NewsMacroDavidson College President Makes the Case That Liberal Arts Education Delivers Strong ROI in the AI Era

Davidson College President Makes the Case That Liberal Arts Education Delivers Strong ROI in the AI Era

Author: Fortune Crypto·

Key Takeaways

  • •The president of Davidson College contends that a liberal arts education provides a fourth justification for college by equipping graduates with adaptable thinking skills that make them resistant to AI-driven job displacement.
  • •U.S. undergraduate enrollment has declined for most of the past decade while public confidence in the value of higher education has weakened in national polls.
  • •Corporate executives report that they can teach technical skills internally but need employees who can exercise critical judgment, ask insightful questions, and collaborate across diverse teams.
  • •The Wall Street Journal surveyed five AI industry leaders, two of whom specifically recommended liberal arts colleges for their own children, while two others described ideal qualities aligned with such an education.
  • •Ninety-five percent of Davidson College's class of 2025 were either employed or enrolled in graduate school within six months of graduation.
Davidson College President Makes the Case That Liberal Arts Education Delivers Strong ROI in the AI Era

As questions persist about whether a college degree remains worth the cost, the president of Davidson College argues that artificial intelligence has introduced a powerful new justification for higher education — one that reinforces, rather than undermines, the value of a liberal arts education. The debate carries particular urgency as U.S. undergraduate enrollment has declined for most of the past decade and public confidence in the value of higher education has eroded in national polls.

Three long-standing arguments have traditionally supported the case for college. First, a graduate with a four-year degree will earn nearly a million dollars more than a non-graduate over their lifetime. While that gap has narrowed — partly due to growth in the returns to skilled trades — it remains substantial. Second, earning a post-high school degree, whether an associate's or a bachelor's, is the single most common determinant in moving someone from low income into the middle class. Third, even when a graduate's first job is less than ideal, a degree provides a competitive edge in securing a better position when one becomes available.

AI now adds a fourth answer, according to the author: a quality college degree delivers an enormous return on investment and makes graduates effectively AI-proof.

Drawing a parallel to historical innovations such as the automatic textile loom, the assembly line, and the internet, the article notes that AI is likely to produce what economist John Maynard Keynes termed "technological unemployment" — job losses resulting from efficiencies gained through innovation. The critical questions, however, are which jobs will disappear and what new roles will emerge.

Corporate executives frequently describe the skillset they need in an AI-driven economy: the ability to ask insightful questions, to analyze seemingly unrelated problems and identify connections, and to collaborate effectively with diverse colleagues and customers. According to the author, these executives say they can teach technical skills internally; what they need are team members capable of discerning what is valuable, correct, and true. This emphasis on adaptable thinking comes at a time when several major employers — including companies such as Google, Apple, and IBM — have publicly eliminated bachelor's degree requirements for certain positions, a trend often labeled "skills-based hiring." When algorithms transformed stock trading in the early 2000s, college-learned skills enabled former floor traders to pivot into wealth management. Those same skills also made graduates resilient through the dotcom bust and the Great Recession.

The author, who serves as president of Davidson College, writes that these are precisely the skills and perspectives cultivated at liberal arts institutions. Six months after graduation, 95% of Davidson's class of 2025 were either employed or enrolled in graduate school.

Earlier this year, The Wall Street Journal asked five AI industry leaders — including figures from companies such as Anthropic and Microsoft — what advice they give their own children about college and careers in an AI-driven world. Two specifically recommended liberal arts colleges, while two others described ideal qualities that align closely with such an education: broadly educated, human-focused, critical in their thinking, adaptable in the face of change, and ready to challenge ideas.

Caroline Hanke, global head of organizational growth and health at SAP, told the newspaper: "The technical skills relevant for today are not going to be relevant even two years from now. It really is more soft skills – critical thinking, adaptability. Also ethics—where human judgment comes into play."

Daniela Amodei, president and co-founder of Anthropic, said in the same article: "I might orient my kids toward more socializing and understanding, how they relate to people in their own unique way."

Liberal arts colleges typically enroll in the low four digits, fostering close-knit communities and strong faculty mentoring. Davidson's mission statement emphasizes cultivating "humane instincts" and "lives of leadership and service." The model has faced real pressure in recent years, as a number of small liberal arts colleges have closed or merged amid declining enrollment and financial strain — a backdrop that makes the case for their enduring value all the more pointed.

The article highlights several alumni whose career trajectories illustrate the adaptability of a liberal arts education. Erika Dean, a 2005 Davidson graduate, earned a degree in Spanish, worked at Bank of America, and completed law school. Rather than practicing litigation, she now serves as a global product lead at Google, where her leadership and communication skills help her guide teams of diverse backgrounds and credentials — including engineering PhDs who express surprise at her bachelor's degree in a foreign language.

Brian Fork, a 2001 Davidson graduate, took an equally exploratory path. He began as a football coach, earned a law degree, won high-profile cases at a law firm, and rose to the top staff position in the North Carolina state Senate. Since 2024, he has served as CEO of the Carolina Hurricanes, the franchise that just won the Stanley Cup.

The author concludes that higher education has served students and societies for a millennium, continually adding value through successive technological revolutions — the telegraph, the telephone, television, and the internet. While higher education may adapt slowly, it does adapt. In an era defined by fake news and artificial intelligence, the author argues that moral and social traditions help people distinguish what is real and genuinely human, and that liberal arts colleges offer graduates both stability and adaptability in an AI-driven, politically charged environment.

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