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Artificial Intelligence (AI) has emerged as a significant force shaping both our personal and professional spheres. However, its influence on the job market has raised huge concerns. Over the past few months, we’ve witnessed a noticeable impact, particularly with the unsettling trend of layoffs at major tech giants like Google, Meta, and Amazon. Adding to the apprehension, Nvidia CEO Jensen Huang has raised the alarm, suggesting that AI advancements could render coding, a cornerstone skill in computer science, obsolete in the near future.

In a rapidly evolving job market influenced by Artificial Intelligence (AI), the need for education to align with emerging employment trends has become increasingly crucial. Recent data reveals significant shifts in both academic preferences and industry demands, necessitating a data-driven approach to educational adaptation.

MBAs becoming less lucrative or just another cyclical downturn

Data from educational institutions worldwide points to a concerning trend: a decline in admissions to traditional Master of Business Administration (MBA) programs. The Graduate Management Admission Council (GMAC) revealed a significant 13% drop in global MBA applications between 2018 and 2021. This trend persisted, with NDTV reporting a further 5% decline in 2023. Notably, European schools experienced a sharp decrease, with a 13% drop in all international applications in 2023.

The dwindling interest in MBAs reflects shifting preferences among prospective students. Increasingly, individuals are seeking specialised skills tailored to emerging industries like technology and data science. This begs the question: is the MBA market experiencing a cyclical downturn, or is a more profound shift underway in the demand for full-time MBAs.

Employment trends in the tech sector

A 2020 McKinsey report estimates that up to 800 million jobs globally could be lost to automation by 2030, with jobs in manufacturing, transportation, and administrative support most at risk. However, the report also highlights that up to 950 million new jobs could be created in areas like ‘data analysis’, ‘technology development’, and ‘creative content production’.

Analysis of job market data reveals a growing demand for professionals with expertise in AI-related fields such as machine learning, data science, and artificial intelligence engineering. A report by LinkedIn indicates that AI-related skills, including proficiency in ‘machine learning’, ‘data structures’ and ‘natural language processing’, are among the fastest-growing in-demand skills globally (Dec 2022 onwards).

Globally, professionals with bachelor’s and graduate degrees stand to see a slightly greater level of disruption (55% and 52%, respectively) than professionals with high school diplomas and associate degrees (50% and 47%, respectively), which suggest that they may face relatively more urgency to adapt their skills by adopting AI tools.

Education trends in the AI driven market

As the demands of the job market shift in response to technological advancements, educational institutions are reassessing their course offerings to remain relevant in the age of Artificial Intelligence (AI). Data-driven insights suggest that traditional courses focused solely on theoretical concepts may soon become redundant, while those integrating AI and emerging technologies are witnessing a surge in demand. For instance, enrollment data from the National Center for Education Statistics (NCES) indicates a notable increase in computer science programs with specialisations in AI and data analytics in the USA.

So, which skills will see an upsurge?

Data fluency: In the AI era, proficiency in data fluency is paramount. Students need to master statistical analysis, programming languages like Python (as preferred by 88% of data scientists according to a 2023 poll by KDnuggets), and data visualization tools to thrive in data-driven environments.

Critical thinking and problem-solving: With AI automating routine tasks, human-centric skills like critical thinking, complex problem-solving, and creativity are more crucial than ever. Educational programs should prioritise these skills to equip students for the unpredictable challenges of tomorrow.

Continuous learning: Given the rapid pace of technological change, fostering a culture of lifelong learning is imperative. Educational institutions must instill in students the value of continuous skill development and adaptation to new technologies to remain competitive in the evolving job market.

In an intriguing twist, it’s noteworthy how rapidly the relevance of certain fields of study is evolving. What was once considered knowledge for a lifetime now faces redundancy in less than a decade—a phenomenon previously unheard of.

ISRO like Institute for Technology

To ensure India doesn’t fall behind in the next technological wave, there’s a pressing need to establish institutions akin to the Indian Space Research Organisation (ISRO) but tailored for Artificial Intelligence (AI) and emerging technologies. Just as ISRO propelled India into the space race, these institutions could spearhead our efforts to catch up with other countries in the realm of AI and new technologies.

Given that we are behind many countries in the AI race, it’s imperative for India to invest in building robust research and development infrastructure focused on AI and related fields. By fostering innovation and collaboration between academia, industry, and government, we can position ourselves as leaders in the global AI landscape.”

Universal Basic Income: Addressing mass unemployment debate

As mass unemployment becomes a stark reality in the wake of technological advancements, it’s time to initiate discussions on implementing Universal Basic Income (UBI). With automation and AI displacing traditional jobs at an unprecedented rate, UBI offers a pragmatic solution to ensure financial stability for individuals facing job loss.

By providing a guaranteed income floor, UBI not only alleviates immediate financial hardships but also promotes economic resilience and empowers individuals to adapt to the changing job market through retraining and upskilling initiatives. It’s imperative to engage in open dialogue and explore innovative policy measures to address the challenges posed by mass unemployment effectively.

The adaptation of education to the needs of the AI-driven job market requires a data-driven approach informed by empirical evidence and industry trends. By analyzing academic preferences, employment trends, and skill demands, educational institutions can tailor their offerings to equip students with the competencies needed for success in the digital age. Through the strategic integration of AI-driven technologies, education can become equitable, accessible, personalised, inclusive, and responsive to the evolving needs of learners and employers alike.