AI can revolutionize education for the better
As students return to classrooms and lecture halls for the new year, it is remarkable to consider how little education has evolved in recent decades. Laptops and interactive whiteboards hardly bring about significant change. Many parents, who are amazed by how their children shop or socialize, remain unfazed by the way they are taught. The education sector continues to lag behind in terms of digital innovation: American schools and universities allocate only around 2% and 5% of their budgets, respectively, to technology, compared to the average American company’s 8%. Tech enthusiasts have long desired a larger portion of the $6 trillion spent globally on education each year.
When the pandemic forced schools and universities to close, the opportunity for a digital revolution seemed imminent. Students turned to online learning platforms to fill the gaps left by limited Zoom classes. The market value of Chegg, an online tutoring provider, surged from $5 billion at the beginning of 2020 to $12 billion a year later. Byju’s, an Indian competitor, reached a private valuation of $22 billion in March 2022 as it acquired other providers worldwide. According to Crunchbase, a data provider, global venture capital investment in education-related startups increased from $7 billion in 2019 to $20 billion in 2021.
However, once the pandemic was under control, classes resumed largely unchanged. By the end of 2022, Chegg’s market value had dropped back to $3 billion. Investment firms such as BlackRock and Prosus began to devalue their stakes in Byju’s as the company faced mounting losses. “In hindsight, we grew too quickly,” admits Divya Gokulnath, the company’s co-founder.
2024-01-11 08:57:26
Post from www.economist.com
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