AI's Impact on Formal Education: Are Degrees Becoming Outdated?

Published Date : 11/06/2025 

Employer demand for formal degrees is declining, especially in AI-exposed jobs, as rapid skills change makes degrees less relevant. 

Rapid skills change and knowledge turnover may mean formal degrees are more rapidly out of date, according to PwC's 2025 Global AI Jobs Barometer report. Nd3000 | Istock | Getty Images

Employer demand for formal degrees is declining for all jobs, but more quickly for jobs exposed to artificial intelligence, according to the 2025 AI Jobs Barometer report by professional services firm PwC, published last week. AI helps people rapidly build and command expert knowledge, which could make formal qualifications less relevant, the report noted. The technology is also creating rapid turnover in the skills and knowledge workers need to succeed, which may mean that formal degrees become 'out of date' more quickly.

In AI-exposed fields, what matters is increasingly what people can do today, not what they studied in the past, according to PwC’s 2025 AI Jobs Barometer. Notably, the skills that employers look for are changing 66% faster in occupations most exposed to AI, such as financial analyst, compared to those least exposed, such as physical therapist. This is up from the 25% recorded last year, according to PwC's data.

For workers, a greater emphasis on skills over degrees in hiring may help to democratize opportunity, opening doors for those who lack the time or resources to gain formal degrees, the report said. In AI-exposed fields, what matters is increasingly what people can do today, not what they studied in the past.

Today, education isn't limited to formal institutions or universities anymore, as you can learn using AI tools and large language models (LLMs), PwC Global Chief AI Officer Joe Atkinson told CNBC Make It. In order to adapt and futureproof your career in the rapidly changing work landscape, he suggested upskilling on AI at home. 

Frequently Asked Questions (FAQS): 

Q: What is the 2025 AI Jobs Barometer report by PwC?

A: The 2025 AI Jobs Barometer report by PwC is a comprehensive analysis of job ads and company financial reports across six continents, focusing on the impact of artificial intelligence on the job market and the demand for formal degrees.

Q: How is AI changing the job market?

A: AI is creating rapid turnover in the skills and knowledge workers need to succeed, making formal degrees less relevant and increasing the emphasis on practical, applied skills.

Q: What are the key findings of the report?

A: The key findings include a 66% faster change in the skills employers look for in AI-exposed jobs compared to non-AI jobs, and a decline in employer demand for formal degrees, especially in AI-exposed fields.

Q: What does PwC's Global Chief AI Officer suggest for workers?

A: PwC's Global Chief AI Officer, Joe Atkinson, suggests upskilling in AI, exploring different AI models, learning how to prompt large language models, and practicing using AI tools to stay relevant in the job market.

Q: What is the role of formal education in the future job market?

A: While formal education remains valuable for higher-order thinking and interaction skills, the emphasis is shifting towards practical, applied skills and continuous learning to keep up with rapid technological changes. 

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