According to the results of a research carried out by the Oxford Internet Institute, Employers in the artificial intelligence (AI) sector are increasingly prioritising skills over formal education, with practical expertise commanding higher salaries than university degrees alone.
The study, published in Thecnological Forecasting and Social Chage, analysed over 10 million UK job vacancies from 2018 to 2024. While the research team found that AI related occupations typically require a higher level of education and a larger number of skills, reflecting the complex nature of these roles, the demand for AI-specific skills has surged by 21% over this period, while the proportion of AI roles requiring formal higher education qualifications has declined. In 2018, 36% of AI job postings specified a degree requirement, but by 2023, this had dropped to 31%.
The research also highlighted the financial advantage of AI skills in today’s job market. Science, engineering, and technology roles requiring AI expertise offer salaries that are, on average, three times higher than those stipulating only a degree qualification. AI skills themselves attract a 23% wage premium, compared to 13% for a master’s degree and 33% for a PhD.
According to Dr. Fabian Stephany, Departmental Research Lecturer AI and Work at the Oxford Internet Institute, and co-author of the study, the research suggests that the UK’s labour market is undergoing a fundamental shift. The traditional path of university education leading to higher pay is no longer the default for AI professionals, who are now being rewarded for practical skills and industry-specific know-how.
Dr. Stephany believes that Education and training providers should embrace flexible programmes informed by industry requirements and provide micro-certificates and credentials for skills acquired outside of formal education. A skills-based hiring approach can increase the number of potential candidates, the variety of workers’ social backgrounds and add diverse insights to the workforce.