Global development of AI-based education

The Report

“Global development of AI-based education” is compiled by Deloitte Education Sector and Deloitte Research. This paper deeply studies the application of Artificial intelligence(AI) technology in education and the changes it will bring to education ecosystem, analyzes the investment trend of AI-based education, and looks forward to the formation of new education system in the future. In this context, China's education is moving towards the era of intelligence, ushering in a new round of development opportunities.

Viewpoints / key findings

I. Introduction to AI-based education

• AI is accelerating the integration of information technology into education. AI-based education in the future will be driven by the use of data, intensive technology application, integrated innovation, and service optimization.
• AI-based education has enhanced education quality, efficiency and equity, creating value for students, teachers and regional education systems.

II. Analysis of AI-based education systems

• Disruptive application of education includes intelligent adaptive education, innovative virtual learning space, data analysis and data privacy. Among these, intelligent adaptive teaching system provides timely and personalized instruction or feedback for each learner, and intelligent adaptive learning provides each learner with personalized plans covering learning progress and teaching method.
• Intelligent adaptive education products fall broadly into three categories by application scenario: language learning scenario, teaching aid scenario and intelligent adaptive platform.
• It is excepted that the intelligent adaptive education platforms will develop into refined iteration, human-machine interaction teaching model, and new paradigm of parallel education in the future.

III. AI is transforming education industry

• AI technology has been put into commercial application, bringing varying impact to different parties. In this context, education giants are investing in or independently developing smart education products. Start-ups are trying to eliminate the pain points of education industry, provide more targeted solutions, expand to other market segments and increase user coverage.

IV. Trends of investment in AI-based education

• Players in the technology-based education segment including VIPKID and Squirrel AI are quickly staking out their turf. The AI-enabled education sector is bringing about a revolution in the traditional education system.
• China’s unique advantages in application and implementation make it one of the most popular regions for investment in AI-based education globally. AI-based education companies located in developed tier-one municipalities/cities such as Beijing, Shanghai and Guangzhou have obtained the most investment and is reaching out to tier-two and tier-three cities.
• Currently, the combination of AI and education is predominant in the four segments of K12, education informationization, quality education, and foreign language training.
• The investment of leading players in AI technology is inclining towards more mature start-up projects, VC/PE investment became more rational with a focus on projects with strong technology and implementation. And education giants also accelerate their plans in the white space, bringing about the era of extensive investment and M&As of education giants in the "AI + education" sector.

V. Future challenges, prospect and thinking of AI-based education

• With learning experience being reshaped by AI and the gradual formation of a new education system, the development of China's education sector is approaching towards an intelligent era. Nevertheless, AI-based education is still faced with various issues including insufficient data and data can not be effectively assessed in the course of its development. To better implement AI-based education, educators and decision-makers have to understand AI in a broader learning context.