AI and the Future of Education
Artificial intelligence (AI) and the future of careers and education are on many parents’ and students' minds right now. While the data continuously evolves, certain things are clear.
So far, AI has not changed who does best in the job market. Workers with the most education still earn the most and see the lowest unemployment rates. If your child is young and you are wondering whether saving for their education is still worth it, the answer is yes, especially with the flexible uses of 529 education saving plans.
What the Numbers Show
In 2025, full-time workers who were 25 and older with a bachelor’s degree earned a median of $1,578 per week, according to the U.S. Bureau of Labor Statistics (BLS). Workers whose education stopped at a high school diploma earned $966. That gap has stayed about the same for decades, even with the invention of the personal computer, the internet and the smartphone. Each of those came with predictions that higher education would matter less in the future that have not proven to be true.
The Jobs That Are Growing
In August 2026, BLS published new projections covering 2025 to 2035. They show AI pulling the workforce in two distinct directions.
The jobs expected to shrink are the ones that mostly do repeatable work. Office and administrative support are projected to lose 752,100 jobs over the next decade. That is more than any other occupation, and is driven, in part, by AI automation tools.
Most of the roles expected to grow require post-secondary education. Nurse practitioner is the fastest growing occupation in the country at 41 percent growth, and it requires a master’s degree. Data scientists follow at 34.6 percent growth. This career path also often requires higher education. Healthcare support and healthcare practitioner roles together account for close to a third of every new job projected through 2035. Many of those roles, particularly the higher paying ones, will require education or training beyond high school.
Two of the ten fastest growing occupations in the BLS report are solar panel installers (at 36.5 percent) and wind turbine service technicians (at 29.5 percent). Neither one of those requires a bachelor’s degree, but they both need certification, licensing or a training program that costs money.
Those programs are not cheap either. A certificate course or an apprenticeship still comes with tuition, tools, fees and testing costs. Families who assume a four-year degree is the only expensive educational path are sometimes surprised by how much the alternatives can cost.
What Might Matter Most
No one can say with confidence which fields will offer the strongest job prospects in 2045. But there are a few patterns we can pay attention to.
Work centered on people looks promising. The BLS projections lean toward healthcare, therapy and social services. This is driven by an aging population and rising chronic illness. Physically caring for an elderly individual or talking to a patient suffering from anxiety is not something an AI agent is likely to be effective at doing.
Work that builds and maintains physical things also looks promising. An AI agent likely can’t repair your AC, build your new house, or maintain a city’s utility lines.
Judgement may matter most of all. When a tool can produce a written draft in minutes, the valuable skill is knowing if the draft is accurate. That kind of human judgement and decision making is something higher education trains for.
Underneath all of this is a need for adaptability. The tools your 5-year-old child will use when they are 30 may not exist yet. What they will be able to use no matter what career they enter is the habit of taking on something new, then learning and mastering those skills. Formal education and training are among the few places that teach this specific kind of skill.
The Best Time to Start is Now
The Education Plan® is a 529 education savings plan, and the money in an account can be used for a wide range of qualified educational expenses. You can use a 529 for trade school, community college, registered apprenticeships, professional credentialing programs, K-12 expenses, including tuition, graduate school, and more. Take a look at everything a 529 plan can pay for, or read more about using a 529 for trade school.
In the end, one of the most valuable things you can give your child is the ability to choose from among many options. Money set aside in a 529 saving plan can allow them to choose from several educational options.
You can open an account with The Education Plan in about 15 minutes with many flexible contribution options. The earlier you start, the more time your savings will have to grow for whatever path your child takes in their future.
