Michael E. Hansen is the CEO of Cengage Group, a global edtech company that enables student choice.
Seemingly overnight, the artificial intelligence (AI) race is on in corporate America, and leaders across industries are seizing every opportunity to integrate this transformative technology into their operations and offerings.
In fact, 92% of companies plan to increase their investments in the next three years due to the technology’s proven ability to optimize processes. And notably, three-quarters of senior leaders report positive returns as a result when it comes to operational efficiencies, employee productivity and customer satisfaction.
The World Economic Forum’s Future of Jobs Report highlights that AI will contribute a net growth of 78 million jobs globally—a 7% increase in employment. However, over 40% of the workforce will be disrupted and need to reskill to meet the AI talent demand.
This raises an important question: How should America’s workforce development system evolve to equip learners and workers for an AI-driven economy?
AI Talent Demands Sparked Educational Evolution
Proficiency in AI has quickly become an essential skill for workforce participation. With ChatGPT’s release to the public, demand for generative AI skills surged by 1,848% and currently, three in four workers are already using AI at work.
To bridge gaps in AI expertise, 77% of employers have adopted skills-based hiring to fill specific skills gaps last year. This shift marked a pivotal transformation in U.S. workforce development and catalyzed an educational evolution that underscores the necessity to look beyond traditional four-year degrees and embrace diverse educational pathways to close employability gaps.
Traditionally deemed essential to career success, four-year degrees are no longer viewed as the only path forward. In fact, rising tuition costs and emerging skills gaps have fueled interest in alternative educational pathways at a time when traditional degrees may not hold value throughout one’s entire career span. Despite post-secondary enrollment rebounding, there is notable growth in shorter-term learning opportunities; by fall 2024, certificate program enrollment increased by 28.5% compared to 2019, the fourth consecutive quarter of growth.
As AI reshapes learners’ educational priorities and employer skilling needs, postsecondary institutions must evolve accordingly. I’ve previously explored how AI influences higher education and the workforce; now let’s delve into post-secondary education’s pillars of success in this future of work:
Take A Thoughtful Approach: Evolving With The Workforce
AI has tested the U.S. post-secondary education system’s ability to swiftly and effectively adapt to a significant shift in workforce demands. As the demand for skilled AI professionals increases, educational institutions are under pressure to rapidly adapt and prepare students and workers for an AI-driven future. Many institutions are strategically tackling this issue head-on by thoughtfully evolving their curricula alongside the current pace of AI rather than simply “checking off” an AI literacy requirement.
To adequately meet the demand for AI talent, I believe post-secondary leaders must think beyond theoretical instruction. Instead, institutions should integrate practical AI literacy into career-specific programs and lean on strategic partnerships with industry employers.
For instance, in business courses, students can learn how AI tools can be leveraged to optimize operations, enhance decision-making processes and drive innovation. Moving beyond the basics of AI and incorporating industry-specific use cases or connecting students to internships that showcase real-world applications of AI, students gain a practical understanding of how these technologies can be applied in their respective fields.
Truly integrating AI understanding across various fields of study through hands-on examples will enable post-secondary educational institutions to better equip graduates to thrive in an increasingly digital workforce. This approach not only boosts student engagement but also deepens their understanding of how technology will shape their respective industries in the years ahead.
Don’t Lose Sight Of Post-Secondary’s Goal
As perceptions of post-secondary education evolve and the cost of living continues to rise, learners are increasingly scrutinizing the return on investment of their educational pathways. This scrutiny is compounded by data indicating that higher levels of traditional education can sometimes correlate with longer periods of unemployment after graduation.
Ultimately, employment is the primary goal of post-secondary education. Consequently, there is a growing demand for transparency and accountability from educational institutions regarding program outcomes. Students are gravitating toward institutions that provide clear reporting on program effectiveness, seeking assurance that their chosen pathway will lead to viable employment opportunities.
When post-secondary institutions focus on equipping learners with employable skills, they can help ensure that curricula and other educational programs adapt responsively to both workforce demands and student needs. This alignment not only enhances the value proposition for students but also strengthens the institution’s reputation as a leader in career-focused education amid a changing workforce.
AI Is Just The Beginning
Today, organizations evolve and innovate at an unfathomable pace, and AI is just one of many innovations set to disrupt the business world. To keep up with workforce needs, educational providers, employers and policymakers must collaborate rather than operate in isolation.
For example, by partnering with employers to develop curricula and design internship or apprenticeship programs, educational institutions can create pathways that lead directly to job opportunities. Initiatives such as Best Buy’s recent degree initiative or California’s collaboration with Nvidia exemplify how such partnerships can effectively bridge the gap between education and the workforce.
Embracing a comprehensive workforce development system not only enhances employability but also fosters a more dynamic and responsive economy capable of adapting to future challenges.
The urgent demand for AI talent has catalyzed a significant shift toward skills-based learning, marking a pivotal moment in education. As industries prioritize specific competencies over traditional credentials, post-secondary education must adapt to remain impactful.
By integrating practical experiences and fostering industry partnerships, leaders can help these institutions better prepare students for the evolving workforce and future challenges.
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