As artificial intelligence (AI) continues to revolutionise the workplace, a deep generational divide is emerging over the value of university degrees. For Generation Z – those born from the late 1990s onwards – the traditional path from classroom to career is being questioned like never before. With AI automating tasks once reserved for degree-holders, Gen Z is increasingly sceptical about whether higher education is still a wise investment.
Gen Z’s Growing Scepticism
According to recent surveys, more than half of Gen Z job seekers (51%) now believe their university degrees were a waste of money. Even more notably, 45% specifically cite AI as the reason their qualifications have become obsolete. This is a marked contrast to previous generations wherein only 20% of Baby Boomers and 41% of Millennials express similar doubts about the value of their degrees.
The reasons behind this shift are complex. For many young people, the fear is not just about robots or software taking over jobs, but about the rapid pace at which AI is transforming the skills needed in the workplace. Fields like programming, data analysis, and even content creation, once considered safe bets for graduates, are now being disrupted by AI tools that can perform these tasks faster and, in some cases, more accurately than humans.
Financial pressures add another layer to Gen Z’s concerns. The burden of student debt is heavier than ever, with 41% of graduates carrying loans questioning the value of their degree, compared to 31% of those without debt. First-generation university graduates, in particular, face steeper challenges: they tend to earn less and accumulate less wealth than their peers from families with a history of higher education.
AI-Enhanced Alternatives and the Evolving Job Market
In response to these challenges, many Gen Z job seekers are turning to alternatives that promise more practical, up-to-date skills. AI-powered skill development programmes are rapidly gaining popularity. These platforms use intelligent algorithms to create personalised learning experiences, adapting content to each learner’s strengths, weaknesses, and career goals.
Rather than relying solely on lectures and exams, these programmes offer hands-on training, real-world projects, and immediate feedback—qualities that appeal strongly to a generation raised on technology and instant information.
Employers are taking notice, too. Companies are increasingly valuing demonstrable skills and adaptability over traditional credentials. As AI continues to reshape job requirements, the ability to learn continuously and master new tools is becoming just as important—if not more so—than holding a degree.
Netflix co-CEO Ted Sarandos captured this shift when he said, “AI is not going to take your job. The individual who effectively utilises AI might take your job.” In other words, it’s not just about what you know, but how quickly you can learn and apply new knowledge.
Despite these trends, experts caution against writing off university education entirely. Data shows that, historically, graduates have fared better during economic downturns, experiencing lower unemployment rates and smaller income drops than those without degrees. Foundational skills—such as critical thinking, communication, and problem-solving—are still in high demand and are often honed through higher education.
Blending Education and Adaptability
The debate over the value of a university degree is far from settled. For Gen Z, the future likely lies in a blend of traditional education and ongoing, AI-enhanced skill development. Universities and policymakers face a pressing challenge: they must adapt curricula to keep pace with technological change, ensuring that students graduate with both foundational knowledge and the ability to thrive in a rapidly evolving job market.
At the same time, Gen Z must embrace lifelong learning, staying agile and open to new opportunities as the world of work continues to change. The rise of AI may have shaken confidence in the old ways, but it also offers new avenues for growth, creativity, and success—if young people, educators, and employers are willing to adapt.
