Reimagining Businesses with AI

CHAPTER 4Transforming Education with AI

“Education is the premise of progress.”

—Kofi Annan, former UN Secretary General

INTRODUCTION

Similar to Healthcare, Education is a very important sector of the economy. While its relative size is smaller, its impact on the future of humanity is equally profound. Globally, the education industry is presently over $6 trillion as per reports from Citi, Goldman Sachs, IBIS Capital, and other market analysis. By 2030, this education industry is expected to be over $10 trillion globally.⁽¹⁾ The growth rate of this market is in mid-single digits and the core of the formal education systems does not change very rapidly in short periods. However, technology-driven learning segments of the industry are growing much faster. HolonIQ's Smart Estimate™ predicts that education technology expenditure fueled by AI and other digital technologies will cross $340 billion by 2025, which is just around the corner. The education industry is highly fragmented with lots of players and many microsegments. Technology is rapidly blurring the lines between these microsegments and morphing the capabilities of the players.

Education has a deep impact on GDP growth. As per data available from The World Bank's World Development Indicators (WDI), every dollar a government spends on education, GDP grows on average by $20 over time. At a macro level, growth in education spend is equally matched by GDP growth. There are many pieces of evidence to suggest that higher ...