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Generative AI in Learning and Development Market By Deployment (Cloud-based, On-Premise), By Application, By End User - Global Industry Outlook, Key Companies (IBM Corp, OpenAI, Knewton, and others), Trends and Forecast 2024-2033

Published on : April-2024  Report Code : RC-903  Pages Count : 276  Report Format : PDF
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Market Overview

The Global Generative AI in Learning and Development Market is expected to reach a value of USD 1.3 billion by the end of 2024, and it is further anticipated to reach a market value of USD 31.4 billion by 2033 at a CAGR of 42.5%.

Generative AI in Learning and Development Market Growth Analysis

The Generative AI in Learning and Development Market holds a segment within the AI landscape dedicated to utilizing advanced generative models to revolutionize learning and talent development processes. Through state-of-the-art algorithms, this market combines machine learning techniques to craft dynamic and personalized learning experiences customized to individual preferences and needs.

Organizations can use Generative AI to enhance their employee training programs, optimize skill development initiatives, and innovate in educational content creation, as it promises to reshape the future of learning and development by providing unparalleled efficiency, scalability, and effectiveness in creating workforces for future challenges. As companies largely prioritize talent development, the integration of advanced AI technologies, mainly generative models, emerges as a transformative solution, supporting a new era of interactive and customized learning experiences customized to each learner's needs.

Key Takeaways

  • Market Growth: The Generative AI in Learning and Development Market size is expected to grow by 29.6 billion, at a CAGR of 42.5% during the forecasted period of 2025 to 2033.
  • By Deployment: Cloud-based is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.
  • By Application: Personalized Learning is expected to get the largest revenue share in 2024 in the Generative AI in Learning and Development market.
  • By End User: Educational institutions are expected to lead the Generative AI in Learning and Development market in 2024
  • Regional Insight: North America is expected to hold a 31.9% share of revenue in the Global Generative AI in Learning and Development Market in 2024.
  • Use Cases: Some of the use cases of Generative AI in Learning and Development are personalized learning content, adaptive learning paths, and more.

Use Cases

  • Personalized Learning Content: Generative AI can develop personalized learning materials customized to individual learners' needs and preferences. By inspecting data on learners' past performance, interests, and learning styles, the AI can create custom quizzes, exercises, and study guides to optimize engagement and knowledge retention.
  • Simulated Training Environments: Generative AI can replicate realistic training environments for many fields like healthcare, aviation, or engineering. These imitations provide learners with hands-on experience in a safe & controlled setting, enabling them to practice skills and decision-making processes without real-world consequences.
  • Adaptive Learning Paths: Generative AI can look into learners' progress and dynamically adjust learning paths accordingly. By constantly evaluating learners' strengths, weaknesses, and learning patterns, the AI can recommend particular courses, modules, or activities to optimize learning outcomes and ensure mastery of key concepts.
  • Content Generation and Augmentation: Generative AI can help in creating and augmenting learning content like textbooks, presentations, or training videos. By generating summaries, creating visual aids, or even generating entire sections of content based on input data, AI can help educators and instructional develop streamline content creation processes, and improve the effectiveness of educational materials.

Market Dynamic

Driving Factors

Generative AI transforms education by making it more inclusive and personalized. Imagine learning reports that the majority of educators accept AI's potential to make education accessible to everyone. AI creates learning materials in different formats and languages, removing barriers for diverse learners, like those with disabilities, which supports equitable learning opportunities globally. Institutions like the University of Pittsburgh are already using AI to create accessible student experiences. As generative AI becomes more prevalent, the education sector expects to see a switch towards more all-in-one environments, setting new standards for educational equity.

Generative AI also improves learning through customized content and captivating simulations. By customizing materials to individual learners, AI develops engaging experiences that meet various learning styles and speeds. These developments improve learner satisfaction and success rates, shaping modern educational strategies. In addition, AI-driven simulations provide hands-on learning in safe environments, enhancing engagement and retention. As AI transforms, education may see complete adaptive curriculums, optimizing learning experiences for each student and maximizing educational achievement.

Opportunities

Generative AI is set to transform the Learning and Development (L&D) sector by expanding content creation beyond traditional training modules. It introduces immersive assessments, simulations, and augmented reality (AR)/virtual reality (VR) experiences, offering a more varied learning journey to suit diverse preferences. Through AI-generated scenarios like personalized VR simulations for sales training, organizations can deliver tailored learning experiences, enhancing engagement and practical skill acquisition in simulated environments.

