Palantir CEO Warns: Humanities Graduates May Struggle as AI Transforms the Job Market
AI Is Changing the Job Market — And Not Everyone Will Keep Up
As artificial intelligence continues to reshape industries, many experts believe creativity and critical thinking will become essential skills. Robots can now handle repetitive tasks in coding, research, and analysis, making human ingenuity more valuable than ever.
Some, like Brandeis economics professor Benjamin Shiller, see a “weirdness premium” on the horizon — a growing demand for unconventional thinking and creativity in the labor market. But not everyone agrees with this optimistic view. Palantir cofounder and CEO Alex Karp has a much bleaker outlook for certain college graduates.
Karp’s Warning About Humanities Degrees
In a discussion with BlackRock CEO Larry Fink at the World Economic Forum in Davos, Karp said:
“It will destroy humanities jobs. You went to an elite school, and you studied philosophy — hopefully, you have some other skill, that one is going to be hard to market.”
Karp, who studied philosophy himself (earning a PhD from Goethe University, Germany), recalled how uncertain he felt when looking for his first job. His experience highlights his concern: graduates with broad liberal arts education but no specialized skill may struggle to compete in a labor market shaped by AI.
In a previous interview with Axios, he stated bluntly:
“If you are the kind of person that would’ve gone to Yale, classically high IQ, and you have generalized knowledge but it’s not specific, you’re effed.”
Not Everyone Shares Karp’s View
Some CEOs see value in liberal arts and humanities graduates even in an AI-driven economy. For example:
- Robert Goldstein, COO of BlackRock, said in 2024 that the company actively recruits graduates studying “things that have nothing to do with finance or technology.”
- Bob Sternfels, McKinsey global managing partner, told Harvard Business Review that liberal arts majors are being reconsidered as sources of creativity to complement AI’s linear problem-solving.
Palantir’s Approach: Vocational Skills Over College Prestige
Karp has long emphasized vocational training and specialized aptitude over traditional college credentials. Last year, Palantir launched the Meritocracy Fellowship, offering high school students paid internships with potential full-time positions.
The fellowship reflects Palantir’s criticism of American universities, which Karp says “indoctrinate students” and have “opaque” admissions that prioritize prestige over merit.
At Palantir, he said:
“If you did not go to school, or you went to a school that’s not that great, or you went to Harvard or Princeton or Yale, once you come to Palantir, you’re a Palantirian — no one cares about the other stuff.”
Identifying Outlier Talent
Karp focuses on identifying unique skills in employees and placing them where they are most irreplaceable. He gave examples:
- A former police officer attending junior college now manages the U.S. Army’s Maven system, a Palantir-made AI tool for analyzing drone imagery.
- Battery technicians at a manufacturing company are highly valuable because their skills can be adapted quickly to different roles.
He said:
“What I do all day at Palantir is figuring out someone’s outlier aptitude. Then I’m putting them on that thing and trying to get them to stay on that thing and not on the five other things they think they’re great at.”
The Reality for Young Workers
The job market is already showing cracks between the skills graduates bring and what employers need. Unemployment for young workers aged 16 to 24 reached 10.4% in December 2025 and is rising among college graduates.
Despite this, Karp remains optimistic for those with vocational skills:
“There will be more than enough jobs for the citizens of your nation, especially those with vocational training.”
Key Takeaways
- AI is reshaping work: Repetitive and research-based jobs may be automated, increasing demand for specialized skills.
- Generalized liberal arts degrees may struggle: According to Karp, graduates without clear, marketable skills could face challenges.
- Vocational skills are invaluable: Hands-on expertise and outlier aptitudes are highly prized in the AI era.
- Universities vs. meritocracy: Palantir favors ability and adaptability over prestige and traditional degrees.
- Opportunities still exist: Young workers with practical skills or specialized training can thrive despite AI disruption.