Universities Will Go Bankrupt: AI Visionary Warns Education Revolution Will Change Lives Forever

Tapio Bernhard Schutte, Chairman of TAPiO Management Advisory Sdn Bhd and World Economic Council (WEC) Ambassador to Malaysia.

Photo: Courtesy of Tapio Bernhard Schutte

By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH

KUALA LUMPUR: The university degree students are pursuing today may lose its value before they graduate. Medical professionals who practise without artificial intelligence support may soon be considered dangerously outdated. And Malaysia, if it moves decisively, could emerge as the “Switzerland of Asia” in the most consequential transformation of education in human history.

These are not speculative claims from a technology evangelist, but the considered assessment of Tapio Bernhard Schutte, Chairman of TAPiO Management Advisory Sdn Bhd and World Economic Council (WEC) Ambassador to Malaysia, in an exclusive interview with TNS NEWS.

Schutte is the Chairman of TAPiO Management Advisory, a consultancy specialising in bridging European industries with the ASEAN market. With more than two decades based in Malaysia, he is widely recognised as a strategic architect for foreign direct investment into the country, advising global corporations on navigating complex regulatory environments, strengthening bilateral trade relations, and advancing sustainable industrial growth across Southeast Asia.

“This will affect your life whether you like it or not,” was the opening observation of the conversation. What followed was a comprehensive blueprint for dismantling — and rebuilding — global education for the age of artificial intelligence.

The End of the University as We Know It

Schutte’s warning is unambiguous: a wave of university closures and bankruptcies is coming.

“Very simple — educational institutions that do not adapt will fade away or go bankrupt,” he says. “It was the same with electricity, the combustion engine, computers, the internet, and now AI. Those who failed to adapt disappeared.”

The disruption comes from what he terms the “intelligence factory” — AI-driven education systems that provide every learner with a personalised professor, available 24 hours a day, fluent in every language, endlessly patient, and continuously updated with the latest global knowledge.

“Imagine that instead of going to a physical building, you have a super-intelligent teacher who is your professor, coach, mentor, and lifelong learning companion all in one,” Schutte explains. “This system understands you better than you understand yourself.”

The Great Unbundling

At the core of this disruption is the “unbundling” of what universities have historically sold as a single package.

Knowledge — Once scarce, now abundant and rapidly obsolete. “Knowledge has become a commodity, obsolete the next day, like expired fruit,” Schutte says. What matters now is critical thinking paired with action.

Networks — While digital platforms offer access, Schutte cautions against over-reliance. “Online networks don’t have relationships. AI cannot replace human trust.”

Credentials — Degrees have long served as signals to employers. “The future belongs to demonstrable skills, not paper qualifications,” he argues.

Prestige — Institutional brand value is eroding. “Companies once sought knowledge workers. That model is changing.”

Ending the Fear of ‘Losing Face’

One of the most transformative aspects of AI-driven learning, particularly in Asian societies, is the removal of embarrassment from education.

“In traditional classrooms, students may hesitate to ask questions for fear of losing face,” Schutte explains. “Teachers also lack time to repeatedly explain concepts to individuals.”

AI tutors eliminate this barrier entirely. When a learner struggles, the system adapts — explaining concepts through visuals, stories, or alternative methods — without impatience or judgement.

“You will never lose face,” Schutte says.

The Skills That Will Matter Most

In an AI-dominated labour market, Schutte identifies three core competencies employers will prioritise over any diploma.

First-principles thinking — Solving problems from fundamental understanding rather than outdated procedures.

Judgement and taste — Determining what is meaningful, valuable, or ethical — a uniquely human skill.

Learning velocity — The ability to adapt faster than change itself.

He poses a pointed question to employers: should they choose a degree holder, or an individual equipped with critical thinking and a real-time 

AI mentor available around the clock?

Universities as ‘Furnaces’

Institutions that survive will undergo radical transformation.

“They must become furnaces,” Schutte says. “Places where students are challenged, shaped, and tested by real-world problems.”

AI can deliver knowledge, but universities must forge character — resilience, judgement, teamwork, and courage.

The Medical Wake-Up Call

Healthcare offers a stark illustration of what lies ahead.

“I would never consult a doctor who does not use AI,” Schutte says. “A doctor without AI is outdated daily.”

AI-assisted diagnostics allow comparisons across millions of medical cases, detecting patterns invisible to the human eye. Schutte predicts that responsible medical governance will soon require AI use, with failure to do so considered negligent.

Malaysia’s Strategic Opportunity: The ‘Switzerland of Asia’

For Malaysia, the opportunity is exceptional.

Neutral, trusted, politically stable, and already an international education hub, Malaysia possesses what Schutte describes as a “Switzerland of Asia” advantage.

The country’s rapidly expanding data-centre ecosystem, backed by billions in investment, positions it to host trusted AI education infrastructure independent of hegemonic control. Malaysia’s National Artificial Intelligence Office (NAIO) is already shaping governance frameworks to support ethical, secure AI adoption.

A Personal Testament

Now in his late 60s and dyslexic, Schutte credits AI with keeping him intellectually current at the highest level.

“AI does not discriminate,” he says. “Age is just a number. What matters is your willingness to learn.”

The Final Challenge

As the interview concluded, Schutte posed a challenge to the status quo:

“Who would willingly spend years studying static knowledge from obsolete systems, only to graduate into irrelevance?”

The education revolution is no longer coming.
It has arrived.

Source- TNS NEWS

Editor’s Note:
This exclusive interview examines how artificial intelligence is reshaping global education systems, challenging traditional university models, and opening new strategic opportunities for Malaysia. The views expressed are those of the interviewee and form part of a broader global debate on the future of learning.

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