The growth of generative AI drives the consumerization of learning, empowering individuals to develop customized training materials as needed, which responds to the increase in demand for flexible, personalized learning outside corporate programs. By allowing personalized learning paths based on individual preferences and learning speeds, generative AI democratizes content creation and promotes lifelong learning opportunities for a large audience looking for knowledge and skill development.

Restraint Factors

The growth in AI-powered content creation in learning and development creates concerns about job displacement, mainly among instructional designers and trainers, which hampers the adoption of AI in educational strategies, focusing on the need for a balanced approach that respects human expertise while benefiting from AI's efficiencies, which impacts the market's growth pace.

Further, while generative AI offers revolutionary potential in content creation, there's a challenge in its value and lack of human touch. Stakeholders worry that AI-generated content may feel impersonal, missing the warmth important for effective learning. As a result, there's a preference for blended learning methods, integrating AI's scalability with human instructors' approach, which slows down the market's expansion, highlighting the need for collaboration between humans and AI in educational content development.

Trends

The launch of advanced NLU capabilities has transformed how learners engage with AI-powered educational platforms. Recent developments in Generative AI have highly improved the system's ability to understand and respond to natural language inputs with contextually relevant and nuanced replies, which has not only enhanced the experience of virtual tutors and chatbots but has also led to more intuitive and conversational learning experiences. 

Further, learners have enjoyed better engagement, better comprehension, and enhanced retention of knowledge. In addition, educators have gained valuable insights into learner preferences and misconceptions, allowing them to provide more targeted instruction and support, ultimately improving the overall learning experience.

Research Scope and Analysis

By Deployment

In the Generative AI L&D market, cloud-based solutions are projected to be the predominant choice for deployment, capturing over 67% share of the industry, which is driven by the cloud's inherent benefits of scalability, flexibility, and affordability, which allows institutions and organizations to look into advanced AI capabilities without the requirement for higher upfront investments in infrastructure.

Further, Cloud-based platforms provide easy updates and developments, ensuring that L&D programs stay up-to-date on the latest technological developments. While On-premise solutions give control and security, the agility and efficiency of cloud-based alternatives make them more appealing to many organizations, mainly those with limited IT resources. By using cloud-based solutions, businesses can enjoy the benefits of rapid scalability, easy access to advanced technology, and lower operational costs, ultimately driving better efficiency and innovation in their learning and development initiatives.

By Application

In the global Generative AI in Learning and Development Market of 2024, Personalized Learning comes out as the dominant sub-segment as an application, commanding a major 27% share of the overall market. Generative AI's capacity to switch through large data sets and tailor learning content to individual learner needs heralds a significant switch in educational practices, which not only boosts engagement but also improves knowledge retention and complete learning outcomes by adapting materials to match each learner's pace, preferences, and areas for improvement.

Generative AI in Learning and Development Market Application Share Analysis

In addition, other applications within the market contribute highly to its growth and diversification, which includes Content Creation and Curation, Adaptive Learning Systems, Skill Assessment and Analytics, Language Learning, and Employee Training and Development. Each of these segments uses AI capabilities to create and curate content, assess skills, provide language education, and support corporate training endeavors, respectively. These varied applications address a broad range of learning requirements and objectives, thus playing major roles in expanding the market's reach and impact across different industries and educational units.

By End User

Educational institutions are anticipated to come out as the leading end users of Generative AI in Learning and Development Market in 2024, commanding the largest market share. These institutions use the technology to transform learning experiences across all educational levels, providing scalable solutions to personalize learning for every student.
 
However, the impact of Generative AI transcends traditional educational boundaries, exceeding its benefits to many sectors like Corporate Training, Government and Defense, Healthcare, IT and Telecommunications, Manufacturing, and others. In corporate settings, Generative AI plays a major role in designing and delivering customized training programs that improve employee performance, aligning skill development with organizational objectives, which allows organizations to address specific training needs effectively, ensuring workforce readiness and competence.
 
Also, in healthcare, AI-driven Learning and Development (L&D) tools assist in constant medical education and training, allowing healthcare professionals to stay abreast of the latest developments and best practices. By using Generative AI, these sectors not only optimize learning outcomes but also drive innovation, productivity, and efficiency in their respective domains, thus realizing significant benefits beyond traditional educational contexts.

