The future of education technology (edtech) aggregators is becoming increasingly uncertain due to various factors. Student caps, increased regulation, anti-immigration rhetoric, and whistleblowers in Australia, Canada, and the United Kingdom are making it challenging for aggregators to maintain profitability. Aggregators operate on different models, such as membership clubs for agents and universities or taking a percentage of the agent's commission. However, the tightening regulations and scrutiny of agents and their sub-agents are affecting these models. Aggregators are also facing difficulties due to restrictions on private sector colleges and public-private partnerships in some countries. As a result, aggregators may need to explore alternative strategies, such as becoming full-service providers or venturing into fintech. Shifting their market focus to Europe, the Middle East, North Africa, and Asia is another potential option. However, one of the long-term threats to aggregators is the rise of artificial intelligence (AI) in the education sector. AI has the potential to revolutionize the student exploration and selection process, potentially rendering intermediaries like aggregators obsolete. Some aggregators are already experiencing staff reductions and client losses due to increased scrutiny and regulation. Universities must adapt to the changing landscape, while aggregators face potential risks [49bf6b8c].
Mary Meeker, the 'Queen of the Internet', has published her latest report on artificial intelligence (AI) and universities. She states that AI will shape higher education in new and unforeseen ways. Meeker emphasizes that the university of the future will not look like the university of today and that AI can be a market share tailwind or a headwind for universities. She highlights the need for collaboration between universities and tech companies, as well as a shift in the foundational model of higher education. Meeker suggests that teachers could become more like coaches guiding students, and students may conceptualize their return on investment differently. She also mentions the importance of understanding media and monetization shifts for Gen Z and the need for American universities to revitalize their missions and prepare students for the workforce. Meeker concludes by stating that actions taken in the next five years will be consequential and that higher education should take a leadership role in collaboration with industry and government. The shift towards robot tutors and a different college experience may be coming sooner than expected [2c8b2046].
According to a recent article on Economica, the AI in Education market is projected to experience significant growth by 2024. The article highlights key insights from a comprehensive analysis of the market, including the strengths and weaknesses of key vendors such as Google, IBM, and Pearson. It discusses past sales figures and predicts sales trends up to 2031. The report also examines notable trends in product categorization, company establishment, revenue streams, and market share dynamics. The AI in Education market is segmented by type, including Deep Learning and Machine Learning, and Natural Language Processing. It also identifies leading players in the market and evaluates their business strategies. The article forecasts the market size and growth projections, with the US and China showing promising growth prospects. The rise of AI in education presents both opportunities and challenges for higher education aggregators and universities. While AI has the potential to revolutionize the student exploration and selection process, it could also render intermediaries like aggregators obsolete. Universities and aggregators must adapt to the changing landscape and explore alternative strategies to remain relevant in the AI-driven education sector [bf0c558b].