AI Accelerates Hiring Trend – College Degrees Matter Less

Artificial intelligence is driving a shift in what companies look for in new hires.

While experience has always been a key factor for job seekers, education level counts less and less compared to skill sets, allowing companies to “expand their talent pools and keep pace with roles that suit them.” evolve faster than traditional education ” says Lauren Winans, CEO of human resources consulting firm Next Level Benefits.

AI is accelerating the trend, as more and more organizations seek data science, machine learning, data analytics and related skills – skills that are learned primarily through practice and repetition, not by going to class.

Indeed, several companies, including Google and IBM, have dropped their degree requirements for certain positions in favor of recruitment by skills.

Additionally, a quarter of employers said they plan to stop requiring a bachelor’s degree this year but prioritize relevant experience, according to a 2025 resume. investigation of 1,000 hiring managers in the United States.

Skills-based recruiting benefits both businesses and job seekers

Skills-based recruiting is an “operational necessity” as organizations adopt AI initiatives and require their staff to design, build and manage AI systems and processes, says Anthony Donnarumma, CEO of recruitment agency 24 Seven.

Additionally, relying on skills rather than degrees reduces the time it takes to fill positions and improves productivity because candidates are “ready to work,” he says.

It also helps organizations stay agile and adapt to changing demandsadds Lisa Highfield, senior director of research and consulting at McLean & Company, a human resources research and consulting firm.

A skills-based approach also creates new opportunities for employees, says Highfield. This can increase workforce diversity and create avenues for career advancement, Winans adds.

“Workers are able to compete on the value of their skills, not the value of their skills. resume format or educational background — which can lead to better job matches, higher engagement, and long-term career growth,” says Donnarumma.

How AI Accelerates Skills-Based Hiring

At the other end, AI-powered screening and recruiting tools provide businesses with ways to automate skills-based recruitingsays Kara Ayers, senior vice president of global talent acquisition at Xplor Technologies, a payments and commerce software company that has already taken the plunge, prioritizing the skills, experience and potential of its new hires over college degrees – and using AI to do it.

Xplor Technologies began using AI-based applicant tracking system SmartRecruiters in 2022 to help them organize and categorize the skills needed for each role, Ayers says.

“These tools allow us to analyze CVs and profiles for skills rather than filtering by degree, and we use AI-powered predictive analytics to match candidates based on skills alignment and potential,” she explains.

Since adopting this approach, Ayers says the company has reduced its reliance on recruitment agencies, saving about $3 million. It also fills positions more quickly – often in less than 30 days, compared to more than 60 days in the past – and has improved the quality of new hires, who are now better matched to a position’s skills.

That said, using AI to assess candidates based on their skills depends on the need for organizations to have “a clear and well-structured framework, a consistent job architecture, reliable performance data and HR systems capable of integrating skills analysis into recruitment workflows” says Winans.

They also need data showing what skills they already have and what they’ll need for the future, Highfield says. And historical workforce data showing how people are succeeding within the company, Donnarumma adds.

There are, however, some challenges

Transitioning to skills-based recruiting can take a lot of time and resources, Highfield says. Leadership teams may also need to rethink their traditional recruiting practices and beliefs about the value of degrees, says Donnarumma.

AI gives companies tools to create a process that is “more accurate, more inclusive and much more aligned with the future of work,” says Donnarumma.

However, AI bias remains a “real concern,” he says. Organizations should build governance into AI recruiting, including ensuring that team members understand AI and can manage its use effectively and objectively.

Ayers believes it is crucial to highlight the benefits of AI while emphasizing governance.

“It’s important to think about how AI is used and carefully examine the tools in place,” she says. “Candidates and businesses need to maintain their authenticity and find the right balance in their reliance on AI.”