Major consulting firm PwC released data this week showing that employers are rapidly reducing degree requirements for artificial intelligence-exposed jobs, with the steepest declines occurring in roles where AI either augments or automates human work.
The findings, published June 3 in PwC's 2025 Global AI Jobs Barometer, reveal that degree requirements for AI-augmented positions dropped from 66% to 59% between 2019 and 2024, while AI-automated roles saw an even sharper decline from 53% to 44%. The shift reflects a broader transformation in hiring practices as companies prioritize demonstrable skills over traditional credentials in an AI-driven economy.
The pace of change is accelerating. Skills sought by employers are evolving 66% faster in occupations most exposed to AI, up from 25% last year, according to PwC's analysis of nearly one billion job advertisements across six continents12.
"The challenge isn't that there won't be jobs," said Carol Stubbings, PwC's Global Chief Commercial Officer. "It's that workers need to be prepared to take them"3.
The trend coincides with mounting challenges for recent graduates. According to Oxford Economics, unemployment for college graduates aged 22-27 reached nearly 6% in April, compared to just above 4% for the overall workforce4. A separate survey found that 49% of US Generation Z job hunters believe AI has reduced the value of their college education5.
Despite concerns about job displacement, PwC's research shows AI is actually driving job growth across virtually every AI-exposed occupation. Industries most exposed to AI, including financial services and software publishing, experienced productivity growth jumping from 7% to 27% between 2018 and 202412.
The World Economic Forum's Future of Jobs Report 2025 projects that while 40% of employers expect workforce reductions where AI can automate tasks, the technology will create 11 million jobs while displacing 9 million others3.
Higher education institutions are scrambling to adapt. University of Michigan's Chief Information Officer Ravi Pendse said 2025 will be "the year when higher education finally accepts that AI is here to stay," advocating for mandatory AI exposure in every graduate's coursework1.
LinkedIn's Chief Economic Opportunity Officer warned of "the bottom rung of the career ladder breaking" as AI increasingly handles entry-level tasks like document review and basic customer service2.
The shift represents a fundamental recalibration of how employers value talent, with demonstrated competencies increasingly trumping formal credentials in an economy where technological skills can become obsolete within months.
