AI in education includes the development of computer systems capable of imitate human intelligence to perform tasks like delivering knowledge, assessing student performance, & providing personalized learning experiences, which uses technologies like deep learning,
machine learning, and
natural language processing (NLP) to improve educational software & services. These AI-enabled solutions meet numerous stakeholders in education, like teachers, students, and educators, by enhancing learning experiences and supporting more efficient knowledge delivery & assessment processes.
Further, service providers in the education sector are constantly innovating AI-based solutions customized to educational platforms. These solutions are developed to optimize the learning journey for both students & educators. With the increasing popularity of online education, there's an increasing need for AI-driven tools that can assist skill development. However, even after the growth in demand driven by the pandemic, the market growth is impacted by a shortage of skilled professionals proficient in AI capabilities.
Furthermore, to address the challenges and capitalize on the opportunities created by AI in education, stakeholders must aim to develop scalable and user-friendly AI solutions. By using AI technologies within
educational models like learner, pedagogical, and domain models, educational systems can be improve to offer more effective knowledge delivery & assessment methods. Eventually, the integration of AI in education holds the potential to revolutionize learning experiences & contribute to the development of the education sector as a whole.
As per Soocial, the AI in Education market is poised for rapid transformation, with projections indicating that over 47% of learning management tools will incorporate AI within three years. Current AI technologies can automate 20% to 40% of teachers’ workloads, enhancing efficiency. For instance, Gradescope, an AI-driven grading tool, has reduced grading time by 70%.
Additionally, AI-enabled chatbots now deliver responses to students' queries in just 2.7 seconds, significantly improving engagement. Notably, 86% of educators emphasize the importance of integrating advanced technologies, including AI, to reshape learning environments, underscoring its critical role in the future of education.
The rapid rise of AI in education is driving transformative changes, creating numerous opportunities. Conferences like the AI in Education Summit highlight innovations in personalized learning, adaptive testing, and automated grading. Recent surveys show over 70% of educators believe AI enhances teaching effectiveness.
Major deals, such as tech firms partnering with educational institutions, aim to democratize access to AI-powered tools. The market's growth offers opportunities for startups developing AI-driven learning platforms. With advancements in machine learning and data analytics, the potential to reshape education for diverse learners globally is unprecedented, fostering a more inclusive and efficient learning environment.
As per MSPoweruser, the AI in Education market is rapidly evolving, with 3% of U.S. college students admitting to using AI tools like ChatGPT for studying. Notably, 90% of these students find AI more effective than traditional tutoring. AI adoption extends to educators, with half of teachers using AI for lesson planning.
In the UK, 67% of secondary students leverage AI for homework, and AI-driven grade prediction has already helped over 34,700 students avoid failure. Globally, over 11% of academic papers now contain AI-generated content, while 78% of parents view AI-assisted work as cheating. Meanwhile, Duolingo’s AI-powered language app attracts 50 million users monthly.
Key Takeaways
- Market Growth: The AI in Education Market size is expected to grow by 80.5 billion, at a CAGR of 37.0% during the forecasted period of 2025 to 2033.
- By Component: The solutions segment is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.
- By Deployment: Cloud based is expected to get the largest revenue share in 2024 in the AI in Education market.
- By Technology: Machine learning & Deep learning technology is expected to lead the AI in Education market in 2024
- By End User: Higher education segment is expected to get the largest revenue share in 2024 in the AI in Education market.
- Regional Insight: North America is expected to hold a 36.1% share of revenue in the Global AI in Education Market in 2024.
- Use Cases: Some of the use cases of AI in Education include personalized learning paths, automated grading & feedback, and more.
Use Cases
- Personalized Learning Paths: AI algorithms can inspect the students' learning styles, choices, and performance data to personalize educational content & pace according to individual needs, which allows for personalized learning experiences, making sure that every student receives materials & instruction that match their unique needs, ultimately enhancing learning outcomes.
- Intelligent Tutoring Systems: AI-powered tutoring systems can give live feedback & guidance to students, enacting the role of a human tutor. These systems can adapt their teaching strategies based on students' responses & progress, providing targeted support in areas where students struggle & developing them to more challenging material as they master concepts.
- Automated Grading and Feedback: AI can automate the grading process for assignments, quizzes, & exams, saving educator’s valuable time. In addition, AI algorithms can give better insights to students, pointing out errors, suggesting improvements, and giving explanations, thereby helping self-assessment and assisting students understand their mistakes more easily.
