With AI replacing white-collar jobs in numerous fields and the cost of a degree continuing to rise, is it still worth getting a degree? We consider the merits of university education, highlight some important considerations for potential undergraduates and give some tips on education fee planning.
AI and the evolving job market
According to Accenture, we have reached a significant turning point and a milestone in artificial intelligence … (because) they’ve cracked the code on language complexity.
Since the launch of ChatGPT in November 2022, AI use has surged across many domains. Areas as diverse as healthcare, finance, education and entertainment have been transformed and many jobs from translators and financial analysts to personal assistants and radiologists are being replaced by machines.
According to Martin Ford, author of Rule of the Robots: How Artificial Intelligence Will Transform Everything ‘The white-collar employee’s future is more threatened than the Uber driver, because we still don’t have self-driving cars, but AI can certainly write reports. In many cases, more educated workers are going to be threatened more than the least educated workers. Think of the person that works cleaning hotel rooms – it’s really hard to automate that job.’
So should our young people abandon university and resign themselves to a menial job?
Definitely not! The good news is that AI is still not capable of many things including social and emotional intelligence, creativity and thinking outside the box, physical dexterity and mobility or complex and nuanced communication.
AI: which jobs are safe
I asked ChatGPT which jobs won’t be easily replaced by AI. It told me ‘While AI has replaced certain job functions, it has also created new opportunities and roles in AI development, implementation, maintenance, and oversight, as well as in fields requiring human creativity, empathy, and complex decision-making.’ For now, jobs requiring these skills are safe.
So while opportunities for modern language graduates to work as translators are fast disappearing (AI has translation pretty sorted), they can still leverage their linguistic skill and cultural expertise to adapt content to fit the cultural context of different regions and ensure machine translations are accurate and culturally relevant.
Similarly, in the field of medicine, while AI can replace a radiologist or pathologist, surgery requires precision, dexterity, and the ability to make quick, complex decisions and while robotic-assisted surgery is becoming more common, human surgeons are still essential for most procedures.
While a degree is not becoming obsolete just yet, it is important that university students consider carefully what they will study and where it will take them in order to ascertain whether it is worth the cost. It may not always be the best option.
Advice for students considering higher education (and their parents!)
Given the rapid advancements in AI and the high cost of a university degree, we offer this advice to those considering higher education as well as the parents helping them in the decision-making process and the financing!
By carefully considering these factors, young people can make informed decisions about their education and career paths, ensuring they are well-prepared for the future job market while also managing the financial implications of pursuing a degree.
Evaluate the Return on Investment (ROI)
Research potential salaries
Look into the average starting salaries for graduates in your chosen field and how they evolve over the length of a career. Compare these with the cost of obtaining the degree to assess whether the investment is financially worthwhile.
Consider alternative education paths
Evaluate alternatives like vocational training, apprenticeships, certifications, or online courses that might offer a more cost-effective route to a rewarding career.
Focus on future-proof skills
Emphasize human-centric skills
Develop skills that are less likely to be automated, such as emotional intelligence, creativity, critical thinking, and complex problem-solving. As the job market evolves, adaptability is going to be a highly valued skill.
Learn to work with AI
Gain proficiency in AI tools and technologies relevant to your field and work out how to leverage AI to enhance your employability and job performance.
Choose in-demand fields
STEM subjects
Fields such as data science, AI, cybersecurity, healthcare, and engineering are likely to remain in high demand.
Emerging Industries
Consider industries that are growing and evolving, such as renewable energy, biotechnology, and digital marketing.
Gain practical experience
Internships
Seek out internships, or part-time work in your field of interest to gain hands-on experience and build your network.
Student jobs
While working in a restaurant for a summer may not seem important for your CV, employers value experience and like to see that recent graduates have developed transferable skills, professionalism and a work ethic.
Network and build relationships
Professional connections
It’s never too soon to start developing a strong professional network through university events, industry conferences, and online platforms like LinkedIn.
Mentorship
Young people will find it beneficial to seek out mentors who can provide guidance, support, and insights into their chosen career path.
Plan ahead financially
Plan as far ahead as possible
Parents can spread the burden of university education by saving and investing in an education fund from early on.
Explore alternative funding options
Look into student loans, scholarships, grants, work-study programs, and other financial aid options to reduce the burden of tuition costs.
Budget wisely: Before starting, learn how to budget to avoid going into unnecessary debt and paying high interest rates on unauthorised overdrafts and credit cards.
Advice on education fee planning for expatriates in Asia
If you have children and university aspirations for them, be warned, a degree doesn’t come cheap.
That’s why, however old your child is, an education fee plan is an essential part of your overall financial planning. The earlier you put this in place, the more time you have to build up capital. You’ll also be able to take advantage of compound interest to boost your savings.
Infinity can provide professional advice on a regular saving plan dedicated to funding your child’s university education. We have helped hundreds of expatriate parents cover university fees and living costs, enabling their children to graduate debt-free.
In spite of the inexorable march of AI, a degree probably remains the best possible route to a lucrative career. To fund your child’s tertiary education, contact us for an appointment to discuss an education fee plan adapted to your needs and budget.
A leading provider of expat financial services and wealth management services across Asia.
