Future Predictions for the AI Education Industry: Expected to Drive AI Education Towards Systematic and Scientific Development
-
Recently, Zhang Zhi, a representative of the Shanghai Municipal People's Congress and Director of the Baoshan District Education Bureau, stated that the rapid development of artificial intelligence technology has had a tremendous impact on education, especially with general-purpose large models like ChatGPT accelerating their integration into various learning, work, and life scenarios. The possibility of intelligent technology reshaping society and education is becoming increasingly evident. As a national comprehensive education reform pilot zone, Shanghai aims to lead the way in intelligent education and provide reform experience for the digital transformation of education nationwide. Currently, many provinces and cities across the country are actively promoting AI education, making it a compulsory subject in regional primary and secondary schools to fully popularize AI education. It is suggested that Shanghai actively advance the research on local standards for related courses and promote the comprehensive popularization of AI education.
AI education refers to a multi-level AI education system for the entire population, including the establishment of AI-related courses in primary and secondary schools. Many regions have already begun exploring AI education during the compulsory education stage, but the foundations and conditions vary across areas. Challenges such as the lack of intelligent equipment support and top-level design involving local education administrative and research departments remain. Through collaborative efforts involving government, industry, academia, research, and application, there is hope to drive AI education towards a more systematic and scientific direction.
Current Status of the AI Education Industry and Investment Analysis
The AI education industry chain includes multiple segments such as hardware, software, content, and operational services. Among these, intelligent hardware forms the foundation of the entire industry chain, including products like intelligent educational robots and smart desks. Software is the core of intelligent education, encompassing personalized learning and intelligent teaching. Content is the key to intelligent education, involving the development and application of various educational resources. As of June 30, 2021, there were 60 AI education companies worldwide that had raised over $100 million in funding across China, the United States, and India. European AI education firms generally secured relatively smaller funding amounts, while Chinese companies attracted greater capital attention with larger funding rounds. India has seen the emergence of several major AI education companies in recent years.
In China, AI education companies predominantly fall into Series C, D, and E funding rounds, accounting for 46% of total funding. Companies in Series F and beyond represent a significant 23% share. Approximately seven out of ten Chinese AI education firms have undergone at least three funding rounds, indicating the industry's maturation with established players dominating the market. Meanwhile, Series A and B companies still account for about 31%, reflecting continued intense competition and strong entrepreneurial interest in China's AI education sector.
"AI+Education" refers to the deep integration of artificial intelligence with educational development, utilizing AI applications in educational scenarios to promote equity, enhance quality, and achieve personalized learning. Specifically, "AI+Education" encompasses a collection of innovative technologies, models, and practices in the education field, which can be categorized into "Computational Intelligence + Education," "Perceptual Intelligence + Education," and "Cognitive Intelligence + Education." This evolution signifies AI+Education's progression from basic "storage and calculation" capabilities toward "audio-visual recognition" functionalities, ultimately aiming to achieve "comprehension and reasoning" abilities. From the perspective of educational activities, current educational scenarios can be divided into teaching, learning, management, and assessment.
The 'teaching' and 'management' aspects primarily involve educators. Teaching focuses on executing instructional tasks, including lesson planning, preparation, instruction, Q&A, test creation, and grading. The core need here is to reduce workload and achieve precision teaching. Management involves coordinating administrative tasks such as staff recruitment, student-teacher supervision, admissions, class scheduling, and campus development. The key requirement is improving efficiency for scientific management.
The 'learning' and 'assessment' aspects center on students. In learning scenarios, students engage in previewing lessons, attending classes, reading, completing assignments, reviewing, taking exams, and internships. Given significant individual differences, the core need is adaptive, personalized learning. Assessment scenarios mainly involve large-scale standardized testing, where test creation and grading are labor-intensive and inefficient. The priority is automated evaluation while maintaining accuracy.
Globally, AI applications in education remain more concentrated in teaching-related scenarios but are becoming increasingly diverse. US and Indian AI education companies place greater emphasis on competency assessment, while Indian firms also focus on personal career planning. Chinese AI education companies prioritize technological applications in teaching with less attention to assessment.
Applications are evolving from simply replacing teachers' repetitive tasks to proactively addressing learners' potential needs with greater precision and personalization. Scenarios requiring extensive user data—such as personalized instruction, smart classrooms, adaptive learning, and intelligent career planning—are becoming more prevalent.
China has 29 AI education companies with funding exceeding $100 million, with TAL Education leading at $3.8 billion. Chinese AI education startups typically secure over $10 million in funding, significantly higher than other regions, reflecting investor enthusiasm and government support for educational reform and informatization.
AI's integration into education has spawned numerous 'AI + Education' specialized institutions. Online education platforms are also adopting AI to enhance efficiency and expand business models. In 2020, AI-related online education services in China surpassed ¥30 billion in market size. Future Development Trends of AI in the Education Industry
With the advancement of big data and AI technologies, education will become more personalized. Through in-depth analysis of students' learning behaviors, abilities, and interests, AI can provide customized teaching solutions to meet individual needs. This personalized education model will help improve the quality and efficiency of education, ensuring every student receives the most suitable learning resources.
AI in education will increasingly integrate with other industries, such as smart homes, healthcare, and finance. This cross-industry integration will expand the application areas of AI in education, creating more innovative opportunities and business models. The future prospects for AI in education are vast, and it is expected to become a key direction for the education industry. However, challenges such as data privacy, technological reliability, and educational equity must also be addressed. Therefore, promoting the development of AI in education requires a comprehensive consideration of various factors to achieve sustainable growth.