Introduction:

Artificial Intelligence in Education System Market was valued at US$ 4.2 billion in 2024 and is projected to grow at a CAGR of 37.3 % to reach US$ 100.1 billion by 2034.

Artificial Intelligence (AI) has become a transformative force in the quickly changing field of education, bringing in a new era of individualized and adaptive learning experiences. Artificial Intelligence (AI) technologies are altering traditional teaching methods as educational institutions throughout the world look for new ways to engage students and improve academic achievements. AI provides a wide range of solutions that meet the specific needs of each student, from automated grading systems and predictive analytics to personalized coaching and adaptive learning platforms. In addition to streamlining the learning process, this nexus of technology and education gives teachers the tools they need to differentiate instruction, spot knowledge gaps, and support student achievement. Use of AI in education has enormous potential. Diverse service providers are developing novel AI-related products or services that link to a range of educational platforms. The need for AI in education is also being driven by the growing popularity of online learning for skill development.

In addition, the COVID-19 pandemic has increased demand for AI in education, but the shortage of qualified workers is limiting industry expansion. As the number of AI-backed business applications rises, tech companies and universities collaborated to introduce new training formats in 2021 for talent in the AI area. This was done to better align the talent with the latest industry shifts and development trends.

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Artificial Intelligence in Education System Market Key Drivers:

• Personalized education system

One of the main forces behind AI in education is the need for individualized and adaptable learning. AI systems can assess massive volumes of data, including student performance, learning preferences, and learning styles, to deliver individualized learning experiences for individual students. Personalized learning allows students to focus on areas that require improvement, study at their own speed, and explore more complex concepts when they're ready. With the use of AI algorithms, educators may tailor the curriculum, pace, and mode of instruction to each student's specific requirements.

For instance, In June 2023, Khan Academy and Khan Labs developed a chatbot,” Khanmigo”, a new AI chatbot tutor to accelerate learning in a whole new way. "Khanmigo" tends to be  an extension of a teacher, offering personalized and immediate educational help for any student.

•  Virtual and Smart tutoring

Virtual assistants provide students with quick access to information and guidance by utilizing conversational AI and natural language processing. They can answer questions, elucidate concepts, and provide further resources. Integrating these virtual assistants into learning management systems, online resources, and even actual devices could facilitate learning, which is one of the main draws for students these days.

For instance, in May 2020, Jenzabar, Inc., a technology innovator for higher education, announced the launch of the Jenzabar Unity platform to improve operational efficiency and reduce technical barriers associated across campus with the help of iPaas integration.

• AI system is adaptive

Additionally, this promotes engagement, motivation, and a deeper understanding of the subject matter, all of which enhance learning outcomes. Adaptive education surpasses individualized learning by continuously adjusting and optimizing the learning process based on real-time data. Adaptive systems driven by artificial intelligence possess the ability to dynamically alter the level of difficulty and sequence of the information, offer prompt feedback, and furnish additional resources or assistance as required. Teachers may ensure that pupils are appropriately challenged and receive the assistance they require when they encounter difficulties by employing an adaptive approach.            

Restrains:

• High cost associated with Artificial Intelligence

Budgets will need to rise in order to pay for expenses as new technologies are developed. Schools and colleges will also need to think about the expense of software maintenance in addition to the installation of AI software. As a result, these institutions need substantial funds, investments, and application research before AI can be installed. Though the cost of creating and deploying AI solutions is costly, there is a continual increase in their availability, which prevents many public institutions and universities from adopting them and thus restrains the growth of Artificial Intelligence in Education System Market.

Artificial Intelligence in Education System Market is segmented based on Mode, Technology and Region.

Mode Insight

• Learner model: This dynamic and evolving segment focuses on personalized learning experience for each student. It plays a crucial role in adaptive learning systems and other personalized educational technologies. They offer the potential to address the diverse learning needs of students and improve educational outcomes by providing tailored and engaging learning experiences and thus dominate the segment for Artificial Intelligence in Education System Market
• Pedagogical model: This segment focuses on use of AI technologies to enhance pedagogy, which encompasses the methods and practices of teaching. It allows AI-powered virtual assistants assist educators in administrative tasks, lesson planning, and providing insights into student performance, allowing teachers to focus more on instructional activities.
• Domain model: This model serves as the foundation for designing and implementing AI applications that aim to support teaching and learning within that particular educational domain.

