Survey on the Development Status of AI Education Industry and Analysis of Industry Investment and Financing
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Currently, the market penetration rate of educational terminal devices remains low. Since the implementation of the 'Double Reduction' policy, there has been a lack of supply for students' extracurricular learning needs, and the exit of exam-oriented tutoring classes has created new market demand for learning devices. AI education refers to a comprehensive intelligent education system that incorporates artificial intelligence at multiple levels, covering the introduction of AI-related courses in primary and secondary schools. 'AI + Education' refers to the deep integration and development of artificial intelligence and education, using AI applications based on educational scenarios as a pathway to promote educational equity, improve educational quality, and achieve personalized education. Specifically, 'AI + Education' is a collection of technologies, models, and practices of innovative AI applications in the field of education, which can be divided into 'Computational Intelligence + Education,' 'Perceptual Intelligence + Education,' and 'Cognitive Intelligence + Education.' In other words, AI + Education is evolving from 'storage and calculation' to 'listening, speaking, seeing, and recognizing,' ultimately achieving 'understanding and thinking.'
Many regions have begun exploring AI education during compulsory education, but the foundations and conditions vary. Challenges include a lack of smart equipment support and top-level design involving local educational administrative and research departments. Through collaborative efforts from 'government, industry, academia, research, and application,' AI education is expected to develop in a more systematic and scientific direction.
Survey and Analysis of the Development Status of the AI Education Industry
According to Stanford University's 'AI Index Report 2021' and data from Microsoft Academic Graph, global AI-related journal publications increased approximately 3.5 times from 2000 to 2020. Geographically, China has led in the share of AI journal publications since 2017, accounting for 18.0% in 2020, followed by the U.S. (12.3%) and the EU (8.6%). In terms of citation proportions, China (20.7%) surpassed the U.S. (19.8%) for the first time in 2020.
From the perspective of educational activities, current scenarios can be divided into teaching, learning, management, and assessment. For 'teaching' and 'management,' the main actors are educators. Teaching involves tasks like lesson planning, instruction, and grading, with a core need to reduce workload and achieve precision. Management includes tasks like staff recruitment, supervision, and scheduling, with a focus on efficiency and scientific administration. For 'learning' and 'assessment,' the main actors are students. Learning involves activities like studying and homework, with a core need for adaptive, personalized learning. Assessment focuses on large-scale standardized testing, where automation is key to improving efficiency while maintaining accuracy.
As of June 30, 2021, there were 60 AI education companies in China, the U.S., and India with funding exceeding $100 million. European AI education companies generally received smaller funding, while Chinese companies attracted more capital. India has seen the rise of several large AI education firms in recent years.
AI applications in education can be simplified as follows: a sensing or data collection device gathers information, which is processed and analyzed in a central data hub. Decisions are then made by humans or AI based on this information. Current applications do not involve complete data collection. Mainstream educational scenarios include teaching, management, and evaluation.
Scholars and companies differ in how they categorize AI applications in education. Currently, mature products in educational informatization include intelligent grading, question banks, adaptive learning, and leveled reading. AI primarily serves as a teaching aid but may eventually cover more core teaching functions.
In China, AI education companies are mostly in Series C, D, or E funding rounds (46%), with 23% in Series F or later. Nearly 70% of AI education firms in China have undergone at least three funding rounds, indicating a mature industry dominated by growing and established companies. About 31% are in Series A or B, reflecting intense competition and continued entrepreneurial interest. There are 29 Chinese AI education companies with funding exceeding $100 million, with TAL Education Group leading at $3.8 billion.
Predictions for Future Trends in the AI Education Industry
With continuous exploration by various industry players in the AI+education sector, future industry divisions will become more defined, leading to integrated innovation through competition. Artificial intelligence technology is transforming the traditional goals of education, shifting from 'score-oriented' to 'student-oriented' teaching, making personalized education possible. Adaptive learning provides tailored solutions based on students' specific situations and individual needs. AI, acting as the primary instructor, revolutionizes the entire teaching process, freeing up teacher resources and enabling data-driven decision-making based on educational big data. This not only achieves precise teaching but also enhances learning speed and flexibility. Additionally, AI facilitates seamless information flow within campuses and cross-regional resource sharing, breaking down barriers in information and resource circulation.