To some extent, this is understandable: a typical undergrad CS curriculum is terrible preparation for ML research. I'd even say almost any analytical field: statistics, signal processing, physics, math, etc. is better preparation for working in ML than a conventional undergrad CS curriculum. But PhD in CS with specialization in ML/AI would be ideal for most employers, since exposure to more advanced stats, linear algebra, estimation theory, etc. becomes likely.
The other factor is that ML research is moving quickly and knowledge is being rapidly disseminated in academic conferences. A PhD has an advantage there over a typical undergrad, since they've already spent years learning to parse academic literature.