California State University is betting that artificial intelligence will transform the workplace — and that its 470,000 students need to learn how to use it before they graduate.
Last year, CSU became the nation’s first public university system to pay for students’ access to ChatGPT Edu. It has awarded over $3 million in grants for faculty to experiment with how to use AI in classrooms. Several campuses now train students in how to responsibly use the technology.
Those measures are all pieces of CSU’s strategy to prepare students for a future labor market reshaped by AI. But the investment in AI has come under criticism from some CSU faculty, and some students remain skeptical of the value of knowing how to use AI even as most are concerned the developing technology will threaten their chances of landing a job and keeping it.
The success of CSU’s AI strategy will depend on the extent to which AI affects the workforce that today’s college students will soon enter.
Hiring is frozen in many sectors right now as employers wait to see the true extent artificial intelligence will change the labor market, said Eric Bettinger, a leading education economist with Stanford Graduate School of Education. But it’s not clear if the slowdown in the labor market can be attributed to AI.
As with previous emerging technologies, AI is forcing employers to decide whether they should replace workers with the technology, or hire more employees who can leverage AI to be more productive, Bettinger said.
New graduates are facing a difficult labor market, considering the unemployment rate for this population has steadily risen since 2022, according to the Federal Reserve Bank of New York.
“The reality is that the world outside of school isn’t slowing down, and we need to prepare our students for that reality,” James Frazee, San Diego State University’s vice president for information technology, told EdSource.
Students worry AI is taking their future jobs
Ismaeel Malik, a San Jose State University justice studies student, said he worries about AI taking over jobs in his desired field.
“Entry-level jobs are work that people don’t want to do,” Malik, who will graduate next spring, told EdSource. Malik said he doesn’t think AI proficiency will make it easier to win a position out of college.
Other San Jose State students who spoke with EdSource say they think some majors will be more affected than others. San Jose State prenursing student Jade Goodewin said the “hands-on” part of her preferred future career seems fairly AI-proof. But second-year student Vien Tang, who is studying advertising, said that AI could replace some of the work of entry-level jobs in the advertising industry.
“It’s definitely a possibility, because I think a lot of companies try to cut costs,” Tang said. “There’s a likelihood of that happening.”
Given SJSU’s proximity to Silicon Valley and many companies whose technologies are reshaping the workforce, the university hopes to be a leader in AI adoption, said Sandra Hirsh, special assistant to the university’s provost for AI initiatives.
“We need to be preparing students with whatever the latest opportunities are, but also prepare students for the fact that change and evolution are going to continue to happen,” she said.
Hirsh said companies want graduates to have a basic understanding of AI and how to use it in their work. Despite the nebulous changes happening in the job market, companies that hire SJSU graduates have told university leaders that students also need skills in leadership, inventiveness and ethics.
The CSU system is paying $13 million a year to provide ChatGPT Edu to all 470,000 CSU students.
Artur Gafurov, president of the California State Student Association and a fourth-year student at San Jose State, said many students appreciate access to AI tools like ChatGPT Edu, but don’t necessarily know how to use them responsibly and effectively.
“I know a lot of students who are taking it upon themselves to learn a bit more about the tool and restrict themselves with how they use it,” Gafurov said.
Some question the value of AI initiatives
Other private and public universities have signed agreements with companies such as OpenAI to give students access to large language models, including ChatGPT Edu. Large public university systems, such as State University of New York, have also developed systemwide AI policies, and some colleges, such as Northwestern University, have launched AI majors.
But not everyone at CSU has embraced the growing use of AI on campuses. Some professors pushed back on the OpenAI deal after CSU signed it in early 2025. Martha Lincoln, an anthropology professor at San Francisco State University, said CSU administrators did not clearly explain how AI would be used on campuses and in classrooms by students.
“What will students be doing with AI that’s so valuable? If it’s so valuable to them professionally, educationally, where is that value and what does it look like?” Lincoln said.
Martha Kenney, a professor in the SFSU Department of Women and Gender Studies, said CSU’s claims that AI is helping prepare students for the changing labor market are dubious because the university has not clearly identified skills young people should develop for their future careers.
“It’s possible it has no use for our students in this way,” Kenney said.
According to an OpenAI spokesperson, ChatGPT Edu provides students with access to the company’s latest large language model, and includes plug-ins that students and faculty can use to personalize their accounts for teaching and learning.
University officials say providing access to tools like ChatGPT is essential to prevent a digital divide for CSU students who may not be able to afford subscriptions to these technologies.
“We believe we’re doing the right thing to serve our mission to prepare our students for the future workforce,” said Ed Clark, CSU’s chief information officer.
The future workforce
Erika McEntarfer, the former commissioner of the Bureau of Labor Statistics and a policy fellow at the Stanford Institute for Economic Policy Research, said some experts in recent years have forecast that AI would wipe out white-collar workers’ jobs. There’s little evidence that has happened, she said.
It’s difficult for universities to predict which skills will be in demand in the future, she said, but colleges should prepare their students for disruptions to their careers. She noted that roughly 60% of today’s jobs didn’t exist in 1940.
Universities need to prepare students for a tough labor market, and not just because of AI, McEntarfer said. The recent rise in the unemployment rate among new graduates started before ChatGPT was introduced in 2022, she said.
McEntarfer’s advice to recent or soon-to-be graduates is to develop skills that make you a good “human” worker, such as small talk, showing up to work on time and meeting the needs of company leaders.
“With AI you need to make sure you’re using it as a personal trainer, not a human forklift,” McEntarfer advised future college graduates. “Hopefully that’s what colleges are doing.”
Mariana Sanchez is a fourth-year journalism major at San Jose State University and a member of the EdSource California Student Journalism Corps.
This story was originally published by EdSource.
EdSource is an independent nonprofit organization that provides analysis on key education issues facing California and the nation. LAist republishes articles from EdSource with permission.
