Only 35% of Americans now consider a four-year college education “very important” — a steep decline from the 70% who said so in 2010.
It’s understandable why. Families are concerned about rising costs. And much remains uncertain about how AI will reshape entry-level job opportunities. Given these pressures, many families increasingly wonder whether a bachelor’s degree — which historically enabled graduates to earn $2 million more over their lifetimes than workers with only high school diplomas — is still a good investment.
The answer depends entirely on the university.
The AI Threat to Entry-Level Jobs Is Real
More than eight in 10 employers say their workforce will need new skills to adapt to AI, according to a recent Microsoft survey.
AI tools now handle routine tasks that employers used to assign to junior staff — from software development to auditing and financial analysis. To remain relevant, graduates must move beyond technical execution and develop skills AI can’t replicate: judgment, cross-disciplinary synthesis, and the ability to manage the very tools that might otherwise replace them.
Colleges that help students master those capabilities — including by integrating AI education across all degrees and majors, not just STEM — are still exceptional investments that will pay dividends for decades. But the “passive degree,” earned without applying knowledge through internships, research, or hands-on problem-solving, will pay increasingly fewer dividends over time.
What the Right University Looks Like
Some universities are already embedding applied learning directly into degree programs, helping students leapfrog entry-level positions that AI can now perform.
At New York Institute of Technology, where I serve as president, students pair coursework with applied research, real-world problem-solving, and public-private partnerships.
In one recent project, medical and architecture students worked with an eyewear company to improve lens design for people with autism and Alzheimer’s. Guided by experts in AI, sustainable materials, and inclusive design, they tackled a challenge that combined engineering, biology, and empathy — precisely the kind of human-centered problem AI cannot solve on its own.
This hands-on model is especially critical for entrepreneurship. As AI lowers the barrier to launching a business, universities must treat founding and working at startups as a teachable skill. Through our Innovation and Entrepreneurship Academy, students can apply for university venture funds and gain access to mentorship, technical expertise, and the infrastructure needed to launch companies.
Other leading institutions are making similar bets. Northeastern University alternates academic semesters with paid cooperative education, ensuring students graduate with a résumé rather than solely a transcript. Purdue and Georgia Tech have built accelerated industry pathways that let students apply classroom learning to real corporate challenges.
Universities built for the next decade will operate more like nimble enterprises: making fast decisions, shifting course content, integrating AI across disciplines, redesigning degrees with diminishing value, and expanding industry partnerships to create job pathways for their graduates.
These schools aren’t just teaching theories or skill sets that might quickly prove outdated. They’re teaching something more durable: how to learn in real-world work environments. Graduates leave not just with a diploma, but with the practical agility to pivot as technology and labor markets shift beneath them.
So is a college degree still worth it? Yes — but only if the university is doing its job. In an AI age, the diploma matters less than what students actually did to earn it.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
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