The Future of EdTech with Artificial Intelligence Development

The recent innovations in AI technology, such as GPT-4 and Bard, have certainly started revolutions in sectors, such as healthcare, law, and business; but for many, AI gained its mainstream recognition in education. “Why write some pedantic essay on Plato’s Symposium for my entry-level philosophy seminar, when ChatGPT can do it for me” says the common college student, trying to manage a busy semester’s workload. But perhaps, people should not look at this software as another shortcut tool, but as an expansive learning aid designed to assist both students and teachers. One that will not dismantle the foundational human dynamic of education, but address the many shortcomings within academia. This article will discuss the various issues not just in education, but the learning process as a whole and support how the technological capabilities of artificial intelligence can effectively address these problems. Specifically, it will display the many companies in the EdTech landscape utilizing such technology and project the sector’s performance for the future.

Today, Large Language Models (LLMs) like Google’s BERT and Meta’s Llama perfected the abilities of natural language processors (NLPs) while also introducing new features, such as generating and classifying text, answering questions in a conversational manner, translating text from other languages, and detecting mood, thus working as a more operational, effective program than its predecessor. Thousands of companies within the educational sector utilize LLMs to make the learning process easier. Whether it be learning a new language, understanding mathematical concepts, or optimizing writing, AI seems to show much promise in performing the functions of a standard teacher. But of course, what sense would it make to supplant technology into a field already occupied by practitioners, especially when education is such a personal, human dynamic? The answer to this question lies in the fact that students and teachers today are suffering from the many shortcomings within the education system. And while a full robot takeover would certainly be counter-intuitive, perhaps a hybrid model of teachers and AI working in synergy, would be the solution to this issue.

Current Shortcomings in Education

U.S. Public school leaders estimated that about half of their students began the 2022-23 year behind grade level in at least one academic subject compared to 50% last year. The outbreak of the Coronavirus in 2020 had catastrophic consequences for the student learning process, as educators quickly scrambled to adapt to the new virtual model. And now, even with many Covid counter measures lifted from academia, students are still struggling in the classroom. Peggy Carr, the commissioner of the National Center for Education Statistics states, “Many students were behind grade level at the start of the current academic year, including in core academic subjects like English and mathematics”. Perhaps, this slow recovery suggests that a lacking success rate in the U.S. is not the cause of Covid’s lasting repercussions, but problems inherent in the education system. After all, U.S. education metrics have always shown a lack of performance as compared to other nations.

In addition to this report on reading ability, recent data supports poor performance in other subjects as well. In 2018, the Program for International Student Assessment examined 15 year old students across 79 countries, testing both science and math performance. And, despite the U.S. spending around $14,891 per public school student per year, it placed 11th in science and 30th in math. Certainly, this alarming data may be attributed to the U.S. investing less in human capital, compared to other nations. But before discussing funding, it is important to look specifically at the issues that educators identify as contributing factors for this poor performance.

1. Teacher Shortage: Both public and private school teachers report that the profession has reached a crisis point. Poor management within schools combined by insufficient salary pay are the cause of high burnout rates. The situation has even become so severe that 55% of teachers plan to leave the field earlier than they had planned, according to a survey conducted by the National Education Association.
2. Tutoring Programs: Educators can only work within the confines of their allotted class time to teach students material. Assigning instructional work after class under a “reverse classroom” model can help the class work through the curriculum further, however this solution still offers students little interaction should they have further confusion on the subject. Therefore, tutoring and after school aid is essential for the learning process. The University of Southern California Center for Economic and Social Research’s survey of American households reported that only 2% of students are receiving high quality tutoring services.
3. Engagement: Inefficient teaching methods, intimidation of difficult material and daunting workloads, and a general lack of interest all work together to make students neglect their academics. Education requires a personalized approach for the individual student– naturally, different students will digest knowledge in varied ways and stages. But an increasing student to teacher ratio makes such personalized learning difficult.

Where EdTech Comes Into Play

Fortunately, the emergence of companies within the education sector, offering a variety of services and programs, would collectively work to correct not just these issues listed, but a wide array of hindrances to any learning process. Despite the incredible promise that these companies show, Venture Capital investments in this sector have dipped heavily from its high ($20B) in 2021 and are projected to come up short again.

