The rise of artificial intelligence can make college degrees 'out of date': Upskill in AI or fall behind, says expert

A PwC report indicates that employer demand for formal degrees is declining, especially in AI-exposed roles like financial analysts, as the rapid evolution of AI emphasizes current skills over past education; skills are changing 66% faster in AI-exposed occupations, up from 25% last year. PwC's Global Chief AI Officer Joe Atkinson suggests upskilling on AI tools and LLMs to adapt to the changing work landscape, emphasizing that practical, applied AI skills are becoming essential for career advancement, though higher-order capabilities developed through formal education remain valuable.

Analysis

PwC's 2025 AI Jobs Barometer report reveals a significant shift in employer demand, with a declining emphasis on formal degrees across all job categories, a trend notably accelerated in roles highly exposed to artificial intelligence. The report, based on an analysis of nearly a billion job ads, indicates that the skills sought by employers are evolving 66% faster in AI-exposed occupations, such as financial analyst, compared to those least exposed—a sharp increase from the 25% rate recorded in the previous year. This rapid change underscores a growing preference for current, practical capabilities over historical academic achievements, as AI facilitates quicker acquisition of expert knowledge, potentially rendering formal qualifications outdated more rapidly. PwC’s Global Chief AI Officer, Joe Atkinson, highlights that this transition may democratize opportunities for individuals lacking formal degrees but proficient in applied AI skills, suggesting that continuous self-learning and practical application of AI tools are becoming fundamental for career relevance. While the report emphasizes the rising importance of demonstrable skills, it also acknowledges that formal education remains valuable for developing higher-order cognitive abilities like critical thinking and complex problem-solving, which are expected to gain further importance.

Key Decisions for Investors

• Investors should assess companies' agility in adapting talent acquisition and development strategies to prioritize rapidly evolving, AI-relevant practical skills over traditional formal qualifications, particularly within AI-exposed sectors like finance.
• Consider potential growth in the education technology and professional development industries focusing on continuous, applied upskilling in AI, as these are highlighted as critical for workforce adaptation.
• Evaluate how effectively companies are managing their human capital and addressing potential skill gaps given the accelerated rate of change in required competencies, as this will likely impact productivity, innovation, and long-term competitiveness in an AI-driven economy.