Technology Insights

• Machine Learning:  Teaching, learning, and research are all being profoundly altered by machine learning (ML), which is revolutionizing education. ML is being used by educators to identify struggling students early on and intervene to increase retention and achievement. The growth of this segment can be attributed to the growth of virtual support in high school and K-12 schools, driven by rising investments in AI technology by educational institutions. It contributes about 60% Artificial Intelligence in Education System Market in 2021 and tends to dominate the segment over the forecast period.
• Natural Language Processing: This segment specifically addresses the interplay between computers and human language, encompasses the creation of algorithms and computational models aimed at empowering machines to comprehend, interpret, and generate language to human communication.
• Virtual Personal Assistant: This segment constitutes understanding user input and provide relevant information or perform actions. It can answer questions, control smart home devices, and perform various tasks. Common examples include Siri, Google Assistant and Alexa.
• Querying Method: This segment tends to extract insights from this data, such as identifying trends, predicting student success, and recommending interventions. These methods play a crucial role in facilitating personalized learning, assessing student performance, and providing insights for educators.
• Context-Aware: Context-aware AI in education aims to create a more dynamic and responsive learning environment, where the educational experience is tailored to the unique characteristics and needs of each learner. It enhances engagement, personalization, and the overall effectiveness of educational interventions.

Regional Insights:

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

North America market is estimated to witness a significantly high revenue share over the forecast period, owing to technological advancements and implementation in education sector. Multiple universities adopting AI for R&D and various fields also tends to boost the Artificial Intelligence in Education System Market in the region.

Asia Pacific market is estimated to witness fastest revenue share owing to the increasing number of EdTech start-ups establishing their presence, increasing smartphone penetration rate across the region. Additionally, the rising demand for extracurricular support and customized tutoring has attracted massive investments in the sector.

Europe: Europe market estimated to witness a surge in Artificial Intelligence in Education System Market due to adoption of technological advancements, investment in education sector and  strict guidelines and regulations for use of AI in education boosts the targeted market.

Latin America: Latin America market estimated to witness a surge in Artificial Intelligence in Education System Market due to growing interest in application of AI in education, awareness regarding benefits of AI in education and schools along with governmental initiatives.

Middle East & Africa: Middle East & Africa market estimated to witness a surge in Artificial Intelligence in Education System Market due to significant digital transformations and advancement in education sector and use of AI to enhance learning experience. Focus on align educational systems with the skills needed in a rapidly changing job market using AI to boost the Artificial Intelligence in Education System Market in the region.

Report Scope:

Attribute	Details
Market Size 2024	US$ 2.2 billion
Projected Market Size 2034	US$ 67.6 billion
CAGR Growth Rate	40.8%
Base year for estimation	2023
Forecast period	2024 – 2034
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Market Segmentation	By Mode - Learner model, Pedagogical model, and Domain model By Technology - Natural Language Processing, Machine Learning, Virtual Personal Assistant, Querying Method, and Context-Aware
Regional scope	North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the Artificial Intelligence in Education System Market report based on Mode, Technology and Region:

Artificial Intelligence in Education System Market, By Mode Type:

• Learner model
• Pedagogical model
• Domain model

Artificial Intelligence in Education System Market, By Technology:

• Natural Language Processing
• Machine Learning
• Virtual Personal Assistant
• Querying Method
• Context-Aware

Artificial Intelligence in Education System Market, By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Artificial Intelligence in Education System Market includes, International Business Machines Corporation, Cognizant Technology Solutions Corp., Nuance Communications, Inc., Quantum Adaptive Learning, LLC., ALEKS Corporation Blackboard Inc., DreamBox Learning, Inc., Jenzabar Inc., Microsoft Corp., Pearson Education, Inc., and Knewton, Inc.

