Employers Say AI Will Make College Degrees More Important

Despite fears that AI will replace many entry-level white collar jobs, new data shows that many employers still want workers with a college degree. 

According to a survey of 2,500 employers that the Lumina Foundation and Gallup published Tuesday, 48 percent of employers believe artificial intelligence will make college degrees more important over the next five years, compared to just 26 percent who believe they will become less important. 

“There is a surprising disconnect between the public perception and employer behavior, and what AI might mean for the future value of a college degree,” Courtney Brown, Lumina’s vice president of impact and planning, told Inside Higher Ed. “Employers are hiring for the things that AI can’t do. They’re putting a premium on judgment, critical thinking, communication and adaptability. They value those skills you gain by getting degrees.”

According to the survey, 80 percent of employers said they would prefer a candidate who has a college degree, regardless of whether the job requires one.

The survey’s findings come during a period of diminished public confidence in higher education and recent headlines proclaiming a booming job market for job seekers without a college degree.

According to another Lumina-Gallup poll published earlier this year, just 38 percent of American adults said they have “a great deal” or “quite a lot” of confidence in higher ed—down from 42 percent last year. That lack of confidence often stems from a belief that employers don’t value degrees and that “there’s a disconnect between what’s happening in higher ed and what’s happening in the workforce,” Brown said. “So we decided to ask employers—the people that are doing the hiring—what they think about college.”

After administering the survey in August, they found that six out of 10 employers have strong confidence in higher education institutions.

While those levels varied across industries (information, education and health services sectors were highest, whereas business services, leisure and hospitality were lowest), a majority of employers in each sector said they were confident in higher education. The size of an organization also influenced employer views on higher education. According to the survey, 44 percent of employers with fewer than 10 employees expressed “a great deal” or “quite a lot” of confidence in higher education compared to 70 percent of employers at organizations with a range of 500 to 999 employees and 59 percent with 1,000-plus employees.

Although Brown isn’t sure why large employers have a stronger preference for candidates with college degrees, she speculated that it may be a useful barrier to entry for companies wading through large applicant pools to fill multiple positions.

Regardless, the results of the employer survey are a bit of good news for colleges and universities facing increased scrutiny about the value they provide.

“But I don’t think it gives colleges a free pass [or] any reason for complacency,” Brown said. “Universities and colleges are going to have to continue to deliver on that employer confidence by ensuring that graduates have these durable skills and that a degree actually represents real value and isn’t just a piece of paper.”