ServiceNow CEO warns AI could push recent grad unemployment near 40%
Bill McDermott, chief executive of cloud computing firm ServiceNow, told CNBC that artificial intelligence advancement could drive recent college graduate unemployment to nearly 40%. He cited AI agents handling work that graduates traditionally performed.
The Federal Reserve Bank of New York reported recent college graduate unemployment at 5.7% at the end of last year, with underemployment for the same group at 42.5%. McDermott's projection suggests a sharp increase from current levels.
Large technology companies continue cutting staff. Fintech firm Block announced layoffs of roughly 4,000 employees - half its workforce - this month.
Universities respond by adding AI programs
Colleges are moving to address the shift. The University of North Texas announced an AI major starting next fall, joining dozens of institutions adding similar programs weekly.
Michael McPherson, the university's provost and vice president for academic affairs, said the new program responds to a "ridiculously rapidly evolving world." Major universities and Ivy League schools across the country have launched AI courses and degree tracks in recent months.
For educators, this shift presents both challenge and opportunity. Understanding how AI affects employment outcomes-and how to teach students to work alongside these tools-has become central to curriculum planning. AI for Teachers resources can help education professionals stay current with these changes and integrate AI literacy into their instruction.
Schools face pressure to prepare graduates for a workforce where AI handles routine tasks. The programs emerging across higher education suggest institutions recognize the gap between current training and what employers expect.
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