AI in Education Market is Expected to Reach US$12 Billion by 2028

The education market is being transformed by AI, with a predicted US$12 Billion market by 2028

The introduction of artificial intelligence is causing a revolutionary change in the education market. Leading universities like the IITs, where AI in IITs is being used to improve research and learning results, are prime examples of this AI evolution. The education sector is about to undergo a revolution in artificial intelligence that will completely change the way that people educate and learn. AI has the potential to provide previously unheard-of possibilities in the education sector as it develops, especially in high-tech educational strongholds like the IITs.

Some of the factors that are driving this growth are:

Venture capital investment in artificial intelligence and EdTech is on the rise; digital data is expanding exponentially; the ITS learning process is becoming more integrated; partnerships with education content providers are growing; cloud-based services are becoming more widely used; a trend toward personalized learning is developing; and sophisticated platforms are being continuously developed.

Challenges of AI in Education Market

Data privacy and security:

A lot of data from students, instructors, and institutions must be gathered and analyzed to use AI in education. Concerns are raised over the data's usage, storage, sharing, and access control mechanisms. Protecting the rights and interests of the parties involved as well as ensuring systemic trust and openness depend on data privacy and security.

Algorithmic bias and fairness:

Algorithms are used in AI education to make judgments and suggestions that have an impact on educators, students, and educational institutions. However, because of the data, system design, or implementation, algorithms may be unfair or biased, either on purpose or accidentally.

Human-AI interaction and collaboration:

Artificial Intelligence (AI) in education may support and supplement human educators and students, but not take their place. To guarantee that AI in education is ethical, practical, and easy to use, human-AI contact and collaboration are essential. To communicate and collaborate with AI, human educators, and students must have a thorough understanding of its workings, as well as its capabilities and limits.

Policy and regulation:

The policies and regulations governing the education sector, including those about curriculum, assessments, accreditation, quality control, and governance, are affected by AI in education. To address the ethical, legal, and social challenges that arise from the development and application of AI in education, policy, and legislation are required to offer direction, standards, and supervision.

Top Companies in AI in Education Market

Squirrel AI: A Chinese online learning startup that uses cutting-edge AI algorithms to deliver individualized K–12 after-school tutoring.

Carnegie Learning: A US-based business that provides software, professional development services, and research-based math courses driven by AI and cognitive science.

Cognii: An American startup that offers AI-driven feedback and evaluation tools for online learning environments

Nuance: A US-based firm that creates conversational AI, natural language processing, and speech recognition technology for a range of industries, including education.

Changes in AI in Education Market

The COVID-19 epidemic, the growing need for individualized learning, and technological advancements are all having a significant influence on artificial intelligence in the education sector. Several significant shifts in the AI education sector include: 

Growth and expansion: The rise is being driven by the public and private sectors' increasing investments in AI and EdTech, the growing usage of cloud-based services, the growing integration of ITS in the learning process, and the growing trend toward individualized learning.

Innovation and Diversification: In response to the varying demands and preferences of educators and students, a wide range of creative and varied solutions and services are emerging in the AI education sector. These include content delivery networks, intelligent tutoring systems, virtual facilitators and learning environments, fraud and risk management, student-initiated learning, and others.

Challenges and opportunities: AI in education has certain potential and problems of its own that must be taken advantage of. These include algorithmic bias and fairness, legislation and regulation, human-AI interaction and cooperation, and data privacy and security. A variety of stakeholders, including educators, students, developers, researchers, legislators, and regulators, must carefully analyze and work together to address these concerns.

Estimated Future Market Size of AI in Education Market

Future AI in education market size estimates range from:

The size of the worldwide market for artificial intelligence (AI) in education was estimated at US$1.82 Billion in 2021 and is projected to increase at a compound annual growth rate (CAGR) of 36.0% between 2022 and 2030.

The global market for artificial intelligence in the education sector is projected to develop at a compound annual growth rate (CAGR) of more than 49.02% to reach US$1.8 Billion by 2024.

In 2022, the size of the worldwide AI in education market was estimated to be US$2.5 Billion. The market is projected to grow at a CAGR of 40.70% from 2023 to 2028, or US$19.9 Billion.