Experts have warned that the traditional value of a university degree may decline as artificial intelligence continues to disrupt higher education.
Speaking at the South Summit 2026 conference in La Nave, Madrid, in partnership with IE University, tech pioneer and founder of Google X and online education platform Udacity, Sebastian Thrun said personalized AI-powered tools are becoming capable of delivering elite-level instruction to anyone with an internet connection.
With these capabilities, AI poses a threat to traditional college degrees, potentially pushing many institutions into an existential crisis, Thrun said in a report by India’s Education Times.
“The universities that will come under severe attack from AI are not elite, top-tier institutions like the IITs or Stanford, but thousands of colleges sitting lower down on the educational ladder,” Thrun said.
He added that these institutions have long sustained their business models by reinforcing the belief that a university degree is a mandatory prerequisite for success.
Thrun said the shift is also changing how skills are evaluated, with employers increasingly prioritizing practical ability over formal credentials.
“It is becoming obvious that formal credentials matter far less than what you actually know and can execute. In fact, the largest educational entities on the planet today are Google and YouTube. Millions of people use these platforms every single day to learn highly technical skills. None of them receive a formal degree, yet they transform into highly effective, lifelong learners,” he said.
He also pointed to the rapid advancement of artificial intelligence, particularly Artificial General Intelligence (AGI), which he said is now capable of passing standard college exams and performing entry-level tasks—prompting a warning to both students and professionals.
“Those who do not use AI tools daily to complete routine tasks risk being hit hard when their roles are automated within the next five years,” Thrun said.
Despite this, he emphasized that AI cannot fully replace the human element of education.
“Education is a deeply social, human experience. You cannot simply place a child in front of a computer screen and expect them to master mathematics. It requires motivation, peer collaboration, and social factors,” he said. — Photo from Forbes
