Artificial intelligence is fundamentally transforming corporate hiring practices, accelerating a major shift from traditional degree-based requirements to skills-focused recruitment strategies. According to Lauren Winans, CEO of Next Level Benefits, education levels are becoming increasingly less important compared to practical skill sets, allowing companies to “expand their talent pipelines and keep pace with roles that evolve faster than traditional education can.”
The trend is particularly pronounced in AI-related fields, where organizations urgently need data science, machine learning, and data analytics expertise—skills typically acquired through hands-on experience rather than classroom learning. Major tech companies including Google and IBM have already eliminated degree requirements for certain positions, prioritizing skills-based hiring instead. A 2025 ResumeTemplates survey of 1,000 US hiring managers revealed that 25% of employers plan to stop requiring bachelor’s degrees this year, focusing instead on relevant experience.
Anthony Donnarumma, CEO of recruiting agency 24 Seven, describes skills-based hiring as an “operational necessity” as organizations adopt AI initiatives requiring staff to design, build, and manage AI systems. The approach delivers tangible benefits: reduced time-to-hire, improved productivity with “job-ready” applicants, and enhanced organizational agility. Lisa Highfield from McLean & Company notes it also increases workforce diversity and creates new career advancement pathways.
AI technology itself is enabling this transformation. Xplor Technologies, a payment and commerce software company, implemented the AI-powered applicant tracking system SmartRecruiters in 2022 to organize and classify role-specific skills. Kara Ayers, Xplor’s senior VP of global talent acquisition, explains: “These tools allow us to analyze resumes and profiles for competencies rather than filtering by degree, and we use AI-driven predictive analytics to match candidates based on skills alignment and potential.”
The results have been impressive: Xplor reduced recruiting agency reliance, saving approximately $3 million, while cutting time-to-hire from over 60 days to under 30 days. However, experts warn that successful implementation requires clean data frameworks, consistent job architecture, reliable performance data, and integrated HR systems. AI bias remains a significant concern, requiring robust governance and human oversight to ensure fair, objective hiring practices.
Key Quotes
Workers are able to compete on the value of their skills — not their resume format or educational history — which can lead to better job matches, higher engagement, and longer-term career growth
Anthony Donnarumma, CEO of recruiting agency 24 Seven, explains how skills-based hiring creates opportunities for workers by focusing on competencies rather than credentials, potentially leading to better career outcomes and job satisfaction.
These tools allow us to analyze resumes and profiles for competencies rather than filtering by degree, and we use AI-driven predictive analytics to match candidates based on skills alignment and potential
Kara Ayers, senior VP of global talent acquisition at Xplor Technologies, describes how her company uses AI-powered systems to evaluate candidates, demonstrating the practical application of AI in transforming recruitment processes.
AI gives companies tools to build a process that’s more accurate, more inclusive, and far more aligned with the future of work
Anthony Donnarumma emphasizes the transformative potential of AI in hiring while acknowledging that AI bias remains a real concern requiring proper governance and oversight.
It is important to be thoughtful about how AI is used and to thoroughly vet the tools in place. Both candidates and companies should maintain authenticity and find the right balance in how much they rely on AI
Kara Ayers from Xplor Technologies provides a balanced perspective on AI adoption in hiring, stressing the need for careful implementation and maintaining human judgment alongside technological tools.
Our Take
This article captures a pivotal moment where AI serves as both catalyst and enabler of workforce transformation. The irony is striking: AI technology is simultaneously creating urgent demand for new skills while providing the tools to identify and hire for those skills outside traditional pathways. The $3 million savings and halved hiring times at Xplor Technologies demonstrate concrete ROI, likely accelerating adoption across industries. However, the governance challenge cannot be overstated—AI systems trained on historical hiring data risk perpetuating existing biases at scale and speed. The real test will be whether organizations can build truly equitable skills assessment frameworks or simply automate discrimination more efficiently. This shift also pressures universities to evolve rapidly or risk irrelevance, while workers face the double-edged sword of expanded opportunity coupled with intensified competition based purely on demonstrable capabilities.
Why This Matters
This development represents a fundamental restructuring of the labor market at the intersection of AI technology and workforce evolution. As AI capabilities expand rapidly, the skills gap widens faster than traditional four-year degree programs can address, forcing companies to rethink century-old hiring practices. The shift has profound implications for social mobility and economic equity—potentially democratizing access to high-paying tech jobs for candidates without expensive college credentials while simultaneously raising concerns about standardization and bias.
For businesses, skills-based hiring powered by AI offers competitive advantages: faster recruitment cycles, cost savings, and better candidate-role matching. However, it also demands significant investment in data infrastructure and governance frameworks. The trend signals a broader transformation where continuous learning and demonstrable competencies replace traditional educational credentials as career currency. As AI tools become more sophisticated at evaluating skills, the pressure intensifies on educational institutions to adapt their models, while workers must embrace lifelong learning to remain competitive in an increasingly skills-focused marketplace.
Related Stories
- The Future of Work in an AI World
- Business Leaders Share Top 3 AI Workforce Predictions for 2025
- Microsoft AI CEO’s Career Advice for Young People in the AI Era
- PwC Hosts ‘Prompting Parties’ to Train Employees on AI Usage
- AI’s Role in Tech Hiring Freeze: White-Collar Job Market Slump
Source: https://www.businessinsider.com/ai-accelerating-trend-job-hires-college-degrees-matter-less-2025-12