The Generative AI in Learning and Development Market Report is segmented on the basis of the following

By Deployment

  • Cloud-based
  • On-Premise

By Application

  • Personalized Learning
  • Content Generation and Curation
  • Adaptive Learning Systems
  • Skill Assessment and Analytics
  • Language Learning
  • Employee Training and Development

By End User

  • Educational Institutions
  • Corporate Training
  • Government & Defense
  • Healthcare
  • IT & Telecommunication
  • Manufacturing
  • Others

Regional Analysis

North America is anticipated to come out as the dominant force, In the Generative AI in Learning and Development Market of 2024, and is expected to hold a substantial 31.9% market share, which is driven by the region's advanced technological infrastructure and a culture deeply rooted in innovation. Mainly in the United States, North America contains a strong presence of tech giants and startups specializing in educational technology, strengthening its global leadership in AI research and development.
 
Generative AI in Learning and Development Market Regional Analysis
 
Further, large funding for AI by both educational institutions and corporate training programs solidifies North America's market dominance. The region's execution of generative AI in education focuses on personalized learning experiences and better training processes, driven by a growth in demand for AI-powered solutions that provide customizable learning pathways, dynamic content generation, and on-time feedback. Moreover, the fast acceptance of remote learning and work-from-home arrangements accelerates the adoption of AI technologies to bridge gaps in traditional education and professional development methods.

Further, the Asia Pacific region is set to experience higher growth in the Generative AI in Learning and Development market during the forecasted period, fueled by its large population and the high demand for professional education and training. Leading countries like China, India, and South Korea are at the lead, with both governments and private sectors highly investing in AI to transform learning methodologies. 

The region's strengths depend on its scalability, innovative usage of mobile technology for education, and readiness to adopt new technologies to address the educational needs of its diverse population. However, challenges like disparities in access to technology and the necessity for localized content present hurdles to overcome in fully realizing the potential of generative AI in the learning and development landscape across the region.

By Region

North America
  • The U.S.
  • Canada
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 Generative AI in Learning and Development Market, many players compete for market share, providing several solutions and services to meet the changing needs of educational institutions & organizations. Key factors driving competition like innovation in generative AI algorithms, customization capabilities, integration with current learning management systems, and scalability of offerings.
 
Market players look to differentiate themselves by focusing on features like personalized learning experiences, adaptive learning systems, and simple deployment options. In addition, partnerships and collaborations with educational institutions, corporations, and government bodies play a major role in expanding market reach and improving competitiveness. Further, the market is dynamic and characterized by ongoing technological development, strategic alliances, and an aim of delivering value-added solutions to clients in the learning and development sector.

Some of the prominent players in the global Generative AI in Learning and Development Market are:
  • IBM Corp
  • OpenAI
  • Knewton
  • D2L Corp
  • Cognizant
  • Microsoft Corp
  • Nuance Communications
  • Pearson Inc
  • Google LLC
  • Amazon
  • Other Key Players

Recent Developments

  • In February 2024, Udemy introduced a series of generative AI (gen AI)-)-enabled offerings developed to help personalized learning and better skills development. The complete Udemy Intelligent Skills Platform will include Udemy AI Learning Assistant, Udemy AI Skills Mapping and several new developments for content creators/instructors, like a gen AI-assisted Q&A feature.
  • In January 2024, Databricks launched the inaugural Generative AI Engineer learning pathway and certification, focusing on equipping data and AI practitioners with important resources for success in generative AI. Recognizing the important role of generative AI in driving innovation and productivity, Databricks focuses on the importance of upskilling and reskilling for practitioners. The training includes 3 personalized learning components designed to cater to practitioners' different levels of expertise, heading up in the Databricks Generative AI Engineer Associate Certification exam.
  • In January 2024, GSMA and IBM announced a partnership to help the adoption and skills of generative artificial intelligence (AI) in the telecom industry by launching GSMA Advance's AI Training program and the GSMA Foundry Generative AI program. The AI training program, the first in a new series of courses by GSMA Advance, looks to prepare telco leaders for the AI era and bridge skills gaps in the telecom industry, by having members with skills and knowledge to help effectively support Gen AI technologies using watsonx, IBM's AI and data platform with AI assistants.
  • In November 2023, Amazon launched a host of AI courses as part of its “AI Ready” initiative focusing on providing AI skill training to two million people globally, which comes out as new AWS study finds strong demand for AI talent and the potential for workers with AI skills to earn up to around 47% more in salaries.
  • In September 2023, IBM announced a commitment to train two million learners in AI by the end of 2026, with an aim for underrepresented communities. To achieve this goal at a global scale, IBM is expanding AI education collaborations with universities across the world, collaborating with partners to provide AI training to adult learners, and launching new generative AI coursework through IBM SkillsBuild, which would expand upon company's existing programs and career-building platforms to provide better access to AI education and in-demand technical roles.
  • In June 2023, Microsoft introduced a new AI Skills Initiative to support people and communities around the globe to learn and control the power of AI, which includes new, free coursework designed with LinkedIn; a new grant challenge with data.org for organizations to develop new ways of training, upskilling and reskilling workers in generative AI.

