The proliferation of generative AI tools like ChatGPT is directly linked to a 30 percent surge in ‘A’ grades in some college courses, according to a new study that questions the value of academic transcripts for corporate recruiters.
"The results suggest that students have relied on generative AI to do better in their studies, not that these classes of students are learning more," says Igor Chirikov, a senior researcher at Berkeley’s Center for Studies in Higher Education and the paper’s author.
Chirikov’s research, analyzing over half a million grades at a large Texas public university from 2018 to 2025, found the grade increase was concentrated in courses with heavy writing and coding assignments. The study noted a significant divergence in ‘A’ grades between AI-exposed courses and other classes that began after ChatGPT's debut in late 2022.
The findings intensify a growing crisis for employers who are increasingly using grade-point averages to screen a flood of entry-level applicants. As AI makes top grades more common, the GPA is becoming a less reliable signal of a candidate's actual knowledge or ability, potentially forcing firms to adopt more costly and complex hiring assessments.
The trend comes at a difficult time for hiring managers. As the job market cools, companies are both raising standards and seeking efficient ways to filter large applicant pools. According to the National Association of Colleges and Employers, 42 percent of employers now use GPA to screen candidates, up from 37 percent in 2023.
Some firms, including Barclays and Morgan Stanley, have explicit GPA minimums for certain internships. The demand for high marks is intensifying, with data from the career site Handshake showing nearly a quarter of listings that require a GPA now ask for a 3.5 or higher, a significant jump from just nine percent in 2020.
Yet, elite universities are simultaneously sounding the alarm that grades are losing their meaning. "Grades exist to communicate what students have learned. At Yale, as at many peer institutions, they no longer do," an April report from Yale University stated bluntly. A similar report from Harvard in February acknowledged employers' need to compare students, a task made difficult by current grading policies.
The Berkeley study suggests AI is the latest, and perhaps most powerful, accelerant of a grade inflation problem that has been building for years. Chirikov warns that the "productive struggle" essential for learning is being eroded. An 'A' grade may now indicate a student's skill in using an AI model rather than a mastery of the underlying subject.
This creates a paradox for companies, according to Chelsea Schein, a vice president at hiring-trend analysis firm Veris Insights who also teaches at the University of Pennsylvania’s Wharton School. Companies want graduates who are proficient with AI tools but are wary of the technology's use in the application process itself. "They’re talking from both sides of their mouth," Schein says.
In response to this, some educators like Schein are redesigning their courses to de-emphasize AI-vulnerable assignments. She has reduced the weight of homework, which AI can often complete flawlessly, in favor of proctored midterms and in-class quizzes where the technology cannot be used.
The core issue for the corporate world is whether the widespread use of AI in university produces graduates with polished outputs but diminished critical thinking skills. As Chirikov puts it, "As much as AI is helping people become more productive, to produce more, I think it may harm their learning." This trend could ultimately devalue traditional academic credentials, forcing a costly shift in how corporations identify and recruit new talent.
This article is for informational purposes only and does not constitute investment advice.
