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Computer science is not a new major at top schools, but with AI jobs in high-demand, there’s a growing list of colleges and universities offering a four-year “AI” degree specifically.

These programs generally move beyond the foundations of computer science to home in on topics such as machine learning, computing algorithms, data analytics and advanced robotics. The University of Pennsylvania recently announced that its B.S.E. in Artificial Intelligence program will begin in fall 2024. Carnegie Mellon introduced a program well before gen AI was a buzzword, in fall 2018, and MIT’s program began in fall 2022. Purdue University offers an AI undergraduate major, while many colleges and universities offer AI classes within their computer science department, even if there’s not a dedicated major.

The rise of AI-specific degree programs comes as companies are short on talent for this fast-developing field. Half of the highest-paid skills in technology are AI-specific, according to the employment website Indeed.com. Even so, there’s some degree of skepticism about the applicability of an AI-specific four-year degree given how quickly the technology is changing. But proponents say that as long as a program is steeped in computer science and other fundamentals, a focus on AI could provide a resume-building boon.

Here’s what students and their parents, as well as anyone thinking about going back to school for a new career, needs to know about a four-year AI degree:

STEM fundamentals remain critical

Students that want to pursue a degree in AI should look for a program that teaches fundamental information such as computer science concepts, statistics, mathematics and engineering, which lay the foundation for a career in an AI-related field, said Kerem Koca, chief executive of BlueCloud, a cloud service provider. The technology itself is changing, but these core underpinnings do not, and they can prepare students to be successful, even as underlying technology changes, he said.

“It’s important that AI degrees and other education training programs not only focus on specific skill development, but that the focus is on helping students learn how to learn, which includes developing an intellectual curiosity, and skills like leadership, communication and critical thinking,” said Maria Flynn, president and chief executive of Jobs for the Future, an organization that focuses on worker opportunity and education, in an email.

AI degree spike since 2011

There are a number of different programs that focus on AI at the undergraduate and graduate level, and there has been an increase in offerings and degrees being awarded for over a decade now.

According to the Georgetown University Center for Security and Emerging Technology, AI degrees have bucked the general trend in education since 2011, with positive degree conferral growth versus negative growth across all degree areas. AI-related degree awards, in particular, grew even faster than STEM degrees as a general category at bachelor’s master’s and PhD levels. Its review of government data and other sources on the higher education market described the growth of AI degree conferrals as “dramatic,” increasing 120% since 2011 at both bachelor’s and master’s levels.

Some students might also be interested in pursuing AI as an associate’s degree, which several schools, including Miami Dade College, offer.

Education relevance in fast-changing tech market

Some students may wonder if they even need a degree at all, given how fast the market is changing and the fact that more employers have expressed a willingness to hire workers without degrees if they have the appropriate, job-required skills.

It’s important to note that recent research suggests the practice of hiring people without degrees has fallen short, however, and research from the Ladders career site shows that a degree is still required for the highest paying jobs, a list that includes software engineers.

A four-year degree is still a big step up for most entering the job market for the first time, said Celeste Grupman, chief executive of Dataquest, which supplies AI-related educational materials and labs to universities. “It’s still one of the first things an employer is going to look at. It’s not going to get you disqualified, whereas not having one might.” 

Even so, several providers including Dataquest and Coursera, offer certificate programs for learners to build skills quickly. These programs may be appropriate for students who lack the time and resources to complete a four-year program, or already have a degree and are looking to upskill, Grupman said. An online platform allows students to quickly start building projects and understanding how to implement these tools successfully for employment purposes.

AI vs. computer science

It’s important for students to think critically about the curriculum for the program they are considering, how it’s different from a standard computer science curriculum, the likely career trajectory for graduates of the program and economic outcomes for graduates. “As we see in product marketing, anyone can slap ‘AI’ onto an existing product. Students should ask what aspects of AI they will be learning,” Flynn said.

It’s also important for students to carefully consider what they want. Are they looking for a program that provides exposure to AI or practice using AI, or do they want a technical program that provides foundational content and courses on AI technology? They should also consider whether they ultimately want relevant skills and knowledge that will get them into the labor market right now or whether they want a broader degree that will be a foundation for longer-term advancement, Flynn said.

“If you’re an architect, you don’t want a degree in hammers. You want to understand hammers, you want to understand zoning and you want to understand how to build a house that helps a family come alive. The same is true in AI,” said Nichol Bradford, artificial intelligence and human intelligence executive-in-residence with SHRM, an organization for human resources professionals.

How to gain an edge with employers

Some employers may look more favorably upon an AI-specific degree versus a plain-vanilla computer science degree, said David Leighton, chief executive at WITI, an organization for technology-minded professionals. “I think it sets them apart.” 

On the other hand, no one really knows right now what the value of such a degree will be in a few years. “In the year 2000, if you had an internet degree, if there was such a thing, it would have looked great,” Koca said. “Now, it wouldn’t be as applicable. But if you had it in 2002, you could have gotten a job anywhere. The same could be true for a degree in AI.” 

Given the uncertainty, some professionals said students can’t go wrong with a traditional computer science degree or an AI-specific one, provided the fundamentals are covered. Those who take the former route, however, should consider taking classes related to AI and data science, which can be important for future employment. Otherwise, students might need to “close the practical application gap themselves post-graduation,” said Bryan Ackermann, head of AI strategy and transformation at the management consultancy Korn Ferry, in an email.