Report Details

                                    Report Characteristics
Market Size (2024) USD 1.3 Bn
Forecast Value (2033) USD 31.4 Bn
CAGR (2023-2032) 42.5%
Historical Data 2018 – 2023
Forecast Data 2024 – 2033
Base Year 2023
Estimate Year 2024
Report Coverage Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc.
Segments Covered By Deployment (Cloud-based and On-Premise), By Application (Personalized Learning, Content Generation and Curation, Adaptive Learning Systems, Skill Assessment and Analytics, Language Learning, and Employee Training and Development), By End User (Educational Institutions, Corporate Training, Government & Defense, Healthcare, IT & Telecommunication, Manufacturing, and Others)
Regional Coverage North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
Prominent Players IBM Corp, OpenAI, Knewton, D2L Corp, Cognizant, Microsoft Corp, Nuance Communications, Pearson Inc, Google LLC, Amazon, and Other Key Players
Purchase Options We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively.

 

Frequently Asked Questions

  • How big is the Global Generative AI in Learning and Development Market?

    The Global Generative AI in Learning and Development Market size is estimated to have a value of USD 1.3 billion in 2024 and is expected to reach USD 31.4 billion by the end of 2033.

  • Which region accounted for the largest Global Generative AI in Learning and Development Market?

    North America is expected to have the largest market share in the Global Generative AI in Learning and Development Market with a share of about 31.9% in 2024.

  • Who are the key players in the Global Generative AI in Learning and Development Market?

    Some of the major key players in the Global Generative AI in Learning and Development Market are IBM Corp, OpenAI, Knewton,, and many others.

  • What is the growth rate in the Global Generative AI in Learning and Development Market?

    The market is growing at a CAGR of 42.5 percent over the forecasted period.

