This article was originally published in SmartBrief on 08/26/25 by Charlie Sander.
Experts predict 2025 may be the year of edtech. According to Arizton’s latest research report, the Edtech market will grow by close to 15% by this December.
The industry saw a rise in investments after the COVID-19 pandemic pushed students and teachers into the reality of online learning. Although investment activity has dipped since its 2021 peak, the industry is expected to grow faster in the coming years than the overall global education sector, per Morgan Stanley analysts.
These aren’t small numbers either. Morgan Stanley projects global edtech spending to increase from $250 billion in 2022 to $620 billion in 2030.
Yet conversations about the future of edtech wouldn’t be complete without a discussion on AI. The education sector experienced some of the most significant disruptions following the launch of ChatGPT, as students became eager early adopters of the technology.
For educators, AI is polarizing. Some oppose its use entirely, while others seek ways to help students incorporate it into their learning sensibly. One thing we all know for certain: AI is here to stay.
While 77% of educators think AI is useful, only 56% are actually using it according to Carnegie Learning’s The State of AI in Education report. This hesitancy in committing to AI suggests K–12 education leaders are taking a wait-and-see approach to this new technology.
Yet AI today needs to be considered in a much broader context. The question is no longer about whether students are using AI, but instead on how it can solve some of the most pressing challenges in today’s classrooms. Here are three things many are overlooking when it comes to Edtech and AI in 2025.
It’s no secret that teachers are overworked and underfunded. Limited funding and the stress of teaching are turning many away from the profession, adding to the burden of those who stay. As teachers try to do more with less, their ability to focus on educating students is becoming increasingly impossible.
Last year, the World Economic Forum found that teachers often put in over 50 hours a week; however, direct student interaction makes up less than half of this work.
At the same time, students report an engagement gap, with 50% saying they are “not engaged in what they are learning in school most of the time,” according to Gradient Learning research.
AI can positively impact teachers and students alike. With innovations ranging from personalized learning journeys to predictive analytics, AI has the potential to reverse these growing retention and decreased engagement trends experienced across the US…