Before jumping to the conclusion that investors have cold feet around EdTech, comparisons to venture funding in other business sectors suggest that this decline may be a function of general macroeconomic trends. For example, In H1 2023, U.S. digital health startups raised $6.1B across 244 deals, Compared to Q1 2023 ($3.5B over 131 deals), Q2 registered only $2.5B in funding across 113 deals—joining Q3 and Q4 2022 as recent sub-$3B quarters. Should H2 2023 funding continue at this rate, digital health is on track for the lowest funding year since 2019. Even with massive investments in AI and technology, global funding in Q1 2023 reached $76B, a 53% decline from Q1 2022 ($162B). 

With this being said, though several sectors are facing similar declines by proportion of previous years, the data still shows where EdTech stands in comparison to other markets. For example, Q1 2023 similarly saw a massive drop in funding for Climate Tech companies, and yet their highest and lowest years far surpass that of EdTech:

Despite these low predictions and comparatively smaller funding to other sectors, investors have every reason to be bullish about EdTech in 2023. The ever-increasing presence of AI is one of the many reasons for this optimism. And with more companies addressing the most pressing problems in learning combined with the incredible traction that LLMs have received lately, the future looks bright for EdTech.

Functions of AI in Education

With the technical sophistication and versatile capabilities of AI, it's likely that the expansion of EdTech companies may be the solution to the current problems in education. The following is not a completely exhaustive list of the impactful benefits that AI companies will provide within education, but they are certainly the most prominent applications that companies are aiming to provide: Personalized Learning, Automated Grading, Course Planning, Exam Generation, Administrative Aid, Cheating/Plagiarism Detection

Personalized Learning

Teachers have the tremendously difficult task of meeting students at different stages of their understanding. And, it's no radical idea to say that some kids learn by different means. Established education companies like McGraw Hill and Duolingo have recently started to acquire and implement AI to address learning at the individual level. Duolingo has recently partnered with OpenAI to offer the features of GPT-4 into its program. This virtual language learning tutor records data from its students using machine learning algorithms in order to understand how people learn and how the app could be used to improve the way they absorb new information. As such, the application constantly reevaluates itself around what's beneficial for the user as opposed to the traditional broad classroom model. Likewise, Riiid has recently used AI to optimize the test taking process. The preparation platform R.test analyzes students’ strengths and weaknesses and responds with customized lesson plans to raise SAT and ACT scores.

Links: ALEKS, Riiid, r.test, Funding: Dreambox Funding: KidaptiveCognii Funding: Amira Funding Century Tech Funding DuolingoBYJU’S three new AI models Funding: Chegg CheggMate,

Automated Grading

In addition to engagement, teacher burnout has had a negative effect in the field leading to the recent increase in shortages. On top of the many responsibilities instructors perform on a daily basis, grading could very well be the most arduous. However, LLMs have the capability to analyze student work and provide accurate feedback. Of course, all grading cannot solely be delegated to the machines, but the aid of AI will certainly make the task more manageable. The plagiarism detection company Turnitin acquired Gradescope, a company which aims to accomplish these exact tasks. Gradescope’s AI has the ability to read student handwriting and math notation and evaluate it as a teacher would. Meanwhile, the lesser-known, but increasingly prevalent Cognii similarly guides students through critical thinking exercises, analyzes the answers, and provides feedback and automated grading. 

Links: Cognii Funding Learneo LanguageTool Funding Gradescope Funding Coursera new AI-powered functions

Course Planning

Like grading, the work that goes into organizing a syllabus and meeting curriculum deadlines is just another function that EdTech companies provide to relieve the pressure from teachers. Oftentimes, certain modules within a course need to be readjusted for the sake of time. In response, teachers are left with decisions around what lessons can be shortened or expunged. But considering machine learning can efficiently analyze student strengths and weaknesses, the units which may be expedited more seamlessly become clearer. One of the more familiar names in EdTech, Knewton launched Alta, a complete courseware solution offering adaptive courses in biology, chemistry, calculus, math, physics, and psychology. “Alta is the first personalized learning system I’ve used that truly delivers on the promise of adaptive technology. Alta continually measures students’ proficiency levels and provides feedback designed to help them achieve mastery” says Andrew Moore, assistant professor of mathematics at National Louis University. Furthermore, Querium’s AI program Stepwise offers a similar adaptive course service for STEM students. In addition to this, the Stepwise math course and tutoring service is free for use by public school students, teachers, and parents.