  • Contents

      1.Introduction
        1.1.Objectives of the Study
        1.2.Market Scope
        1.3.Market Definition and Scope
      2.Generative AI in Learning and Development Market Overview
        2.1.Global Generative AI in Learning and Development Market Overview by Type
        2.2.Global Generative AI in Learning and Development Market Overview by Application
      3.Generative AI in Learning and Development Market Dynamics, Opportunity, Regulations, and Trends Analysis
        3.1.Market Dynamics
          3.1.1.Generative AI in Learning and Development Market Drivers
          3.1.2.Generative AI in Learning and Development Market Opportunities
          3.1.3.Generative AI in Learning and Development Market Restraints
          3.1.4.Generative AI in Learning and Development Market Challenges
        3.2.Emerging Trend/Technology
        3.3.PESTLE Analysis
        3.4.PORTER'S Five Forces Analysis
        3.5.Technology Roadmap
        3.6.Opportunity Map Analysis
        3.7.Case Studies
        3.8.Opportunity Orbits
        3.9.Pricing Analysis
        3.10.Ecosystem Analysis
        3.11.Supply/Value Chain Analysis
        3.12.Covid-19 & Recession Impact Analysis
        3.13.Product/Brand Comparison
      4.Global Generative AI in Learning and Development Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Deployment, 2017-2032
        4.1.Global Generative AI in Learning and Development Market Analysis by By Deployment: Introduction
        4.2.Market Size and Forecast by Region
        4.3.Cloud-based
        4.4.On-Premise
      5.Global Generative AI in Learning and Development Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Application, 2017-2032
        5.1.Global Generative AI in Learning and Development Market Analysis by By Application: Introduction
        5.2.Market Size and Forecast by Region
        5.3.Personalized Learning
        5.4.Content Generation and Curation
        5.5.Adaptive Learning Systems
        5.6.Skill Assessment and Analytics
        5.7.Language Learning
        5.8.Employee Training and Development
      6.Global Generative AI in Learning and Development Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By End User, 2017-2032
        6.1.Global Generative AI in Learning and Development Market Analysis by By End User: Introduction
        6.2.Market Size and Forecast by Region
        6.3.Educational Institutions
        6.4.Corporate Training
        6.5.Government & Defense
        6.6.Healthcare
        6.7.IT & Telecommunication
        6.8.Manufacturing
        6.9.Others
      10.Global Generative AI in Learning and Development Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by Region, 2017-2032
        10.1.North America
          10.1.1.North America Generative AI in Learning and Development Market: Regional Analysis, 2017-2032
            10.1.1.1.The US
            10.1.1.2.Canada
        10.2.1.Europe
          10.2.1.Europe Generative AI in Learning and Development Market: Regional Trend Analysis
            10.2.1.1.Germany
            10.2.1.2.France
            10.2.1.3.UK
            10.2.1.4.Russia
            10.2.1.5.Italy
            10.2.1.6.Spain
            10.2.1.7.Nordic
            10.2.1.8.Benelux
            10.2.1.9.Rest of Europe
        10.3.Asia-Pacific
          10.3.1.Asia-Pacific Generative AI in Learning and Development Market: Regional Analysis, 2017-2032
            10.3.1.1.China
            10.3.1.2.Japan
            10.3.1.3.South Korea
            10.3.1.4.India
            10.3.1.5.ANZ
            10.3.1.6.ASEAN
            10.3.1.7.Rest of Asia-Pacifc
        10.4.Latin America
          10.4.1.Latin America Generative AI in Learning and Development Market: Regional Analysis, 2017-2032
            10.4.1.1.Brazil
            10.4.1.2.Mexico
            10.4.1.3.Argentina
            10.4.1.4.Colombia
            10.4.1.5.Rest of Latin America
        10.5.Middle East and Africa
          10.5.1.Middle East and Africa Generative AI in Learning and Development Market: Regional Analysis, 2017-2032
            10.5.1.1.Saudi Arabia
            10.5.1.2.UAE
            10.5.1.3.South Africa
            10.5.1.4.Israel
            10.5.1.5.Egypt
            10.5.1.6.Turkey
            10.5.1.7.Rest of MEA
      11.Global Generative AI in Learning and Development Market Company Evaluation Matrix, Competitive Landscape, Market Share Analysis, and Company Profiles
        11.1.Market Share Analysis
        11.2.Company Profiles
          11.3.1.Company Overview
          11.3.2.Financial Highlights
          11.3.3.Product Portfolio
          11.3.4.SWOT Analysis
          11.3.5.Key Strategies and Developments
        11.4.IBM Corp
          11.4.1.Company Overview
          11.4.2.Financial Highlights
          11.4.3.Product Portfolio
          11.4.4.SWOT Analysis
          11.4.5.Key Strategies and Developments
        11.5.OpenAI
          11.5.1.Company Overview
          11.5.2.Financial Highlights
          11.5.3.Product Portfolio
          11.5.4.SWOT Analysis
          11.5.5.Key Strategies and Developments
        11.6.Knewton
          11.6.1.Company Overview
          11.6.2.Financial Highlights
          11.6.3.Product Portfolio
          11.6.4.SWOT Analysis
          11.6.5.Key Strategies and Developments
        11.7.D2L Corp
          11.7.1.Company Overview
          11.7.2.Financial Highlights
          11.7.3.Product Portfolio
          11.7.4.SWOT Analysis
          11.7.5.Key Strategies and Developments
        11.8.Cognizant
          11.8.1.Company Overview
          11.8.2.Financial Highlights
          11.8.3.Product Portfolio
          11.8.4.SWOT Analysis
          11.8.5.Key Strategies and Developments
        11.9.Microsoft Corp
          11.9.1.Company Overview
          11.9.2.Financial Highlights
          11.9.3.Product Portfolio
          11.9.4.SWOT Analysis
          11.9.5.Key Strategies and Developments
        11.10.Nuance Communications
          11.10.1.Company Overview
          11.10.2.Financial Highlights
          11.10.3.Product Portfolio
          11.10.4.SWOT Analysis
          11.10.5.Key Strategies and Developments
        11.11.Pearson Inc
          11.11.1.Company Overview
          11.11.2.Financial Highlights
          11.11.3.Product Portfolio
          11.11.4.SWOT Analysis
          11.11.5.Key Strategies and Developments
        11.12.Google LLC
          11.12.1.Company Overview
          11.12.2.Financial Highlights
          11.12.3.Product Portfolio
          11.12.4.SWOT Analysis
          11.12.5.Key Strategies and Developments
        11.13.Amazon
          11.13.1.Company Overview
          11.13.2.Financial Highlights
          11.13.3.Product Portfolio
          11.13.4.SWOT Analysis
          11.13.5.Key Strategies and Developments
        11.14.Other Key Players
          11.14.1.Company Overview
          11.14.2.Financial Highlights
          11.14.3.Product Portfolio
          11.14.4.SWOT Analysis
          11.14.5.Key Strategies and Developments
      12.Assumptions and Acronyms
      13.Research Methodology
      14.Contact
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