AWS: Graduates are Unprepared for the Workplace

According to new research from Pearson and AWS, very few graduates feel they have developed the skills to succeed in the workplace. 

The AI readiness report, which draws upon more than 2,700 survey responses from learners, higher education leaders and employers across six countries, finds that just 14% of graduates say they have achieved a high level of proficiency in applying AI tools in the workplace. 

More than half of employers also report that their main challenge when hiring is finding graduates with the right AI skills. 

As the use of AI accelerates in the workplace, this disconnect between higher education and the working world could slow successful AI adoption – making it more challenging for businesses to see a return on their technology investments.

The AI readiness gap

Pearson and AWS find that while 67% of respondents say that AI-driven workplace change is extremely or very fast, only 28% of employers believe universities are keeping up with these changes. 

This gap makes it more challenging for entry-level workers to develop AI readiness – the human capability to work alongside intelligent systems with a combination of technical proficiency and critical thinking skills. 

Developing the skills to succeed in an AI-enabled workplace is particularly important for entry-level workers as AI makes rapid changes to the way these roles operate, with research from the King’s Trust finding that 55% of jobs currently held by young people are likely to change due to AI. 

Higher education and the future of work

As AI makes these significant changes to the workplace, some organisations are foregoing the need for degrees entirely.

A quarter of employees reportedly said they planned to remove bachelor’s degree requirements for some roles, according to research from Resume Templates, while companies such as IBM and Google have already begun to focus more on skills-first hiring by focusing on candidate proficiency over degrees. 

Alex Karp, CEO of Palantir, is a particular advocate for this approach to hiring, revealing at the World Economic Forum in Davos that he struggled to find work after completing a PhD in Philosophy and suggests that non-specific knowledge risks leaving candidates behind. 

However, some believe that the skills developed in a university environment can still help employees succeed, even as AI capabilities increase  – such as Daniela Amodei, President and Co-Founder of Anthropic.

She told ABC News: “I actually think studying the humanities is going to be more important than ever. A lot of these models are actually very good at STEM. 

“But I think this idea that there are things that make us uniquely human – understanding ourselves, understanding history, understanding what makes us tick – I think that will always be really, really important. 

“And I think the ability to have critical thinking skills and learn how to interact with other people will be more important in the future, rather than less.”

Preparing graduates for the working world

In order to create a university system that can better prepare students for the working world, Pearson and AWS say that universities and employers need to be better aligned – with students currently lacking access to structured opportunities to practice and apply AI tools.

It recommends that employers clearly communicate their workforce needs and co-design learning with their educational partnerships to help students develop AI skills and feel confident using the technology responsibly. 

Tom ap Simon, President of Higher Education and Virtual Learning at Pearson, says that the schools who lead in AI readiness “will shape the future of workforce readiness,” sharing that “building an AI-ready workforce depends on structured, shared systems that amplify human skills and connect curriculum to real work.”