The 2025 Burtch Works Compensation Report reveals a decisive shift in the academic credentials shaping the AI and Data Science talent market.
- 91% of AI professionals now hold a graduate degree (Master’s or PhD), up from 86% in 2024.
- Master’s degrees have overtaken PhDs as the most significant credential, accounting for 64% of AI professionals this year — a +19 percentage-point increase year-over-year.
- By contrast, the share of Bachelor's-only talent continues to shrink, down to 8% in AI (from 14%) and 16% in Data Science (from 24%).
For hiring managers, the message is clear:
- Graduate credentials are fast becoming the entry ticket for many AI roles, particularly in Generative AI, Data Science, and Applied LLM Engineering.
- A Master’s degree is often sufficient for production-ready AI work outside the big labs or FAANG companies, making it a strong indicator of readiness without the time and cost of a PhD.
- Employers who recognize bootcamps, applied certifications, or open-source contributions as equivalent signals of expertise can tap into a broader, motivated pool of AI and Data Science talent.
For graduates and job seekers alike, especially those considering career advancement in AI and Data Science:
- A Master’s degree now delivers the strongest ROI — offering the right balance of depth, speed, and relevance to today’s GenAI-driven market.
- While PhDs remain valuable for cutting-edge research and roles at elite labs, most organizations prioritize applied skills, operational expertise, and measurable outcomes.
- For those without advanced degrees, practical experience and demonstrable projects can help bridge the gap.
