Europe’s highest-valued EdTech company outlines its AI strategy, while forecasting global market size of AI in education to reach $10-20 BN
Global market size of AI in education estimated to reach $10-20 BN by 2027
GoStudent to further integrate AI into its business model, boosting revenue by 40% in the next five years, capturing up to 10% of the market potential
AI will enhance the student and tutor experience, and make tutoring more accessible, affordable and engaging
GoStudent, Europe’s highest-valued EdTech company and one of the world’s leading tutoring providers, has today shared its strategic vision for integrating AI into its business. Having calculated that global market size of AI in education could reach $10-20 billion by 2027, the EdTech unicorn plans to harness AI to improve its personalised tutoring offering, with this integration set to increase its revenue by 40% in the next five years, enabling it to capture up to 10% of the market potential.
GoStudent is the first company to forecast the full global potential market size of AI in Education, doing so by utilising the latest prominent data sources on the topic. With some EdTechs reporting an almost 50% decrease in share value, attributing its decline in user growth to ChatGPT, GoStudent is continuing to thrive, having seen 60% user acquisition in Q1 2023, vs. Q1 2022, viewing AI as fundamental to its future growth.
“AI has the potential to add significant value in terms of both revenue opportunity and improving the learning experience”, says GoStudent CEO and Co-Founder, Felix Ohswald. “To harness this technology in the right way, EdTech companies need to identify how AI can be used to bolster their existing USPs. At GoStudent, we offer 1:1, human to human, tutoring. Because of this personal connection, students stay with us throughout their learning journey. In the first instance, we will use AI to further refine the student and tutor experience – creating increasingly tailored lessons and learning environments and automating processes, meaning tutors can spend more time with students.”
GoStudent’s mission is to make quality education accessible and affordable. While human tutoring remains at its core, the company acknowledges that an AI tutor could be significantly more cost-effective. In the long-term future, GoStudent aims to develop the ultimate AI tutor, trained on best-practice gained from the learnings shared by the more than 11 million families the GoStudent group supports worldwide. This will ensure the virtual tutor would be built to exceptionally high standards, but available at a far lower price point, serving a broader range of families and opening up a wider market potential.
More immediately, the company is investing heavily in building AI-driven tools that will add significant value to the students and tutors that use its platform, and make GoStudent the go-to choice for tutoring.
For tutors, the goal is to empower them with AI to become the first generation of ‘super tutors’. This would include using AI to build a lesson plan generator, trained on the local curriculum, saving each tutor an average of 15 minutes per lesson: a gargantuan time save considering the hundreds of thousands of lessons taking place on the GoStudent platform each month. The company also plans to introduce a ‘tutor support bot’ which would offer refresher facts to tutors, empowering them to keep upskilling.
For students, not only will they benefit from their very own ‘super tutor’, matched to them based on learning style, personality and subject area, GoStudent plans to offer AI-driven content-based learning within its platform, meaning students can study in between lessons, engaging with content tailored to their specific needs.
“The recent decline in share price for some EdTech companies has understandably caused a stir” says Nenad Marovac Founder and Managing Partner at DN Capital. “What we see as critical is that companies don’t lose sight of what makes them unique to their space. With GoStudent, it is clear that AI can only bolster its value. Students don’t come to GoStudent to learn facts, they come to find their perfect education partner, and it is for this reason that they will retain their value. Their work with AI will only serve to improve their offering.”