The ten fastest growing occupations, 2025–35
The 10 Fastest Growing Occupations, 2025–2035
Projected job growth and the education each path requires
| Occupation | Growth | Median pay | Education needed to enter | Educational Path |
|---|---|---|---|---|
| 1 Nurse practitioners | 41.0% | $132,300 | Master's degree | Nursing school and an RN license, then a master's in advanced practice nursing |
| 2 Solar photovoltaic installers | 36.5% | $53,140 | High school diploma | Often a short technical school or community college course; some enter through an apprenticeship |
| 3 Data scientists | 34.6% | $120,230 | Bachelor's degree | Four-year degree |
| 4 Wind turbine service technicians | 29.5% | $64,120 | Postsecondary nondegree award | Certificate in wind energy technology at a technical school or community college, or an associate's degree |
| 5 Medical and health services managers | 24.2% | $123,860 | Bachelor's degree | Four-year degree plus a few years of experience |
| 6 Physical therapist assistants | 23.0% | $68,380 | Associate's degree | Accredited two-year community college program, plus licensure |
| 7 Psychiatric technicians | 22.3% | $45,130 | Postsecondary certificate | Certificate or associate's degree in psychiatric or mental health technology at a community college or technical school |
| 8 Computer and information research scientists | 21.8% | $140,300 | Master's degree | Graduate school |
| 9 Occupational therapy assistants | 21.5% | $72,300 | Associate's degree | Accredited two-year program, plus a state license |
| 10 Ophthalmic medical technicians | 21.4% | $45,570 | Postsecondary nondegree award | Certificate or associate's degree in ophthalmic technology |
Sources
Growth rates: U.S. Bureau of Labor Statistics, Employment Projections 2025–35, Chart 5, released Aug. 27, 2026. Median pay: BLS Occupational Employment and Wage Statistics, May 2025, as published in the Occupational Outlook Handbook. Education categories: BLS Table 5.4, Education and Training Assignments by Detailed Occupation, and individual
Frequently Asked Questions
A 529 plan is a tax-advantaged investment account that is designed to grow savings for future education expenses for a specified beneficiary. 529 plans offer unique benefits and features that make them an appealing strategy for education related saving.
A 529 plan can be used for “qualified educational expenses.” For federal tax purposes, qualified educational expenses include:
- Tuition and fees at accredited higher education institutions
- Books
- Supplies and equipment
- Room and board for beneficiaries attending on at least a half-time basis.
- Computer technology, equipment, and internet access
- Up to $10,000 a year for K-12 tuition and expenses (Limit increase to $20,000 in 2026)
- Expenses for educational special needs services
- Transfers to an ABLE account for the beneficiary (transfer subject to annual limit)
- Apprenticeship expenses
- Up to $10,000 for student loan repayment
- Credentialing expenses and certification programs
- Roth IRA rollover for the beneficiary
If you're not sure if an expense is considered "qualified," we recommend consulting with a tax professional or advisor. Unqualified expenses will be treated like ordinary income: state and federal taxes will apply, with a 10% federal penalty for withdrawals from your 529 plan used to pay for them.
New Mexico residents can deduct contributions to The Education Plan from their state taxable income each year. This includes contributions made to an account that you are not the account owner of.
You cannot deduct contributions from federal income taxes.
Any person at least 18 years old with a valid Social Security Number (SSN) or Tax Identification Number (TIN) can open a 529 account. The account holder chooses the investment options, designates a beneficiary, and requests the distribution of funds.
The cost of college continues to rise, including tuition, housing, food and supplies, so it’s important to begin saving as soon as possible. You can learn more about how much a typical college education costs on our Cost of College page. It’s never too early or too late to start.
The Education Plan offers a variety of investment options to fit you and your family’s needs, risk tolerance and goals. You can see all of the available investment portfolios on the investments page.
Yes, you can use up to $20,000* a year to cover tuition and expenses for K-12 education.
Qualified K-12 expenses include:
- Tuition (public, private, and religious)
- Curriculum materials, books (including digital/online) and instructional materials
- Tutoring and instructional classes**
- Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission
- Dual enrollment program fees
Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies
*Starting in tax year 2026. The annual limit is $10,000 in tax year 2025 and permitted for tuition only.
**Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and—
(i) is licensed as a teacher in any State,
(ii) has taught at an eligible educational institution,
or (iii) is a subject matter expert in the relevant subject.
You can open an account with The Education Plan online or by mailing in the enrollment form. In order to open an account, you will need the following information:
- Your social security number or TIN
- Your address
- Your bank account information (in order to fund the account)
- The beneficiary’s social security number or TIN
- The beneficiary’s birthday
-The beneficiary’s address