- Predictive Analytics for Student Success: By analyzing many data points like academic performance, attendance, and engagement, AI can look into students who may be at risk of falling behind or dropping out. Educators can then intervene early, giving targeted support and interventions to help these students stay on track and succeed academically.
Market Dynamic
Driving Factors
The growth in the use of virtual facilitators and learning environments contributes to the growth of AI in education, as with the implementation of intelligent tutoring systems plays a major role in driving the AI in education market forward. Also, the usage of content delivery systems is fueling to the growth of AI in education. In addition, looking into fraud and risk management through AI solutions is a key driver in the education sector along with encouraging student-initiated learning processes.
Opportunities
AI can provide customized learning experiences by adapting to individual students' learning styles, strengths, and weaknesses. AI-powered learning platforms can look into student data to personalized pacing, content, and feedback to meet each student's requirements, leading to better engagement and academic performance.
Also, it can streamline administrative tasks in education, like scheduling, grading, and resource allocation. AI-powered grading systems can deliver accurate & timely feedback, freeing up educators to aim on teaching and student support. AI can also optimize class schedules & resource allocation, improving operational efficiency and lowering costs.
Also, it can assist teachers in their professional development & classroom instruction. AI-powered tools can provide personalized feedback, resources, & recommendations to assist teachers enhance their teaching practices, and also help teachers identify at-risk students & provide targeted interventions, enhancing student outcomes.
Further, AI can help connecting learning gaps and promote completion in education. AI-powered tools can give multilingual support, allowing students to learn in their native languages, and also help students with disabilities by providing assistive technology & accommodations, improving accessibility and participation.
Restrains Factors
Even though the market is growing steadily, it experiences several challenges like, AI in education needs significant investment in infrastructure, software, and training, which can be a barrier for some educational institutions, especially in developing countries. Further, it needs a certain level of technical expertise, and there is a shortage of educators with the required skills to implement and manage AI-powered tools.
Moreover, AI in education includes the collection and analysis of student data, which creates concerns about data privacy & security, as there is a need for better data protection measures to make sure the confidentiality and integrity of student data. Also, there is a limited awareness and acceptance of AI in education among educators, students, and parents, as there is a need for effective communication & education to raise awareness and acceptance of AI-powered tools in educations.
Trends
AI-powered educational platforms are largely offering customized learning experiences personalized to individual student needs. These systems analyze students' learning patterns, preferences, & strengths to give customized recommendations, adaptive content, & targeted interventions. AI-driven virtual teaching assistants are becoming more frequent, providing round-the-clock support to students.
These assistants can answer questions, provide explanations, provide feedback on assignments, and even engage in dialogue-based tutoring to improve learning outcomes. Educational institutions are using AI and data analytics to gather insights into student performance, engagement, & learning outcomes.
By looking into large volume of data, administrators can make data-driven decisions to optimize curriculum design, teaching methodologies, & resource allocation. AI technologies are being integrated into educational games and complete learning experiences to make learning more engaging &interactive which leads to increase in demand for AI based platforms. These platforms use techniques like gamification,
augmented reality (AR), & virtual reality (VR) to develop attractive environments that stimulate curiosity and provide better knowledge retention.
AI tools are being developed to enhance accessibility and inclusivity in education for students with disabilities or diverse learning needs. These tools like speech recognition, text-to-speech conversion, image recognition, and language translation capabilities, allow students with different abilities and backgrounds to look into educational content more effectively.
Research Scope and Analysis
By Component
The solutions segment is expected to dominate the global AI in education market in 2024, holding the largest share of revenue, which is expected to continue throughout the forecast period, as factors like the growth of smartphone users, increased involvement of government, better internet connectivity, and the higher adoption of digital payment options have highly supported the growth of the online education/digital market globally.
Further, this growth in online education has driven the need for AI-driven solutions. These solutions includes a range of offerings focused on improving learning, like personalized learning platforms, virtual teaching assistants, & data analytics tools customized for educational institutions.
In addition, the services segment is anticipated to experience the highest growth rate during the projection period, mainly attributable to the growth in online education post COVID-19 pandemic. The pandemic accelerated the adaptation of online learning modalities, encouraging higher investment in AI-powered educational services.
