use for children under 14 without parental consent. The law sets out criminal penalties to target deepfakes, identity theft and fraud, and extends copyright protection to some AI-assisted works. Rome has also earmarked up to €1bn to invest in startups and larger companies working on AI.
CXM news stories
Here’s the full news stories that CXM have reported on in the past week. Learn all about the latest news around CX leaders’ love for AI, Gen Z’s habits when applying for a job, and the hidden challenges of BNPL.
Flat Incomes, Rising Costs: The Gen Z Money Struggle in Canada
Canada’s youngest workers are navigating one of the most financially uncertain times in recent memory. According to KOHO’s Canadian Gig and Seasonal Economy Trends Report, 29% of Gen Z Canadians (ages 18–25) say their financial situation is unstable, while another 41% describe it as only “somewhat stable.” With irregular pay, rising living costs, and seasonal or inconsistent employment, survival—not long-term growth—is the priority for this generation.
“We’re seeing many young Canadians are learning to live with uncertainty, balancing unpredictable pay and rising costs while trying to make rent and buy groceries,” said Daniel Eberhard, CEO and Founder of KOHO. “Our report shows that they often have to focus on survival before worrying about longer-term goals. At KOHO, we’re building tools that help Canadians feel more comfortable today while helping Gen Z move towards building the confidence to take control of their money.”
The report shows that the average monthly income for Gen Z workers has plateaued at $1,083. That figure fluctuated widely in the past year, with a peak of $1,200 in May and a low of $1,009 in February, a 17.6% swing.
Employment remains fragmented: 41% of Gen Z respondents work full-time, while nearly one in five (19%) are not employed at all. Looking ahead, nearly half (49%) expect to take on additional work over the next year as they search for stability.
Survival First, Growth Later
Savings among young Canadians are up 23% year-over-year, but what they actually have left to spend remains razor-thin—just $9 to $16 per month in available cash. Priorities are firmly rooted in immediate needs: covering basic living expenses (71%), building credit (55%), and paying off debt (54%). Longer-term goals like investing, education savings, and travel rank far lower.
To manage unpredictable incomes, Gen Z are cutting back. More than half (52%) are trimming discretionary spending, 40% are relying on KOHO tools like overdraft protection (KOHO Cover) or Pay Later, 28% borrow from family, and 14% are delaying bill payments. Usage of overdraft protection climbed to 40% this year, up 6.5 points, while adoption of credit-building products dropped by 8 points.
The data shows a generation adapting to constant financial turbulence. Paycheques swing up and down, savings are inching upward but hard to access, and stability often takes precedence over risk. For many young Canadians, resilience today means keeping essentials covered—even if it comes at the cost of longer-term financial progress.