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Amazon’s cloud unit records highest profit margin in at least a decade

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Amazon's cloud unit records highest profit margin in at least a decade

Matt Garman, CEO of Amazon Web Services, speaks during The Wall Street Journal’s Tech Live conference in Laguna Beach, California, on Oct. 21, 2024.

Frederic J. Brown | AFP | Getty Images

Amazon said revenue in its cloud unit increased 19% in the third quarter, just missing analyst estimates.

Revenue at Amazon Web Services totaled $27.45 billion, according to a statement Thursday, while Wall Street was expecting $27.52 billion, based on StreetAccount estimates. Year-over-year growth has accelerated for five consecutive quarters.

The artificial intelligence portion of AWS is in the billions of dollars in annualized revenue, more than doubling year over year, Amazon CEO Andy Jassy, who previously led AWS, said on a call with analysts.

“I believe we have more demand than we could fulfill if we had even more capacity today,” Jassy said. “I think pretty much everyone today has less capacity than they have demand for, and it’s really primarily chips that are the area where companies could use more supply.”

AWS leads the cloud infrastructure market over Google and Microsoft and is an important source of profit for Amazon.

On Tuesday, Google parent Alphabet said revenue from Google Cloud, which includes cloud applications as well as infrastructure, totaled $11.35 billion, up 35%. Microsoft said Wednesday that revenue from Azure and other cloud services grew 33%.

AWS recorded $10.45 billion in operating income, representing 60% of its parent’s profit. Analysts expected $9.15 billion.

The unit’s operating margin came in at 38%, the widest for AWS since at least 2014. Google Cloud reported an operating margin of 17%.

“We’re being very measured in our hiring,” Brian Olsavsky, Amazon’s finance chief, said on the call.

During the quarter, Oracle said it will bring database services to AWS.

“If this is successful, we would love to find more pieces of their application stack that could run well in AWS and help customers do that,” AWS CEO Matt Garman told CNBC in a September interview.

Also in the quarter, AWS announced plans to discontinue some services, including code-repository tool CodeCommit. Garman told TechCrunch that AWS “can’t invest in everything.”

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Amazon’s advertising business grew 19% in the third quarter

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Amazon's advertising business grew 19% in the third quarter

Dominika Zarzycka | Nurphoto | Getty Images

Amazon’s online advertising business brought in $14.3 billion in the third quarter, up 19% year over year, in line with analysts’ estimates of $14.3 billion.

The Seattle tech giant revealed the financial results of its growing advertising unit as part of its latest earnings report Thursday. Amazon’s overall third-quarter sales were $158.9 billion, ahead of analysts’ estimates of $157.2 billion.

Amazon’s online advertising business is still a fraction of the company’s overall business, but its growth over the years has made it a major competitor to Alphabet and Meta, which lead the digital advertising market. Alphabet’s Google currently represents 27.7% of the worldwide digital advertising market, followed by Meta at 22.8% and Amazon with 8.8%, according to data provided to CNBC by Emarketer.

Meta’s third-quarter advertising revenue came in at $39.9 billion, which was up 19% compared with the year prior. That was slightly ahead of analysts’ expectations of $39.49 billion, according to StreetAccount. Ads accounted for 98.3% of Meta’s overall third-quarter revenue.

Alphabet generated $65.85 billion in third-quarter ad revenue, the company reported Tuesday. That was up 10% from $59.65 billion the year prior. Additionally, advertising sales for the company’s YouTube unit rose 12% year over year to $8.92 billion.

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Intel shares jump 9% on earnings beat, uplifting guidance

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Intel shares jump 9% on earnings beat, uplifting guidance

Intel CEO Pat Gelsinger holds an artificial intelligence processor as he speaks during the Computex conference in Taipei, Taiwan, on June 4, 2024.

Annabelle Chih | Bloomberg | Getty Images

Intel shares rose 9% in extended trading on Thursday after the chipmaker reported better-than-expected revenue and issued quarterly guidance that topped estimates.

Here’s how the company did in comparison with LSEG consensus:

  • Earnings per share: Loss of 46 cents adjusted
  • Revenue: $13.28 billion vs. $13.02 billion expected

Intel’s revenue declined 6% year over year in the quarter, which ended on Sept. 28, according to a statement. The company registered a net loss of $16.99 billion, or $3.88 per share, compared with net earnings of $310 million, or 7 cents per share, in the same quarter a year ago.

As part of its cost reduction plan, Intel recognized $2.8 billion in restructuring charges during the quarter. There were also $15.9 billion in impairment charges.

Intel has been mired in an extended slump due to market share losses in its core businesses and an inability to crack artificial intelligence. CEO Pat Gelsinger revealed plans during the quarter to turn the company’s foundry business into an independent subsidiary, a move that would enable outside funding options.

CNBC reported that Intel had engaged advisors to defend itself against activist investors. In late September, news surfaced that Qualcomm reached out to Intel about a possible takeover.

The Client Computing Group that sells PC chips recorded $7.33 billion in revenue, down about 7% from a year earlier and below the $7.39 billion consensus among analysts surveyed by StreetAccount.

Revenue from the Data Center and AI segment came to $3.35 billion, which was up about 9% and more than the $3.17 billion consensus from StreetAccount.

Intel called for fiscal third-quarter adjusted earnings of 12 cents per share and revenue between $13.3 billion and $14.3 billion. Analysts had expected 8 cents in adjusted earnings per share and $13.66 billion in revenue.

During the quarter, Intel announced the launch of Xeon 6 server processors and Gaudi artificial intelligence accelerators.

As of Thursday’s close, Intel shares were down about 57% in 2024, while the S&P 500 index had gained 20%.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

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