Do varsities still matter in the age of AI and micro-credentials?

Universities around the world are under siege. Rising tuition fees, declining graduate employability and the rapid spread of micro-credentials and AI-powered learning platforms have led many to ask: is a university degree still worth it? For a generation raised on YouTube tutorials, Coursera courses and ChatGPT, the traditional four-year degree looks increasingly like an expensive relic.

This skepticism is not without reason. Micro-credentials promise focused, affordable job-ready skills. Employers are increasingly receptive to alternative certifications. AI has democratised access to knowledge; a student in a remote village can now access explanations, simulations and even personalised coaching.

Yet amid the noise, one crucial truth risks being forgotten: universities were never just about content delivery or developing practical skills. They were, and still are, about human connection, socialisation and formation of citizens.

Consider what happens on a university campus beyond the classroom. Friendships are forged that last a lifetime, identities are tested and reshaped, and young people learn to live independently. Debates in cafeterias, late-night study groups, sports, theatre, activism — all these seemingly peripheral activities shape individuals in ways that a Zoom lecture or a skills badge never can. Universities are crucibles where intellect, character and social responsibility intersect.

Universities teach more than narrow technical skills. Micro-credentials can certify you in data analysis or project management, but they cannot teach you how to integrate knowledge across disciplines; how to think critically about ethics, history or society; or how to engage in difficult conversations across difference.

The problem, then, is not that universities are obsolete - it is that they have allowed themselves to be perceived as overpriced training factories. Their survival depends on reclaiming their deeper purpose. How can universities cope with this crisis of trust?

First, they must reframe their value proposition. A university education should be presented not as a mere ticket to employment, but as a foundation for a meaningful life. Employers change, industries collapse, but the ability to think critically, adapt, and engage with society endures.

Second, universities should embrace hybrid models. Degrees can and should incorporate micro-credentials, allowing students to graduate with both broad education and targeted industry recognition. Stackable, modular pathways would let learners pause, work and return, making higher education a lifelong companion rather than a one-off purchase.

Third, they must lean into what AI cannot do: mentorship, discussion and intellectual companionship. AI can deliver information; it cannot provide wisdom. Faculty members should see themselves less as content providers and more as mentors who guide, challenge and inspire. This human role is irreplaceable.

Finally, they must be transparent about outcomes. In Pakistan, where higher education is already under pressure due to underfunding and quality concerns, the trust deficit is severe. Graduates often struggle to find jobs, while campuses are perceived as politically charged or disconnected from market realities. Universities must demonstrate both employability outcomes and broader contributions to social development.

Pakistan faces a particular challenge. With one of the youngest populations in the world, the country cannot afford to abandon universities to obsolescence. Online courses may fill short-term skill gaps, but they cannot substitute for the civic, intellectual and social functions universities provide. At a time when polarisation, disinformation and intolerance threaten the fabric of society, the need for institutions that cultivate critical thought, dialogue and shared identity is greater than ever.

The future of higher education will not be a simple choice between traditional universities and micro-credentials, but about integration, adaptation and clarity of purpose. Universities that cling to the old model of expensive degrees promising automatic employment will struggle. But those that embrace flexibility while defending their unique human role can thrive.