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Deep Dive into Investment Verticals: Education and the Use of Artificial Intelligence.

In response to the wider debate on how Artificial Intelligence systems such as ChatGPT should be used in classrooms, UCLA sent out an announcement declaring that the use of AI tools will be treated as “equivalent to getting assistance from a person.” As we are entering a period that is becoming defined by the rapid growth and implementation of AI tools it's increasingly important to consider the role that these tools can play in our educational systems. Decisions on how to respond to artificial intelligence will need to be made all around the world, and it is important to consider the new emerging investment market that will come from this.

AI in Education: A Promising Market

In 2021, a report done by Microsoft found that 99.4% of educators believed AI would be instrumental in the next three years, with 15% describing it as a game-changer. Additionally, 92% of educators reported experimenting with AI in their classrooms. It is interesting to note that these predictions were done before the recent explosion in interest due to ChatGPT, and are therefore likely to have changed significantly since then.

The AI in the education sector market accounted for $1.55 billion in 2020 and is expected to reach $25.63 billion in 2028, achieving a compound annual growth rate of 43.8%. This estimated growth can be attributed to the increasing adoption of AI-driven tools like ChatGPT, which enhance teacher-student collaboration and streamline processes such as lesson plan creation, individualized student support, and writing aid. This widespread enthusiasm for AI in education attracted a record $8.3 billion in the general EDTech market through venture capital investment in the first three quarters of 2020 alone.

In What Ways Can Artificial Intelligence Shape the Field?

One significant advantage of using AI tools in education is the ability of educators to optimize the creation of lesson plans. Teachers can use AI's knowledge base and rapid processing capabilities to develop engaging, personalized, and effective lesson plans tailored to the needs of their students. This not only saves time but also ensures that the curriculum is up-to-date and relevant for each individual student.

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Similarly, for many students, the writing process can be difficult to start. AI tools like ChatGPT can act as brainstorming partners, offering suggestions and ideas while maintaining a natural, conversational tone (something which has been taken great advantage of in the writing of this blog post). Students can use AI-generated content as a starting point or inspiration, helping them overcome writer's block and develop essays from there.

AI resources can also be used to provide more targeted support for students, catering to their unique learning styles and preferences. With tools such as Carnegie Learning, educators can create personalized resources, such as study guides and supplementary materials, that address each student's strengths and weaknesses. This customized approach fosters a deeper understanding of complex subjects and helps students reach their full potential. Companies such as Squirrel AI, which is based in China, use these tools to provide 1-on-1 tutoring, which can potentially upend the online tutoring market. One may note that resources like this have already existed to some extent in the form of Khan Academy, but artificial intelligence can build on this in unexpected and more profound ways.

One big benefit of AI technology is that it can be used to drive down the cost of assessment while maintaining academic integrity. By incorporating AI-driven tools and in-person testing, educational institutions can ensure that students are assessed fairly and that the knowledge gained is a true reflection of their efforts. Coursera and Udemy are already using AI to score essays in their courses. Tests may also end up being more personalized to students as AI could rephrase questions in the context of their interests. Once more testing has been conducted to remove biases, schools around the world might want to take advantage of this resource to save the time of teachers.

Looking Toward the Future

The integration of AI in classrooms has the potential to revolutionize the educational landscape. The promising investment market for AI in education indicates a growing interest in these technologies, with numerous innovative companies leading the charge. By adopting AI-assisted learning and taking advantage of its time-saving nature, we can prepare the next generation of students for a future driven by artificial intelligence whilst making the most out of everyone’s education.

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No matter what, we can conclude that artificial intelligence will have a significant impact on education, and its influence should be considered when making investment decisions.

Have a comment? Write to Jakob Jensen at

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