Both government bodies & private organizations are elevating up their investments in AI education initiatives to drive development in the education sector, which is expected to propel the development and deployment of innovative AI-based educational services, including curriculum design assistance, teacher training programs, and educational content development services. As a result, the services segment is expected for significant growth, contributing mainly to the overall expansion of the global AI in education market.
By Deployment
The cloud-based deployment mode is anticipated to dominate the global AI in education market in 2024. Offering scalability and flexibility, cloud-based solutions allow educational institutions to look into and implement AI applications easily, removing the need for higher on-premises infrastructure, which transforms to cost savings by bypassing large hardware installations, maintenance, & upgrades.
In addition, cloud-based deployment uses smooth collaboration & accessibility across many devices & locations, supporting remote learning and personalized educational experiences. It also showcases data storage and management, efficient for handling the higher data generated and processed by AI applications.
Furthermore, cloud-based deployment ensures regular updates & maintenance, guaranteeing access to the latest features & security measures without overloading educational institutions with software management tasks, as cloud-based deployment mode improves educational efficiency and inclusivity while removing the operational complexities and costs for institutions across the world.
By Technology
The machine learning and deep learning technology is anticipated to dominate the global artificial intelligence in education market in 2024, capturing the largest market share, which is expected to continue throughout the forecasted period. Machine learning and deep learning technologies play a major role in shaping customized learning pathways and adaptive training systems along with development of AI technology.
These technologies allow the customization of learning experiences by strongly adjusting the content, pacing, & delivery mode of instruction to meet the specific needs of individual learners. By using advanced algorithms, machine learning & deep learning empower educational platforms provide personalize experiences that optimize engagement & knowledge retention.
Furthermore, the natural language processing also known as NLP is anticipated to exhibit the fastest growth throughout the forecast period. NLP technology improves communication & interaction between humans and machines by aiming on enabling computers to understand, interpret, & generate human language.
In the context of education, NLP holds strong potential for supporting smoother interactions between students & AI-powered educational systems, which includes functionalities like language translation, voice recognition, and sentiment analysis, which can improves learning and allows more intuitive and efficient communication between learners &educational resources. As NLP continues to advance, its applications in education are expected to grow, driving further innovation & development in the AI-driven educational landscape.
By Application
Virtual facilitators & learning environments are anticipated to hold the largest segment share in the global AI in education market in 2024, as these innovative applications uses AI technologies to build interactive & attractive educational experiences. They include a variety of tools like virtual classrooms, chatbots, virtual tutors, and virtual reality (VR) simulations, allowing remote learning, personalized instruction, and self-paced learning.
By using AI, these environments meet diverse learning styles, growing educational access and including individual preferences. Further, they providing adaptive and personalized learning experiences by inspecting student data, performance, and behavior. Like, intelligent tutoring systems, provide personalized feedback, guidance, & assessments to improve student engagement and achievement, supporting a dynamic learning environment.
Further, the smart content segment is also expected for rapid growth during the forecast period, as it can be attributed to the growth in adoption of smart content solutions focused on effectively creating educational exercises for both teachers & students. Using technologies like natural language processing and computer vision, smart content tools reduce the time-consuming task of crafting interactive coursework. By automating content creation processes, these technologies allow educators to aim more on teaching & mentoring, while allowing students to look dynamic and engaging learning materials, which shows a switch towards more efficient & effective educational practices, driven by the integration of AI-powered smart content solutions.
By End User
The AI in education market is categorized into three main segments based on end-user, namely K-12 education, higher education, and corporate training and learning. Among these, the higher education segment is expected to capture the largest revenue share in 2024, which is fueled by many factors, like the growth in standards in academic education & an increasing focus on supporting students' critical thinking abilities, problem-solving skills, and readiness for higher academic pursuits & career advancement.
As universities & colleges across the world look to meet these evolving educational demands, as the higher education sector emerges as a significant driver of the AI in education market, using innovative technologies to improve teaching and learning experiences.
Further, the corporate training & learning segment are experiencing a high growth in demand, driven by dynamic market conditions & intensifying competition among organizations. In response to fast changing market landscapes, companies are largely pushed to optimize their resources & adapt quickly to emerging challenges & opportunities.
Moreover, there's a growing necessity for organizations to promote employee training processes and ensure that their workforce remains aware of the new market trends and developments. As a result, the corporate sector is largely turning to AI-driven solutions to provide efficient and timely employee training initiatives, allowing them to address changing market demands effectively, which highlights the importance of AI in corporate learning and development, as organizations look into maintain a competitive edge in a fast evolving business environment.
