Traditional degrees may matter less in AI era, says Udacity founder

By Arjay L. Balinbin, Associate Editor

MADRID — Traditional university degrees may become less important as artificial intelligence (AI) reshapes how people learn and how employers evaluate talent, according to Udacity founder Sebastian Thrun.

At a media roundtable on Wednesday at South Summit Madrid 2026, co-organized by IE University, Mr. Thrun said the growing accessibility of online learning platforms and AI-powered tools is making skills and demonstrated capabilities more valuable than formal academic credentials alone.

“Formal education is secondary to what you actually know and can do,” he said.

Mr. Thrun founded online learning platform Udacity after teaching a pioneering massive open online course at Stanford University that attracted more than 160,000 students.

He said technology is increasingly democratizing access to knowledge, allowing individuals to acquire marketable skills outside traditional educational institutions.

Mr. Thrun, a former Google vice-president, also said that employers are becoming more interested in whether candidates can perform a job than in where they obtained their education.

“The degree is a false belief that it is a necessary step in society,” he said.

SHIFT IN LEARNING
Mr. Thrun’s comments come as AI tools rapidly change how people acquire knowledge and perform tasks across industries.

He identified Google and YouTube as among the world’s largest education platforms, saying individuals today have unprecedented access to information and training resources.

The emergence of generative AI has accelerated that trend by enabling learners to receive personalized explanations, tutoring, and feedback on demand.

As a result, workers can increasingly develop specialized skills without necessarily enrolling in traditional degree programs, Mr. Thrun said.

He added that technological barriers that once limited access to advanced education are steadily disappearing.

A motivated learner in a remote area can now acquire expertise in fields such as machine learning and software development and compete globally, he said.

Mr. Thrun previously founded Google’s X research lab and led the company’s self-driving car project, which later became Waymo.

LABOR
The shift toward skills-based hiring may become more pronounced as AI transforms workplace structures.

Mr. Thrun described a transition from the traditional “pyramid” model, in which senior professionals supervise large numbers of junior employees, to a “diamond” model, where experienced workers use AI tools to perform tasks that previously required teams of analysts or associates.

Under such a structure, employers may place greater emphasis on practical capabilities and adaptability than on formal qualifications, he said.

“Young people have a bit of a problem,” Mr. Thrun said, noting that AI is increasing the productivity of senior employees and potentially reducing demand for some entry-level functions.

To remain competitive, workers should actively experiment with AI tools and integrate them into their daily work, he said.

“You should be on top of AI,” he said. “Play with it on a daily basis.”

PHILIPPINE CONTEXT
Philippine organizations continue to grapple with a shortage of AI-related talent, according to Philippine AI Report 2025,

The report said 57% of organizations cited a lack of AI-skilled personnel as a major obstacle to broader adoption of the technology.

The report, which surveyed 175 organizations across multiple industries, also found that while 92% of Philippine organizations used AI in some form last year, most remain in the pilot stage of deployment.

The findings suggest that demand for AI-related skills is growing faster than the available talent pool.

It recommended that organizations invest heavily in workforce development and upskilling initiatives to address the gap.

FUTURE OF UNIVERSITIES
Despite his criticism of the traditional emphasis on degrees, Mr. Thrun did not predict the disappearance of universities.

Instead, he said institutions that fail to adapt to changing labor market demands could face increasing pressure as alternative forms of education gain credibility.

Universities that remain focused on credentials rather than practical skills may struggle to justify their value proposition, particularly as employers become more open to nontraditional learning pathways, he said.

The rise of AI could further accelerate that shift by making high-quality educational content widely accessible at little or no cost, he said.

For workers, the implication is that learning may become a continuous process rather than something confined to a four-year degree program.

“The more leveraged we are as people with tools, the more we will be asked to make impactful decisions,” Mr. Thrun said.

As AI automates routine tasks, workers will increasingly be judged by their ability to solve problems, exercise judgment, and apply knowledge effectively, regardless of where they acquired those skills, he added.