When skills beat degrees in an AI economy

Hiring in Singapore has long revolved around paper qualifications despite efforts to make them less relevant. While nearly 80% of the country’s job postings in 2024 did not require the candidate to have a degree, most roles still went to those who had one.

However, the move toward an AI economy may finally be forcing employers to reevaluate their criteria.

Image credit: Arsal Ysfin with the help of AI

As the skills required to create impact are changing, academic degrees have become a weaker predictor of performance. In a skills-first economy that rewards adaptability and digital fluency, there’s a gap between how talent is assessed and the capabilities that companies say they need.

There is a growing pool of “new-collar” talent, referring to professionals who merge technical know-how with problem-solving, adaptability, and real experience. The challenge for employers is defining what being qualified means.

Mismatch

More companies are adopting AI into digital workflows, and the tech is rewriting what “entry-level” and “job-ready” mean.

According to a 2024 report from Jobstreet by Seek, 52% of professionals in Southeast Asia expect AI to alter their responsibilities, while 23% expect their role to require some reskilling. This shift is not confined to tech firms.

See also: How to break into robotics without an engineering degree

This has led to higher demand for AI-related skills. Data from Jobstreet Singapore shows a 130% year-on-year increase in job advertisement terms related to AI and tech roles such as “blockchain,” “AI scientist,” and “AI software engineer” from December 2024 to November 2025 compared with the 12 months prior.

But while demand for AI skills is accelerating, hiring practices have been slower to evolve.

A September 2025 report from Morgan Stanley predicts that AI could affect 90% of occupations to some degree. This indicates that hiring teams need to focus on candidates with skills that support long-term company goals, which will increasingly involve AI.

Outdated signals

Despite the rising demand for technical and digital skills, many employers continue to default to “degree-first” filters. In Singapore, this is reflected in a 130% spike in user searches for terms such as “degree,” “bachelor,” and “university” on Jobstreet from November 2024 to October 2025 compared with the 12 months prior.

The result is a perception gap. Employers report skills shortages, while capable candidates are filtered out because they do not fit the traditional criteria.

With AI simplifying routine work, employers no longer want hires who can merely follow task lists. They want talent who can use AI tools to streamline processes and interpret AI-generated insights for complex, real-world business contexts.

Staying ahead