The College Value Proposition Is Changing in the Age of A.I.
Business Finance Media Technology Policy Wealth Insights Interviews
Art Art Fairs Art Market Art Reviews Auctions Galleries Museums Interviews
Lifestyle Nightlife & Dining Style Travel Interviews
Power Lists Nightlife & Dining Art A.I. PR
About About Observer Advertise With Us Reprints
The College Value Proposition Is Changing in the Age of A.I.
A.I. is making knowledge more accessible while exposing a shortage of the skills employers still struggle to find: judgment, communication, adaptability and problem-solving. The value of a college education will depend on whether schools teach students to use A.I. without outsourcing their judgment to it.
Here’s something every parent writing a tuition check this month should consider: in a survey of 1,000 U.S. hiring managers published July 2026, 48 percent said they’d rather invest in A.I. tools than hire—and train—a recent college graduate. More than half of the companies surveyed have already shifted part of their entry-level hiring budget to A.I. Nearly a quarter of them plan to hire fewer new graduates than last year, or none at all. Against this backdrop, it’s reasonable to question if a college education is still worth the investment. And, in turn, to ask: What, exactly, am I paying for?
Sign Up For Our Daily Newsletter
Thank you for signing up!
By clicking submit, you agree to our terms of service and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime.
But look closer at what those same hiring managers said, and the story changes. Their biggest complaints about new graduates weren’t about missing technical knowledge. Instead, 75 percent said recent grads need help reading a routine work document, like a memo or a budget. Forty-one percent say they can’t write a professional email, and only 17 percent of hiring managers fully trust a new grad to represent the company in front of a customer. These are gaps in judgment, professionalism and critical thinking–the very skills that make graduates worth hiring and a college degree still a valuable investment.
Knowledge was never the whole product
For most of my career in higher education, a big part........
