As a parent of young children, college soon appears on the horizon as a major investment. How do we calculate the ROI? After all, the cost of four years at a school like Stanford University is estimated to be over $350,000. Will a degree pay off? Given AI’s potential disruption of the job market, is higher education still a valuable asset?
Per the Federal Reserve Bank of New York, a college graduate today can expect a median 12.5% return on their investment, with high tuition costs offset by the supply of financial aid, scholarships, and grants.1 Of course, the market value of a credential varies with the major; historically, math, engineering, finance, and computer science have had a high ROI.
However, as AI advances, particularly generative AI, the nature of work will be transformed. “A McKinsey report projects that by 2030, 30% of current U.S. jobs could be automated with 60% significantly altered by AI tools. Goldman Sachs predicts that up to 50% of jobs will be fully automated by 2045, driven by generative AI and robotics.”2 Black Rock CEO, Larry Fink, notes that AI’s impact is already visible and predicts a “restructuring” of white-collar work by 2035.”3 Even graphic design and copywriting are vulnerable, with PEW Research Center reporting that, “30% of media jobs could be automated by 2035.”4
Nonetheless, higher education retains its worth by aiding the development of critical thinking, problem-solving, and collaboration—“meta skills” that transcend specific jobs, but are critical for every entrepreneur, business leader, or professional. As one example, in the field of medicine, AI and robotics have become adept at skills once considered uniquely human, yet insight, empathy, and emotional intelligence prove to be just as important as digital fluency to effective patient care.
While in college, students can find value not only in the sciences and tech-related subjects, but also in humanities courses that offer a nuanced understanding of the world’s complexities—vital for AI implementation that benefits human purpose and potential. Equally important, college offers a chance to hone the “mission critical” skills of relationship-building, communication and co-creating. In the words of SageX founder Heide Abelli, “Those who never learned how to play well with others in the kindergarten sandbox have some significant ground to make up, while those who excel in this arena will reap increasing benefits.”5