LSI Insights - Future of Higher Education

Depth or agility? Rethinking degree structure for a volatile economy

Degree structures were designed for steadier labour markets, slower technology cycles, and clearer professional pathways. That context is shifting. AI is compressing skill half-lives, employers are rebalancing between credentials and demonstrated capability, and learners want flexibility without sacrificing rigour. The central tension is not whether degrees matter, but how they should be composed.

13 min read August 04, 2025
Executive summary
Economic volatility and AI-driven change are exposing a friction point in higher education: traditional degree structures optimise for depth over time, while modern work often rewards faster reconfiguration of skills and judgement. The opportunity is not to abandon degrees, but to rethink how depth, agility, assessment, and recognition fit together. Different futures are plausible, from credential fragmentation to renewed trust in coherent programmes. Decisions now can preserve academic integrity while improving real-world performance signals.
The degree as a time-based contract

The degree as a time-based contract

Much of the current degree structure assumes that learning is best organised into fixed durations, stable curricula, and predictable progression. That logic is increasingly questioned, not because it was irrational, but because the environment around it has changed.

Time, not mastery, remains the dominant unit

Most degree frameworks still treat time as the central organising principle: terms, semesters, credit hours, and fixed submission points. This has been an effective coordination device for quality assurance, student experience, and staffing. Yet time is an indirect proxy for capability. When labour markets are stable, the proxy works well enough. When roles mutate quickly, it can produce confusing signals: an award that certifies participation in a curriculum version that may already be drifting from current practice.

Volatility changes what a credential is for

In many sectors, capability signalling is shifting. A cybersecurity team hiring for incident response may value evidence of performance under pressure over broad coverage of topics. A product organisation adopting AI-assisted engineering may care about judgement around model risk, data governance, and human factors, areas that rarely sit neatly inside a single module. Degree structures built for coverage can struggle to show readiness for the messy edge cases that define modern work.

Governance assumptions become visible

Volatility stresses the hidden assumptions inside regulation and internal assurance: what counts as equivalence, what “up to date” means, and how often learning outcomes can be revised without undermining standards. These are not merely academic questions. They shape institutional risk, brand trust, and graduate outcomes.

Depth still wins in high-stakes domains

Calls for agility can sound like a demand for shorter, modular credentials. Yet depth is not nostalgia. In many domains, deep understanding is what prevents catastrophic error, especially when AI tools create false confidence.

Depth still wins in high-stakes domains

When failure costs are high, foundations matter

Commercial aviation did not become safer by making training more flexible; it became safer by making competence more explicit and recurrent. Similarly, in healthcare, deep clinical reasoning is not optional because pattern-matching tools exist. In finance, basic misunderstandings about risk can remain hidden until a shock arrives. These sectors remind higher education that the value of depth includes robustness under stress, not only knowledge accumulation.

AI increases the premium on judgement

AI can accelerate routine production, but it also increases the surface area for error: plausible outputs, fragile assumptions, hidden bias, and data leakage. That shifts the educational prize from knowing more facts to making better decisions about when to rely on tools, when to challenge them, and how to interpret uncertainty. That type of judgement is usually built through structured practice over time, feedback loops, and exposure to varied cases, all of which are easier to organise inside coherent programmes than isolated micro-units.

Institutional identity is tied to depth

Universities have historically served as trusted arbiters of depth. If degrees become primarily an aggregation of short units, a legitimate question arises: what becomes the distinctive institutional contribution beyond content distribution?

Science of Adult Education

Science of Adult Education

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Agility is becoming a competitive constraint

If depth is the strength of degrees, agility is becoming the constraint. Institutions face faster curriculum obsolescence, employer needs that appear suddenly, and learners who cannot always commit to large blocks of time without clearer interim value.

Agility is becoming a competitive constraint

Curriculum drift now happens within a programme

In software and digital operations, toolchains and practices can change meaningfully within a year. Consider how quickly “AI-enabled” workflows entered marketing, customer service, legal drafting, and analytics. A two-year programme designed as a single, fixed arc may struggle to incorporate emerging practices without creating an incoherent patchwork of updates. The issue is not only content freshness. It is whether learners can demonstrate competence in current workflows and constraints.

Employment pathways are less linear

Large organisations increasingly run internal talent marketplaces, rotating people through projects rather than roles. Consulting firms rebadge capability around problem types rather than job titles. These patterns reward credentials that can map to capabilities and contexts, not only disciplines. This is where modularity has a genuine advantage: it can align learning to changing project demand, provided that standards and coherence are preserved.

Interim recognition becomes a design feature

When learners pause or pivot, interim awards and stackable credit can reduce waste and improve equity of outcomes. The question is whether these interim signals are meaningful to employers and professional bodies, or whether they create noise in a crowded credential market.

The false choice between modular and coherent

Many debates assume a binary: either a long degree for depth or short credentials for agility. A more productive question is how to combine coherence with reconfigurability without diluting assessment integrity.

The false choice between modular and coherent

Coherence can be designed, not assumed

Coherence is often treated as a property of traditional programmes. In practice, coherence comes from a well-structured capability model: how concepts depend on one another, what performance looks like at each stage, and how assessment builds towards real-world judgement. A modular structure can be coherent if progression is mapped explicitly and if later assessments require the integration of earlier learning, rather than treating modules as independent transactions.

Assessment becomes the anchor

In volatile economies, content is the most perishable component of a degree. Assessment design is the durable backbone. Scenario-based assessments, applied projects, and repeatable simulations can test reasoning, trade-offs, and ethical judgement across changing contexts. Some institutions, including LSI in its AI-native online model, are experimenting with private virtual AI tutors for formative feedback and role-play simulations that stress decision-making rather than recall. The point is not technology novelty. It is whether evidence of capability can be made clearer, more comparable, and more current.

Stacking can either clarify or confuse

Stackable pathways can improve access and responsiveness, yet they can also weaken the degree if stacking becomes mere accumulation. The design challenge is to make stackability conditional on demonstrated integration, not only credit volume.

Decision tests for the next redesign

The next iteration of degree structure is likely to be shaped as much by governance and economics as by pedagogy. The most useful moves may be those that work across several plausible futures, including tighter regulation, credential fragmentation, or renewed demand for institutional trust.

Decision tests for the next redesign

What decisions remain robust across futures?

Some futures feature employers relying more on work-sample tests and less on credentials. Others see renewed trust in degrees as a defence against misinformation and low-quality training. A robust redesign tends to strengthen verification of capability and improve curriculum adaptability without undermining comparability. It also reduces the institution’s exposure to sudden shocks, such as shifts in international demand, changes in professional accreditation, or new expectations from regulators such as the Office for Students around outcomes and transparency.

An empirical study that could reduce ambiguity

A sector-wide study could track comparable cohorts across degree structures, not only by employment rate but by job performance proxies: time to productivity, manager-rated judgement in complex cases, and resilience during role change. Pairing this with analysis of assessment artefacts, such as anonymised capstones and simulation outputs, could clarify which structures best develop and signal durable capability. This evidence would be more useful than satisfaction surveys or salary snapshots that mask selection effects.

A closing insight and a harder test

A degree structure is a hypothesis about how competence forms under constraint. The most important governance question may be whether the institution can update that hypothesis continuously while protecting standards, staff workload sustainability, and the credibility of the award.

The uncomfortable question is this: if today’s degree structure were designed from scratch to maximise trustworthy evidence of judgement in a world with AI, would it still look like the one currently defended?

London School of Innovation

London School of Innovation

LSI is a UK higher education institution, offering master's degrees, executive and professional courses in AI, business, technology, and entrepreneurship.

Our focus is forging AI-native leaders.

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