Links: Knewton Funding Querium Funding Coursera new AI-powered functions Udemy Funding

Exam Generation

Teachers have a responsibility to examine students on the material that they deem as essential to the particular subject. And much like the added work that goes into grading exams or papers, teachers are burdened by generating assessments that can properly reflect the retention and understanding of the students. The assistance of artificial intelligence can resolve this issue, by testing the most essential ideas, thus accurately gauging the quality of the student’s understanding. Once again, Cognii and Duolingo offer excellent features that generate effective assessments for students. Likewise, a new entrant, Fetchy, directly aids the tasks of educators with test and essay design as a core component.

Links: Cognii Funding Fetchy Duolingo CheggMate

Administrative Aid

The duties of an educator do not end simply at teaching; rather, teachers, principals, and superintendents have the responsibility of structuring an organized, efficient, and safe environment for kids. Normally, this service is designated to the administrative roles within a school; but with the current teacher shortage and high turnover rate of employment, many instructors find themselves taking on these tasks in addition to grading, organizing class, and delivering lectures. Fortunately, many EdTech companies design their products to address this issue. GoGuardian implements AI in their cloud-based management platform to organize tasks, monitor student activity, and filter content across the school network. This content filtering feature lightens the burden on the school by reducing the additional time and money spent on physical IT maintenance. In another case, Applyboard uses its AI software to help students find the right study abroad program for their preferences. Once a difficult process for guidance counselors and advisors to meet with students has become expedited through this advanced technology. 

Links: Fetchy GoGuardian Funding Applyboard Funding

Plagiarism/Cheating Detection

Ever since students have experienced more control over their learning experience with technology, cheating and plagiarism must be monitored more than ever now to maintain the integrity of the institution. Ironically, while AI is commonly associated as the cause of this issue, it should also be viewed as an effective solution. EdTech giants, like Grammarly and the aforementioned Turnitin, both utilize the analysis provided by AI to detect cheating in writing assignments. Grammarly has recently expanded its generative AI system to compare a student’s work with all other forms of recorded data to authenticate it as the student's original work.

Links: Grammarly Funding Turnitin

Risks Associated with AI Implementation

Despite the exciting capabilities of artificial intelligence and all of these beneficial applications, educators and investors alike have their reasons to remain hesitant about EdTech companies and their technology. As mentioned, the student to teacher dynamic has found its success in being a very personal and human interaction. And no amount of data and personal analysis from a machine will ever be able to replicate the way one person reaches out to another. Likewise, the programs and services offered by EdTech companies may turn away the heads of already underfunded schools or impoverished students with their exorbitant cost. Finally, the implementation of any technology on a school’s network runs a massive risk of privacy breaches. EdTech experts have cautioned that such technology must be used with caution as many companies use extensive tracking technology and share personal student information with third parties. Finally, though AI has been shown to be a protective agent against student cheating, it can also very likely be the problem. With their extensive abilities, AI chatbots could easily produce an assignment indiscernible from that of an average student. The additional challenge to detect this new form of cheating adds an additional job on to educators. For this reason, New York City's Department of Education blocked ChatGPT from devices and networks owned by schools across the state with other cities planning to follow. Furthermore, many chatbots do not guarantee complete accuracy in their responses, resulting further to the detriment of students.

And yet, the general consensus of teachers, students, and parents, while concerned about these issues, is not particularly one-sided. Rather, most schools have had an ambivalent reaction to AI capabilities, reflecting a tone of both excitement and caution. “If ChatGPT can provide a teacher with a lesson plan for the day or generate an essay prompt, then great. It gives teachers more opportunity to refine our teaching approach and challenge students appropriate to their unique needs” says Maureen Lamb, Dean of Educational Technology and Innovative Pedagogy and a member of the Latin faculty at The Ethel Walker School.

Final Thoughts

Technological innovations straight out of an Asimov short story are here whether people expected it or not. But it is not necessarily accurate to consider this a revolution that will overturn employment completely. The development of AI by EdTech companies comes with its risks and its opportunities. In its current state, the education system, both in the U.S. and the world has its many flaws– but potential solutions are here. While VC Funding for EdTech is comparatively lower to other sectors and has faced a tough recovery this year, a permanent stagnation and decline seems incredibly unlikely in this market. Many long standing companies have already hopped on the bandwagon of machine learning. Likewise, many smaller startups have followed and have benefited heavily from it. Artificial Intelligence is no longer a term spoken of in science fiction, but a reality seen in practical use today. And, so long as there are significant problems to which it can solve, there can be no doubt that its implementation and usage will grow substantially.

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