AI in education set to reach nearly $90bn globally by 2032, study finds
Artificial intelligence in education is set to reach just shy of $90 billion globally ($88.2bn) by 2032, according to a new report by Allied Market Research.
A surge in demand for personalised education and adaptive learning, virtual assistants and smart tutoring and improvements in administrative efficiency are predicted to be key drivers of this growth.
According to the study – Artificial Intelligence in Education Market – in 2022 the market size was valued $2.5bn. Over the next nine years it is projected to increase at a compound annual growth rate (CARG) of 43.3%.
In terms of technology, machine learning and deep learning accounted for more than two-thirds of the market last year, and is expected retain its dominance by 2032 for its ability to support training and personalised learning.
AI is most prominent in higher education, the report suggested, making up more than two-fifths of the market in 2022. It is projected to be the largest end user of AI in education in just under a decade.
By region, North America is estimated to retain its dominance through to at least 2032.
Following the Covid-19 pandemic, education institutions, similarly to most markets, switched to online learning which increased the dependence on AI-driven resources. And the restrictions on in-person exams shifted responsibility onto AI to provide remote assessments.
The report also suggested there has been a surge in demand for online learning platforms since the pandemic, which encouraged offerings such as virtual coaching, individualised learning opportunities, and automated grading systems, all aided by AI.
However, issues around privacy, ethics, access and equity could hamper the market growth to “some extent”, the report highlighted.
There have long been concerns around the use of AI in education making homework too easy to complete, and undermining the educational institution, but these opinions are changing.
In May this year, New York lifted the ban it imposed on ChatGPT initially stating it made cheating easier.
Cited by NBC News, the chancellor of New York City Public Schools, David Banks, outlined the school system’s plans to engage with ChatGPT and similar tools.
He said the ban was put in place “due to potential misuse and concerns raised by educators in our schools.” However, he wrote, “the knee-jerk fear and risk overlooked the potential of generative AI to support students and teachers, as well as the reality that our students are participating in and will work in a world where understanding generative AI is crucial.”
According to a podcast episode by TED Tech, the hope is for AI to eventually give students an AI generated tutor for students and teachers to increase the quality of learning.
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