Is your college degree becoming obsolete with AI's rise? Experts say there is a smarter way forward

Economic Times

11-06-2025

iStock As AI rapidly reshapes the job market, the importance of formal degrees is fading—especially in AI-exposed roles. According to PwC's 2025 AI Jobs Barometer, employers now prioritize current skills over past education. (Representational image: iStock)
A college degree, long considered the golden ticket to employment, is now losing its luster—especially in jobs most exposed to artificial intelligence. According to PwC's 2025 AI Jobs Barometer, employer demand for formal degrees is on the decline, and nowhere is that trend more pronounced than in AI-driven sectors. As AI systems rapidly empower individuals to master knowledge and execute tasks with lightning speed, the need to prove expertise through traditional education is diminishing.
The report, based on the analysis of nearly a billion job listings and thousands of company financial statements worldwide, paints a future where hiring managers care more about what you can do right now than what your diploma says you studied years ago.
In fields like finance, software, and data analysis—where AI tools are already ubiquitous—the skills employers seek are evolving 66% faster than in jobs less touched by AI, such as physical therapy. This dramatic shift, up from 25% last year, is not just a trend but a signal that traditional academic qualifications may struggle to keep pace with the breakneck evolution of knowledge.
'The emphasis on skills over degrees in hiring may help democratize opportunity,' the report notes, potentially leveling the playing field for those without the time or money to pursue multi-year university programs. It's not about what you learned then , but what you can do now .
Joe Atkinson, PwC's Global Chief AI Officer, believes the future belongs to those who take charge of their learning—especially when it comes to artificial intelligence. In a conversation with CNBC Make It , he emphasized that today's education is no longer confined to lecture halls and textbooks. Anyone with a laptop and internet connection can access AI models, understand prompt engineering, and train themselves in real time.
'The ability individuals have to tap vast amounts of knowledge is amplified in this age of AI,' Atkinson said. He encourages professionals to dive into different AI platforms, follow tech updates, and most importantly, use the tools regularly. Practical, applied skills are what separate the AI-literate from the left-behind. Self-learning, he warns, is now 'the new table stakes.' If you're not actively upskilling, you're already trailing behind. Despite this seismic shift, Atkinson isn't ringing the death knell for formal education just yet. He argues that universities still offer something vital: critical thinking, collaboration, and a foundation for higher-order reasoning. 'Formal education is not just about skills acquisition—it's about how you think and interact with the world,' he said. Those qualities, he believes, will only grow more valuable as machines take over more mechanical tasks.
Still, to remain competitive in this new world, even degree-holders will need to commit to lifelong learning. The rise of AI demands not just knowledge, but agility —a mindset of constant evolution.So, is your college degree obsolete? Not quite. But if you think it's enough to futureproof your career, think again. The rise of AI is pushing workers to become perpetual learners, fluent in the language of algorithms and tools. In this emerging era, the true measure of your value isn't your credentials—it's your capability. And in this brave new world, those who learn fastest will lead the future.