Artificial Intelligence in Education - Forecasts from 2023 to 2028

Artificial intelligence in the education market was worth US$4.351 billion in 2021. It is projected to exhibit a remarkable CAGR of 33.91%, reaching a market value of US$33.601 billion by 2028.

In the realm of AI in education, AI-powered solutions and services serve diverse roles, including delivering knowledge, assessing and categorizing students based on their performance, and deploying intelligent tutorial systems to enhance the learning journey for both students and educators. Artificial intelligence relies significantly on deep learning, machine learning, and advanced analytics. Moreover, these solutions deliver a tailored learning experience, ensuring top-notch education quality and facilitating learners in building upon their existing knowledge and skills.

Artificial intelligence in the education market is characterized by strong consolidation and intense competition. Key players operate both in regional and global markets and employ diverse strategies to expand their market share. Some of the prominent competitors in the industry include IBM, Microsoft, Google, and others.

The increasing adoption of artificial intelligence in education can be attributed to several factors driven by the widespread use of smart devices and the growing trend of digitization across various sectors. In addition, AI solutions offer tailored learning experiences, adapting to individual user needs. They predict student paths, suggest learning trajectories, identify areas of weakness, and empower learners to assess their improvement areas, ultimately enhancing their capabilities

Rising investment in artificial intelligence is fueling the market growth

The Investment in artificial intelligence is a catalyst for the growth of AI-based learning platforms. These investments empower the development of advanced, personalized, and effective educational solutions, meeting the rising demand for efficient and tailored learning experiences. AI-driven learning platforms are reshaping education, providing lifelong learning opportunities, and reflecting the transformative power of AI in education. Countries are intensifying their commitment to shaping the AI workforce of the future, in line with the Niti Aayog National Strategy for Artificial Intelligence report from 2021. For example, the U.K. aims to establish more than 1,000 government-backed PhD researchers by 2025 and is initiating a Turing fellowship for early AI fellows. Meanwhile, China has launched a five-year university initiative to educate a minimum of 500 educators and 5,000 students focused on AI technologies.  Notably, not only national governments but also corporations are increasingly recognizing the significance and potential of AI and have pledged investments.

Market drivers

According to the Our World in Data in 2022, the data indicates a substantial corporate investment in artificial intelligence, with private investments leading at a significant 85.05 billion US dollars. This is closely followed by mergers and acquisitions at 77.17 billion, while public offerings represent a smaller share at 5.74 billion. Minority stakes round out the investment types at 7.57 billion, emphasizing the strong commitment of corporations to harness the potential of AI technologies, particularly through private funding.

Additionaly, the integration of AI-powered educational games is anticipated to drive the adoption of these solutions in the K-12 education sector. This interactive learning approach enhances the student experience and assists educators in providing better learning experiences. In a recent development, the U.S. Department of Education has launched key initiatives to enhance K-12 cybersecurity resilience. These include the establishment of a Government Coordinating Council (GCC) and the release of three K-12 Digital Infrastructure briefs, such as "K-12 Digital Infrastructure Brief: Defensible and Resilient." These efforts aim to strengthen cybersecurity resilience in the K-12 education community and bring together stakeholders from various sectors.

North America is predicted to hold the largest market share for the market

The need for artificial intelligence (AI) in education in the North American region is being driven by factors including rising investments in AI and EdTech by the public and commercial sectors, as well as rising edutainment penetration. The need for AI in education globally is also being fueled by technological innovation.

Smart content is gaining popularity in schools and other educational institutions because it helps teachers better understand learning platforms, which in turn plays a significant role in the teaching process. The demand for personalized education solutions supported by AI is another factor driving market growth. By aiding in a better understanding of students, their interests, educational history, and academic objectives, these solutions help to produce a personalized experience.

The use of AI in education improves the learning environment for both students and teachers. Improved accessibility, coaching, automated grading and administration, and simplified processes are just a few advantages it provides. According to the National Center for Education Statistics, the percentage of undergraduate students in the USA who participated in distance education for 4-year degree programs was highest for private for-profit organizations which made up 71%, whereas for both public and private non-profit organizations was 20%.

The National Institute of General Medical Sciences (NIGMS), has implemented Natural Language Processing (NLP) and Machine Learning (ML) to automate the procedure for receiving and internally referring grant applications. Program Managers are freed from the time-consuming and monotonous referral procedure owing to this new strategy, which guarantees efficient and consistent grant application referrals.

Market Key Developments

• In August 2023, eSpark, an online supplemental curriculum provider specializing in K-5 math and reading, unveiled Choice Texts, a groundbreaking approach to personalized reading instruction. This pioneering method harnesses artificial intelligence to empower students, enabling them to make independent choices and explore their unique interests in the realm of reading .
• In August 2023, Meta introduced SeamlessM4T, a Multimodal AI Model for Speech and Text Translations, capable of performing speech-to-text, speech-to-speech, text-to-speech, and text-to-text translations in up to 100 languages, depending on the specific task. These advancements underscore the growing role of AI in the education sector, addressing diverse needs and enhancing the learning experience.
• In June 2023, Microsoft unveiled its AI Skills Initiative, aimed at enabling global communities to harness the potential of AI. This initiative includes free coursework developed in collaboration with LinkedIn and a grant challenge with data.org, promoting innovative ways to train, upskill, and reskill workers in generative AI.
• In September 2023, EY introduced the EY.ai platform, backed by a substantial $1.4 billion investment. This platform combines human expertise with artificial intelligence to empower clients to confidently and responsibly integrate AI into their business transformations. EY.ai harnesses advanced EY technology platforms, AI capabilities, and extensive experience in areas such as strategy, transactions, transformation, risk, assurance, and taxation, all fortified by a robust AI ecosystem.
• In September 2023, IBM has pledged to provide AI training to 2 million individuals over the next three years, with a particular emphasis on underrepresented communities. IBM will achieve this objective through worldwide collaborations with universities, partnerships for AI training among adult learners, and the introduction of innovative generative AI courses within IBM SkillsBuild
• In May 2020, the Jenzabar Unity Platform was a unified, highly scalable integration platform-as-a-service (iPaaS) solution created to increase operational efficiency and lower the technical barriers involved in connecting campus-wide applications. Jenzabar is a leading technology innovator in higher education serving new students. The Jenzabar Unity Platform gives businesses the ability to create custom application programming interfaces (APIs) using a centralized, secure cloud-based platform and an ever-expanding set of out-of-the-box (OOB) connectors.
• In April 2023, the most cutting-edge model of OpenAI, GPT-4, was used to create CheggMate, a new AI-enhanced learning service, according to Chegg, Inc., the premier student-first connected learning platform. CheggMate, an AI conversational learning companion, made use of Chegg's industry-leading personalized learning platform, proprietary data set, and GPT4 -4's cutting-edge problem-solving capabilities to empower students to learn in real-time more efficiently and accurately than ever.

Segmentation:

By Offering

• Solutions
• Services

By Technology

• Deep Learning
• Machine Learning
• Natural Language Processing

By End-Users

• Academic Learning
• K-12 Education
• Higher Education
• Corporate Learning

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others