Software solutions have been a part of the education process for the past couple of decades. They help manage schedules, automate administrative tasks, build courses, and improve other parts of the learning process at enterprises and educational institutions of all scopes and specialties. The University of Michigan, Clemson University, and Columbia University use these solutions.
Artificial intelligence made ed-tech products more powerful than ever. It contributed to the increasing numbers of startups that find innovative ways of improving and streamlining the learning process. In this article, we take a close look at the current state of the ed-tech market and the top edtech startups that will have the most significant impact on the field in 2024.
Table Of Contents:
- Top X Rising AI Edtech Startups To Watch In 2024
- Ed Tech Solution Market In 2024
- How Is AI Used In EdTech?
- Top Edtech Startups To Watch This Year
- Conclusion
Ed Tech Solution Market In 2024
The market for software educational products has shown study growth since 2021. At that time, its value was at $10,85 billion; by 2025, this figure can reach $11,6 billion. The recent Statista report shows that the market shows a yearly growth of nearly $200 million. The numbers are high because everything from online classroom management products to language learning apps falls under edtech software.
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Microsoft, Oracle, and SAP hold sizable market shares besides strictly learning-oriented businesses like Moodle, Blackboard, and Duolingo. An analysis published by Edtech Evidence Exchange in 2020 estimated that at various levels, government institutions in the US spend between $26 billion and $41 billion annually on working with edtech startups and established developers.
AI is becoming an essential part of edtech software. Gitnux experts claim that between 2021 and 2024, the adoption of this technology in the industry had a CAGR of 47%. This shows that this technology has become a vital part of edtech software.
How Is AI Used In EdTech?
Artificial intelligence offers a more efficient learning process for students and educators. Products built with this technology help track academic progress, create study materials, and provide personalized learning. Established and newly founded AI edtech startups have found several ways of using this technology in an educational setting:
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- Adaptive learning. AI helps solutions create learning paths based on the student’s knowledge and needs. They allow people to study at their own pace, offer additional resources, and adjust the difficulty levels of assignments.
- Content creation. Generative AI tech provides educational institutions with the means to produce various types of content. Companies involved with edtech develop solutions that turn text into video using virtual avatars or generate tailored study guides.
- Grading automation. Some edtech startups specialize in AI-based products that automate the grading process. They analyze oral and written responses on different assignments, providing timely feedback and more free time for educators.
- Improved accessibility. With AI technology, programmers to create text-to-speech and speech-to-text solutions. They make education accessible for students with hearing or sight disabilities.
- Intelligent tutoring. Developers utilize AI to create intelligent educational platforms that mimic the behavior of professional tutors. Such products explain subjects and offer real-time help, improving the learning experience.
- Predictive analysis. Educational institutions use AI solutions specializing in academic progress analysis. These products provide insights into possible education outcomes, the effectiveness of teaching methods, and individual learning patterns.
- Student assistance. Companies and startups in edtech use AI to create guidance solutions through chatbots and virtual assistants. These products provide information about the rules of life on campus, daily curriculum, events, mental health support, and other information learners may find helpful.
Top Edtech Startups To Watch This Year
Today, over 65,000 companies in the edtech software industry compete for their rightful place in the sun. Artificial intelligence is vital to the educational solutions business, with over 67% of edtech unicorns founded in recent years using this technology in their products and services. These companies will make the most impact in 2024.
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This educational startup has been around since 2006 to make math education more enjoyable and personalized. Its solutions rely on artificial intelligence to offer an adjustable learning environment for children aged 5 to 14. Dreambox Learning products establish learning styles, track progress, and see how well students tackle problems.
With this approach, teachers better understand which individuals could use some help with their math comprehension. The company solutions also conduct predictive analysis to show how well students will understand math by the end of the year. Today, schools in the US and Canada actively use Dreambox Learning. The AI edtech startup also gathered $175,6 million in funding.
The US startup offers comprehensive learning products for K12 learning institutions. Their products use cognitive science and artificial intelligence to create tailored mathematical and scientific courses. These solutions analyze responses and provide individual support, making learning more engaging and enjoyable.
Carnegie Learning’s solutions also help educators better find an individual approach for their students. Its MATHia Adventure is a game-like solution that helps children practice math skills in a colorful environment. The US Department of Education is the startup’s biggest investor. Its total investments are at $23,9 million. Currently, its solutions are used in over 1,500 school districts across the United States.
UK’s language learning edtech startup is one of Duolingo and Babbel's main rivals. Memrise combines adaptive learning and AI technology to provide tailored education. Everybody interested in studying a foreign tongue can check out the 150 courses in 25 languages. This solution, available for web, iOS, and Android devices, has over 50 million users.
Memrise developers use repetition patterns to reinforce language concepts for better comprehension. The learning platform voice recognition to assess pronunciation. Individuals can use smartphone cameras to point at objects and see the correct words for them in different languages. Since its founding in 2016, Memrise has received $21,8 million in funding.
Among all the edtech startups on our list, Osmo has the most significant emphasis on education games. The company provides school solutions for teaching young children critical thinking, communication, and collaboration. In addition to AI, these solutions use AR technology, such as special Osmo letters, pens, and play cards.
Since its foundation in 2013, the startup has gathered many prestigious awards, including the Parent’s Choice award, the Oppenheim ward, and a Toy Of The Year Finalist in 2016. Investors gave the startup $32,5 million over the past decade. Currently, over 31,000 classrooms use Osmo’s products.
The South Korean company developed an AI-based solution that works as a personalized student tutor. Like all professionals, it teaches, evaluates assignments, recommends learning paths, and assesses overall performance. The platform offers unique study plans, leading to better outcomes in exams and standardized tests.
Recently, Riiid rose to the top of the CB Insights AI 100 list as a company that helps transform the edtech industry. Founded in 2014, one of the top edtech startups gathered $256,7 million. During its extensive history, the firm has won the 2020 Brilliant People and Brand Awards and the AI Korea Awards 2020.
One of China’s top AI startups specializes in providing tailored education. The company gained access to some of the world’s largest student databases to train the large language models used in its platform. YiXue Education played a big part in developing its AI algorithms.
Squirrel AI aims to provide a unique educational experience through adaptive assessments and tailored learning paths. Founded in 2014, Squirrel AI gathered $190,4 million from investors. In 2019, the platform won the GITEX Best Education Technology Award, and in 2021, it took the Artificial Intelligence for the Benefit of Humanity trophy with a $1 million prize.
Udacity is a startup and educational platform that uses AI for personalized education. Its algorithms help the solution provide feedback, academic assessment, and content recommendation. Unlike other platforms, Udacity offers education on technical subjects like data science, software engineering, robotics, AI, and ML.
Founded in 2011 in California, Udacity is one of the oldest educational startups. The firm gathered $240 million from its 18 investors over 13 years. Rumors suggest that a significant edtech company wants to purchase it for an undisclosed sum. The platform teaches over 160,000 students from more than 190 countries.
Conclusion
We are closely looking at this edtech solutions market because one of the most exciting projects we worked on was an online course builder and learning tool.
These facts demonstrate that the competition among edtech startups is more robust than ever. Companies from the US, China, and the UK will continue working on their solutions and doing their best to introduce the power of AI to the learning process. We can’t wait to see which startups will appear in 2024 and how they will change the game. Call us if you have an idea for a similar solution.