The AI in Education Market Report is segmented on the basis of the following:
By Component
By Deployment
By Technology
- Deep Learning & Machine Learning
- Natural Language Processing (NPL)
By Application
- Virtual Facilitators & Learning Platform
- Intelligent Tutoring System (ITS)
- Smart Content
- Fraud & Risk Management
- Others
By End User
- K-12 Education
- Higher Education
- Corporate Training & Learning
- Others
Regional Analysis
North America is expected to lead the global AI in Education market in 2024, commanding a higher revenue
share of over 36.1% in 2024, which is driven by several factors, like the presence of prominent companies specializing in the development of AI solutions & services. In addition, the region supports strong technological infrastructure facilities that provides the implementation & adoption of AI technologies in educational settings.
Moreover, North America benefits from a vast user base including educational institutions and students using AI-powered devices & platforms, further driving market growth. These factors altogether contribute to region's stronghold in the global AI in Education market.
Further, Asia Pacific emerges as the fastest-growing region during the forecast period, which can be attributed to various factors, like the expansion of market players within the region, as tech giants & startups like TechNode, Baidu, Squirrel AI, BYJU'S, and more are actively operating in the Asia Pacific market, driving innovation & competition.
Furthermore, development in AI technology, along with higher investments & expenditures by governments, drives the adoption of AI in the education sector across the region. As a result, Asia Pacific experiences an expansion in market growth, driven by the broad adoption of new technologies and the evolving educational landscape in the region.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
In the Global AI in education market, key market players look to offer a range of AI solutions and services personalized to educational needs. Established companies along with startups & tech innovators constantly look to innovate and improve their offerings to meet changing demands. Further, competition is driven by factors like technological developments, product differentiation, pricing strategies, and geographic reach.
In addition, partnerships, collaborations, and strategic alliances are commonplace as companies look to use complementary strengths & expand their market presence. With an aim on enhancing learning outcomes, accessibility, and user experience, competition in the global AI in education market remains intense as players compete to capitalize on the burgeoning opportunities presented by the digitalization of education.
Some of the prominent players in the global AI in Education Market are:
- IBM Corp
- Microsoft Corp
- BridgeU
- Blackboard Inc
- Pearson Plc
- Google LLC
- Nuance Communications Inc
- Cognizant
- Amazon Web Services
- Coursera Inc
- Other Key Players
Recent Developments
- In January 2024, Microsoft launched a set of new artificial intelligence software features & digital skill-building tools as part of a strong effort to assist educators with curriculum management & developing personalized lessons for students. In addition, it will add a feature later in year called Classwork, with which teachers can design and organize teaching materials & assignments, and which update the Microsoft Reflect program, developed for teachers to personal lesson plans for customized learning, and make it available for free.
- In January 2024, Arizona State University (ASU) and OpenAI announced a collaboration, which will be the first higher education institution to collaborate with OpenAI, as it introduces the advanced capabilities of ChatGPT Enterprise to the university, allowing faculty and staff to explore the potential of generative AI to improve learning, teaching, and discovery, while also making sure the increased levels of privacy and security.
- In December 2023, The U.S. National Science Foundation announced the EducateAI initiative, with the goal to allow educators to make high-quality, audience-appropriate artificial intelligence educational experiences available across the country to K-12, community college, four-year college & graduate students, along with adults interested in formal training in AI.
- In December 2023, California State University at Sacramento announced that it started a new institute devoted to the use of artificial intelligence in education named the National Institute for Artificial Intelligence in Education, as it announced that it will provide training to faculty members and students studying to become teachers. Another big focus for the institute will be teaching the ethical use of the technology.
- In October 2023, UK government announced that it will do an investment of USD 2.4 million in new classroom technology, which includes AI designing lesson plans and quizzes, as AI tools will be introduced in classrooms across UK to assist in lowering teachers’ workloads. Further, the funding will be used by online classroom resource Oak National Academy to enhance the technologies for use in schools across UK, before they are introduced for teachers.
- In May 2023, The UN convened the first ever global meeting with education ministers from around the globe to look into the risks &rewards of using chatbots in classrooms, a new roadmap to chart a safer digital path for all, which approaches and plans while considering the agency’s new roadmap on education &generative AI, that can develop data & content based on existing algorithms, but also make alarming factual errors, just like humans.