Even an econ degree does not insulate you from AI

Summary of Even an econ degree does not insulate you from AI

by Marketplace

6m•February 4, 2026
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Overview of "Even an econ degree does not insulate you from AI" — Marketplace

This episode explores how advances in AI are shifting labor demand — not only threatening individual jobs but entire software-driven business models — and what that means for economics graduates and economics education. Host David Brancaccio interviews Wendy Carlin (professor of economics, UCL, and director of the Core Econ Open Source Curriculum Project) about early evidence employers are hiring fewer junior econ grads and how universities might adapt. The episode also includes short news segments on tax and SNAP changes, Novo Nordisk’s stock drop, and sponsor/promotional items.

Key takeaways

  • New AI tools (e.g., Anthropic’s “Cowork”) can perform end-to-end tasks — vetting contracts, booking trips, creating slide decks — triggering sharp market moves in software companies that digitize professional work.
  • Employers are already reducing hires of junior econ/business majors in some markets; anecdotal reports from Hong Kong show firms sometimes preferring humanities majors instead.
  • Economics departments should rethink curricula: move routine, well-specified problem sets toward individualized AI-assisted practice and focus classroom time on higher-order skills and AI-enabled problem solving.
  • Teaching students to use AI as a powerful tool — while preserving opportunities for deep learning and fulfilling work — is a pragmatic path to maintain graduate employability.

Interview highlights (Wendy Carlin)

  • Context: Market reaction to AI capable of completing whole tasks caused stocks of firms like LegalZoom, Salesforce, Expedia to fall sharply.
  • Evidence of hiring shifts: Firms adopting AI report hiring fewer juniors; Hong Kong business-school deans and consultants noting reduced demand for econ/business grads.
  • Education response:
    • Problem sets are structured tasks likely to be better practiced individually with AI tutors.
    • Classroom time should pivot to complex, less-structured thinking, interpretation, judgment, and AI-augmented problem design.
    • Aim to produce graduates who are experts at wielding AI to solve advanced problems, not replaced by it.
  • Core Econ Project: offers open-source textbooks/resources to support curriculum adaptation.

Data & concrete examples mentioned

  • AI catalyst: Anthropic’s Cowork system (example use cases: vetting contracts, booking trips, creating sales decks).
  • Market moves cited: LegalZoom ~–20%, Salesforce ~–7%, Expedia ~–15% (context: software companies threatened by AI automation of the services they enable).
  • Anecdote: Hong Kong employers shifting hires toward philosophy/history majors in some firms.

Implications for students and educators

  • For students: Learn to use AI as a force-multiplier — practice with AI tutors, learn prompt design, and develop skills focusing on ambiguity, ethics, and strategy that AI handles less well.
  • For departments: Rebalance assessment and classroom activity away from rote, structured problem solving and toward collaborative, judgment-based, creative, and AI-integrated projects.
  • For employers: Expect shifts in candidate profiles; demand may rise for skills in oversight, interpretation, communication, and AI orchestration.

Actionable recommendations

  • Students: Start using AI tools as study/tutoring aids to accelerate mastery of routine topics; invest time in higher-order skills (communication, interpretation, scenario design).
  • Faculty: Revise syllabi to:
    • Move repetitive problem practice to AI-assisted homework.
    • Use class time for discussion of assumptions, policy implications, ethical tradeoffs, and applied projects.
    • Incorporate AI literacy and prompt engineering into coursework.
  • Institutions: Provide training and resources (open textbooks, AI tooling access) so students from varied backgrounds can learn to use AI effectively.

Other segments in the episode

  • Tax/SNAP changes: New tax law raises standard deductions (example cited: $31,500 for married joint filers) but also expands SNAP work requirements and administrative burdens. Experts warn this could reduce SNAP participation and result in significant percentage cuts if fully implemented; states face more administrative cost and error penalties.
  • Novo Nordisk: The company warned of "unprecedented downward pressure" on prices for weight-loss drugs (e.g., Wegovy), and its stock fell ~17% in Copenhagen.
  • Sponsor: Fundrise ad for its Income Fund (private credit strategy, cited distribution rate ~7.97% and historical returns; promotional material with standard investment-risk caveats).
  • Promo: Podcast "This Is Uncomfortable" — episode on passing down Egyptian cultural and language heritage to children (guest: Eamon Ismail).

Notable quotes

  • Wendy Carlin: “Anyone who's done an economics degree will remember that they spend a lot of time doing problem sets. These are very well-specified or structured cognitive tasks…they're going to learn how to do that much better individually working with AI as a tutor.”
  • Carlin: “We should be aiming for a crop of econ majors who are super pros at using AI to solve even more advanced problems.”

Bottom line

AI is already reshaping employer demand and challenging traditional routes to employability, including economics degrees. The pragmatic response is curricular and pedagogical reform: teach students to use AI effectively, preserve learning that builds judgment and fulfillment, and focus classroom time on complex, human-centered skills that remain valuable in an AI-augmented workforce.