Recent Development:

• In June 2023, International Society for Technology in Education and ASCD, the nonprofit organization has worked with Google and Open AI (the team behind ChatGPT) to create its very own chatbot, “Stretch,” being designed specifically for K-12 educators. It informed by the same kind of large language models that power ChatGPT, persona bots, and other artificial intelligence tools. The Stretch prototype is currently being tested by a select group of people and is not yet available for public use.
• In June 2023, Byjus, Edtech Giant rolled out Byju’s Wiz, a suite of three artificial intelligence (AI) transformer models - BADRI, MathGPT, and TeacherGPT, to reshape learning, providing students with personalised and effective learning experiences. These models are set to be integrated across the entire product portfolio of Byju’s from Pre-K to Gray. The edtech firm offers programs for students across K-12, competitive exams, coding, and upskilling courses for professionals. 
• In August 2023, India's first AI school, Santhigiri Vidyabhavan, launched in Kerala utilizing AI technologies to enhance the learning experience. This school offers resources, guidance, and preparation for exams. It involves the integration of AI technologies, such as machine learning, natural language processing, and data analysis, into various aspects of education, including curriculum design, personalized learning, assessment, and student support.
• In August 2023, Value Aided Delta with Artificial Intelligence (VADAI), a pioneering educational technology company, launched groundbreaking initiative aimed at seamlessly integrating Artificial Intelligence into the Indian education system. For educators, VADAI offers an innovative approach to assigning and assessing homework, can deliver assignments allowing for more effective and targeted learning experiences through leverage AI capabilities.

• Cognizant Technology Solutions Corp.*
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies

• International Business Machines Corporation
• Nuance Communications, Inc.
• Quantum Adaptive Learning, LLC.
• ALEKS Corporation Blackboard Inc.
• DreamBox Learning
• Inc., Jenzabar Inc.
• Microsoft Corp.
• Pearson Education, Inc.
• Knewton, Inc.

“*” marked represents similar segmentation in other categories in the respective sect

1. Research Objective and Assumption
   • Preface
   • Research Objectives
   • Study Scope
   • Years Considered for the study
   • Assumptions
   • Abbreviations
2. Research Methodology
   • Research data
   • Primary Data
     • Primary Interviews
     • Primary Breakdown
     • Key data from Primary Sources
     • Key Thickness Insights
   • Secondary Data
     • Major Secondary Sources
     • Secondary Sources
   • Market Estimation
   • Top-Down Approach
     • Approach for estimating Market Share by Top-Down Analysis (Supply Side)
   • Bottom-Up Approach
     • Approach for estimating market share by Bottom-up Analysis (Demand Side)
   • Market Breakdown and Data Triangulation
   • Research Assumptions
3. Market Purview
   • Executive Summary
   • Key Findings—Global Outlook for medical carts Strategies
     • Key Questions this Study will Answer
     • Market Snippet, By Mode
     • Market Snippet, By Technology
     • Market Snippet, By Region
   • Opportunity Map Analysis
   • Executive Summary—3 Big Predictions
4. Market Dynamics, Regulations, and Trends Analysis
   • Market Dynamics
     • Drivers
     • Restrains
     • Market Opportunities
     • Market Trends
   • DR Impact Analysis
   • PEST Analysis
   • Porter’s Five Forces Analysis
   • Opportunity Orbit
   • Market Investment Feasibility Index
   • Macroeconomic Factor Analysis

Market Segmentation, By Mode, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Learner Model
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Pedagogical Model
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Domain Model
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Technology, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Natural Language Processing
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Machine Learning
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Virtual Personal Assistant
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Querying Method
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Context Aware
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Global Market, By Region, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Regional Trends
• North America
  • Market Size and Forecast (US$ Bn), By Mode, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Technology, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • U.S.
    • Canada
• Europe
  • Market Size and Forecast (US$ Bn), By Mode, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Technology, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • UK
    • France
    • Germany
    • Russia
    • Italy
    • Rest of Europe
• Asia Pacific
  • Market Size and Forecast (US$ Bn), By Mode, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Technology, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • India
    • Japan
    • South Korea
    • China
    • Rest of Asia Pacific

• Latin America
  • Market Size and Forecast (US$ Bn), By Mode, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Technology, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
• Brazil
• Mexico
• Rest of Latin America
• Middle East & Africa
  • Market Size and Forecast (US$ Bn), By Mode, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Technology, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
• GCC
• Israel
• South Africa
• Rest of Middle East

Competitive Landscape

• Heat Map Analysis
• Market Presence and Specificity Analysis

Company Profiles

• International Business Machines Corporation
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Cognizant Technology Solutions Corp
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Nuance Communications, Inc.
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies

• Quantum Adaptive Learning, LLC
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• ALEKS Corporation Blackboard Inc
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• DreamBox Learning, Inc  
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Jenzabar Inc.
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Microsoft Corp   
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Pearson Education, Inc.   
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Knewton, Inc.  
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies

The Last Word

• Future Impact
• About Us
• Contact