The AI in education market, valued at $2.5 billion in 2022, is projected to reach $88.2 billion by 2032. It’s bringing several gains and benefits for teachers and educators.
The efficiency gains from AI automating educators’ tasks like coordinating schedules, course loads, and grading, achieve better outcomes with fewer resources and in less time. Today, AI systems finish those tasks in hours, freeing educators to focus on teaching instead of administration.
AI in Edtech is transforming how educators handle tedious tasks and personalize learning for students. To stay relevant in this market, you need more than incremental improvements: you need to align with the trends shaping the future of learning. If you’re an online course provider or a vendor of software in education, here are some trends you should consider while strategizing growth.
Below are some of the recent trends of artificial intelligence in education and edtech:
Students and teachers are increasingly relying on AI in their respective day-to-day roles. These stats verify this with verifiable data:
Use of generative AI in education is increasing at a rapid pace. An International Data Corporation (IDC) study suggests that AI usage in education has increased from 45% in 2023 to 86% in 2024, the highest across all industries. The same report suggests that every dollar invested in generative AI delivers an ROI of $3.2.
This indicates that AI tools are meeting real needs in classrooms and aren’t just hype. AI is moving from experimental to essential in education.
Education organizations and institutions are realizing the value of AI within 13 months of deployment. However, it’s observed that the top barrier while implementing AI is the lack of both technical and day-to-day AI skills.
Young learners need these skills to maximize the benefits of AI and fully realize its value. A lot of development is being done in that area. For example, the European Commission (EC) and the Organization for Economic Co-operation and Development (OECD), with the support of code.org and global experts, launched a new AI Literacy Framework (AlLit). It focuses on preparing young learners to navigate an AI-integrated world with confidence and purpose.
Based on an Amazon survey, 82% of employers and employees aren’t sure which specific AI skills they should pursue. 80% of them don’t know what outside training might exist for them.
The report suggests that 73% of employers find talent with AI skills and experience. However, nearly three in four say they can’t find what they need.
This skill gap needs to be addressed. Both employers and employees need more awareness of what skills are in demand and the courses or training materials available to work on those. LinkedIn has made around 250 courses on AI, spanning seven languages, free for its users.
It’s an opportunity for companies in e-learning to create that awareness and enroll prospective learners in appropriate programs.
Khan Academy’s AI tutor “Khanmigo” was used by over 221,200 learners in its first year. Meanwhile, students worldwide are independently turning to AI chatbots for help. 89% admit to using ChatGPT for homework assignments.
These AI assistants can answer questions, give hints, and explain concepts at any time, offering one-on-one support that would be impossible for human staff to provide to every student simultaneously.
There has been a clear growth in AI usage and investment. Below are some stats on the growth clearly:
North America has the largest revenue share of 39.3% in the global AI market for K-12 education. According to the same report, the Asia Pacific is the fastest-growing market. The global AI in K-12 education market is growing at a CAGR of 38.1% from 2025 to 2033. At present, the market size is 600.5 million dollars.
AI adoption is happening organically, not just top-down. 60% of teachers have integrated AI into their daily teaching in some way.
Students aren’t falling behind in these trends. Approximately 54% of students use AI every week. 24% of students use it daily.
More than 60% students feel classroom learning technology has improved their learning and grades. Out of these technologies, two stand out: 80% of students reported that classroom exercises were the primary factor in helping them improve their learning and grades, while 71% cited machine learning-powered teaching assistants as the reason for their improvement.
This was echoed by another study that highlighted improved learner outcomes as the reason for AI adoption among 75% of the people surveyed.
Considering the growth of AI, the size of investment driving innovation is on the rise. Here are a few statistics that validate this trend.
By 2022, 44% of education organizations had included an AI initiative in their short-to-medium-term plans. Active deployments are on the rise as well. The share of institutions that are actively incorporating AI has doubled between 2019 and 2022. It is being applied to automated scheduling systems and predictive maintenance of campus facilities. However, UNESCO warns that only 10% of schools and universities have formal guidelines on AI.
Globally, companies are turning toward AI to improve employee learning and development. Seventy percent of HR leaders feel that AI will significantly change the learning and development space in workplaces.
When the corporate e-learning market is projected to reach $334.96 billion by 2030, this creates a lot of space for investors and innovators to make their mark on the market. The market was $104.32 billion in 2024.
The early results have been quite promising. AI-powered training improves learning efficiency by 57%, which suggests that workers learn new skills quickly than in a traditional training setting.
Companies have reported significant cost savings while using AI to automate and personalize learning and development. The costs got reduced by roughly 30% on average.
These stats show that experimenting with AI in education needs much more consideration than just implementation:
In 2024, 26% of U.S. teens used ChatGPT for schoolwork, a double increase from 2023 (13%). AI-heavy submissions are on the rise at the high school and college levels. In the 2023-24 school year, 63% of teachers reported that students had been accused of using generative AI in their schoolwork, up from 48% the previous school year.
Teachers falsely flag students’ work as AI-generated due to false positives in AI detection tools. The impact hits Black teens hardest at 20%. Only 10% of Latino and 7% of white teens are affected. This means AI-detection tools in education can disproportionately penalize minority students.
Generative AI benefits concentrate where bandwidth and devices are adequate. It causes access gaps for some students, making it tricky for them to ensure AI accessibility in education.
Have more questions? Find the answers below.
There are many successful cases worldwide. For example, Georgia Tech’s Jill Watson, an AI teaching assistant who answered student questions online, significantly reduced response times and TA workloads.
AI systems often collect student data to function, so schools must ensure this data is secure and used responsibly. Moreover, if an AI tutoring system or grading tool has biases, perhaps from the data it was trained on, it could treat or evaluate students unfairly.
AI-driven software can adjust the difficulty and style of lessons in real time based on a student’s performance. For example, if a student struggles with a math concept, an AI platform can provide extra practice problems or offer a hint at an alternative method of explanation. Conversely, if a student masters material quickly, the AI can introduce more advanced topics to keep them challenged.
AI literacy is essential. Teachers should have a basic understanding of how AI works, its capabilities and limitations, and how it makes decisions. This helps in selecting appropriate tools and using them effectively. Ethical and critical thinking skills are important as well. Teachers must guide students on the proper use of AI, including when to use it and how to avoid misuse, and be vigilant about issues like bias or misinformation that AI might produce.
More than 60% of students feel that classroom learning technology has improved their learning and grades. AI’s ability to personalize instruction leads to students gaining a better understanding of material and filling learning gaps more efficiently.
You would need both quantitative and qualitative indicators. The key metrics would include:
As AI is gaining high prominence in the sector, especially for teachers. Systems that make a teacher’s job easier will likely be in heavy demand. This also addresses the global teacher shortage, where existing teachers and coaches can be empowered to deliver more. AI can automate administrative support and assist students while offering them supplemental instructions.
This feels like an opportunity, but there are negative sides to it too, as seen above. You need to be cautious about implementing AI in edtech. If done correctly, it has the potential to generate significant positive ROI through efficiency gains.
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