How AI, Funding Cuts and Shifting Skills Are Redefining Education — and What It Means for the Future of Work As AI accelerates and old funding models crumble, the future of education will belong to the bold — not the nostalgic.

In recent weeks, the academic world has been rocked by news that billions of dollars in federal funding have been frozen or withdrawn from some of the most well-known universities in the country. These shifts have disrupted research, derailed planning and shaken the foundation of institutions long dependent on what now feels like a relic of the past: steady, unquestioned government funding.

But this moment is not just about budgets. It's about readiness.

The education system — particularly higher education — is being tested on all fronts: from declining enrollment to waning employer trust, from outdated course catalogs to rising student skepticism, and most powerfully, from the sudden and exponential rise of artificial intelligence.

As someone who's helped launch AI and emerging technology programs across the globe, established global innovation centers as hubs for learning and development and worked with companies on enterprise-wide reskilling, I believe this is not the time to panic. This is the time to rebuild.

We are at a historic inflection point. The old frameworks are fading. The future is already arriving — and it won't wait for us to catch up.

Related: How AI Is Transforming Education Forever — and What It Means for the Next Generation of Thinkers

When memorization doesn't make sense anymore

A few weeks ago, my 10-year-old son Matthew asked me why he had to memorize historical dates when ChatGPT could give him the answers instantly. He wasn't complaining; he was confused. Why are we being taught to work around the very tools the real world expects us to use?

Then there's my five-year-old, Zachary. He doesn't "use" AI — he absorbs it.

He passively consumes answers from "Cha-Gi-PiPi" (that's what he calls ChatGPT) like it's a magical oracle. He taps the mic, asks it questions about trains or dinosaurs and trusts it completely. To him, this isn't technology — it's just how knowledge flows.

And that's the point: He doesn't question it, contextualize it or challenge it ... yet. He's growing up in a world where AI is normal, automatic and invisible. Which means we — as educators, innovators and lifelong learners — must teach the next generation not just how to use AI, but how to think with it.

Higher education is about to get out of sync — and everyone will feel it

U.S. undergraduate college enrollment has declined by more than two million students since 2010, according to the National Center for Education Statistics (NCES). In fall 2023 alone, enrollment dropped by another 0.6%, continuing a long-term downward trend.

At the same time, employers are steadily shifting toward skills-based hiring and micro-credentials. Meanwhile, learners are turning to YouTube, AI tools, bootcamps and virtual programs that meet them where they are.

This is not about convenience. It's about alignment.

And while higher education has made major strides in response — particularly in online learning, industry credentials and AI exploration — many institutions are still operating within systems that were designed for a different era.

Related: Why We Must Reimagine Education in the Age of Technology

This isn't just a tech shift — it's a cognitive one

AI is not just another tool. It's a new mental model. Students can now access real-time tutoring, instant content generation, personalized feedback and creative prompts with the swipe of a screen. For them, it's not artificial — it's ambient.

And yet, most education systems are stuck debating whether to ban it, regulate it or ignore it. The risk is that we're preparing students for an analog world that no longer exists.

The World Economic Forum's Future of Jobs Report 2025 estimates that 39% of core job skills will change by 2030, identifying analytical thinking, AI literacy and creativity as critical capabilities. These are not just resume boosters — they're survival skills.

More importantly, the report makes one thing clear: We're still educating for a workforce that no longer exists. One defined by static roles, predictable ladders and siloed knowledge. That era is over, and education must move forward accordingly.

5 imperatives for a better future of learning

As we face a convergence of AI acceleration, funding disruption and societal change, here are five urgent actions for leaders in education and innovation:

1. Integrate AI thoughtfully and systematically

Yes, schools should be teaching students how to use and challenge AI. And many already are — I'm fortunate to be collaborating with brilliant minds in academia who are actively piloting AI-powered tools, embedding them into classrooms and reframing what it means to learn.

But let's not minimize it: This is hard work. It requires rethinking pedagogy, redesigning assessments and helping educators become co-learners. The institutions leading this change won't just teach AI — they'll be transformed by it.

2. Redesign learning for exploration, not memorization

In a world where information is infinite, facts are just the beginning. The true value lies in asking better questions, connecting ideas and applying insight.

We must shift away from rote memorization toward curricula that nurture curiosity, agility and original thought. And yes, that means assessments have to evolve, too.

3. Scale co-innovation and cross-sector partnerships

Higher education must move beyond internships and advisory boards toward true co-creation with industry. That means working side-by-side with companies to build relevant, modular, real-world-aligned learning tracks.

These partnerships aren't new, but they've never been more necessary. The institutions that succeed will blur the line between campus and career.

4. Use AI to humanize education, not just automate it

AI can streamline grading, flag struggling students, optimize course design and deliver real-time feedback. But its real power lies in what it frees educators to do: mentor, inspire and connect.

Let's use AI not to remove the teacher, but to elevate the teacher's role to its most human expression.

5. Champion innovation and entrepreneurship as core, not elective

Innovation and entrepreneurship aren't side projects. They're the engines of resilience. The students who can invent, adapt and build in uncertain conditions will lead every field — from biotech to business.

Every school should be a lab. Every campus, a studio. Because the future won't be handed to us — we'll have to build it.

Related: Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

The Great Rethink begins now

That's why I'm launching a new four-part series here on Entrepreneur.com called "The Great Rethink: How AI Is Forcing the Reinvention of Education."

In the weeks ahead, I'll explore:

1. Why the current model is losing relevance — and what replaces it

2. Why change won't come from inside the system alone

3. What AI makes possible that education never could

4. How to rebuild education like a startup — agile, scalable and learner-centered

We are not here to preserve what was. We are here to reimagine what's next.

If you're a founder, educator, policymaker or learning and development professional, this is your moment. If you're building, exploring, experimenting — reach out. Share your vision. Ask your big questions.

Because who but us will reinvent education?

Not with wishful thinking. Not with course catalogs. And certainly not with the kind of funding we once assumed would always be there.

The future won't wait. And neither should we.