Artificial intelligence (AI) in education isn't just a fantasy anymore. It only took a few months for generative AI, ChatGPT, and other AI chatbots to shake up education, and their impact has continued to grow.
The new technology has far-reaching implications for learning and education, and has been embraced by students as a homework-assistance tool or as a full-on substitute for writing papers.
The new technology was such a threat to traditional learning that New York City public schools banned ChatGPT from in-school devices just weeks after it launched, although it later reversed that ban. Still, it's clear that the new technology has major implications for the education industry.
Meanwhile, shares of Chegg (CHGG -1.24%), which rents textbooks and provides homework assistance, fell by almost 50% in one session in May 2023 after it revealed that new user growth had slowed because of competition from ChatGPT. The stock has continued to slide since then and now appears to be headed to zero.
It's clear that generative AI is setting off a transformation in education, and it's only just beginning.
In this look at AI for education, we'll discuss the basics of artificial intelligence and how it's affecting education. We'll provide several examples of AI in education and explain how the role of AI in education will take shape in the future.
What is AI?
What is artificial intelligence?
Artificial intelligence is the ability of computers and machines to perform tasks normally associated with human intelligence.
This can include anything from machine learning to natural language processing to computer vision to robotics and neural networks.
Computer Vision
Generative AI tools like ChatGPT may come to mind first when you think of artificial intelligence. But AI has been operating behind the scenes online and in computer systems for years.
Companies like Meta Platforms (META -1.65%) and Netflix (NFLX -0.79%) rely on recommendation AI to determine which accounts and movies to suggest for you. Facebook's parent company also uses AI to screen images that it doesn't allow, such as nudity.
Additionally, chatbots and voice assistants like Alexa and Siri offer another example of widely used AI systems.
Five uses of AI in education
Five uses of AI in education
1. Translation and language learning
One of the most direct applications of AI in education is translation and language learning.
ChatGPT can handle translations capably and can serve as a language-learning tool, helping students check their work and teaching them vocabulary and grammar.
Among the stocks that fell in the wake of Chegg's announcement about the challenge from ChatGPT was Duolingo (DUOL 2.84%), the popular language-learning app. It rebounded and moved higher after that, but in 2025, it cooled off on concerns about slowing user growth, though revenue rose 41% in Q2.
Investors feared that Duolingo users could stop paying for its services and instead just use free AI tools like ChatGPT. However, Duolingo has already integrated some of ChatGPT's features into its product and incorporated other AI tools.
For example, in March 2023, the company launched Duolingo Max, which uses GPT-4 technology to add two new features to Duolingo Super. Those features explain wrong answers to users and offer a role-playing feature that allows users to practice conversations in different scenarios.
In early 2024, the company cut contract workers since it plans to use AI to create more lessons, and it also introduced a generative AI subscription plan. Additionally, it has launched a feature called "video call" with an AI character and a game-based experience called "Adventures."
As AI adoption increases, the opportunities for AI language learning are likely to expand.
AutoGPT
2. AI in writing
While some students have already discovered that ChatGPT can be a useful tool for outsourcing homework, the generative AI technology also offers real benefits for students who are learning how to write or trying to write more clearly.
Grammarly, the AI-based spelling and grammar check tool, is one well-known example of an AI tool being used to help with writing. The program offers advice for clarity, tone, and other qualities to improve writing, and web browsers like Microsoft Edge have introduced similar tools.
Similarly, ChatGPT and other generative AI programs can rewrite, edit, or make changes to documents in other ways as needed.
For creative writers, AI tools can also help with writing prompts, story ideas, dialogue, and other needs, and they can help writing teachers come up with similar ideas to help with teaching.
Although plagiarism will always be unethical, it's a mistake for educators to ignore the potential for AI programs to help students become better writers.
3. Early childhood education
There is also a wide range of existing and potential applications for AI in early childhood education.
AI can be used to create interactive games and other teaching tools that can teach young children academic or social skills.
Artificial intelligence can also be used to power monitoring systems to help track children's behavior and glean insights into their development. It can function as a teacher's helper, paying attention to children when the instructor is busy.
Some studies have shown that AI can improve teaching and learning in early childhood education, including developing language skills.
There are also AI-powered toys that can help introduce children to artificial intelligence concepts and improve early learning.
AI gives teachers the ability to customize lessons to keep kids' attention and offer assistance in areas like speech development.
4. AI in teaching
Although a number of jobs are at risk from AI, teaching does not appear to be one of them -- at least not at the K-12 level.
The COVID-19 pandemic showed the value of in-school learning, and school offers other benefits for students, like socialization.
AI technologies can provide many benefits to teachers, saving them time and redirecting their energy to more valuable tasks.
The tasks that AI programs like ChatGPT can help with include creating tests and lesson plans, assisting with grading papers and homework, offering personalized help to students, and even creating videos from textbooks.
The potential is vast, and classroom teachers should aim to take full advantage of this technological breakthrough.
5. AI in tutoring
While AI isn't a substitute for classroom learning, it can help students who are falling behind and need extra practice.
AI programs can drill students in any subject and coach them on areas that require extra study.
AI is especially useful for tutoring because it can be personalized, and programs like ChatGPT allow users to come up with a specific and unique study plan that will work for the student.
Among the classes that AI is best suited for are geography, languages, physics, math, computer programming, chemistry, and more.
Teachers can also work with students to design AI tutoring programs that can help students master a subject in a learning style that works best for them.
Related investing topics
Pros and cons of AI in education
Pros and cons of AI in education
AI is a controversial topic in most fields, especially in education. Let's take a look at the pros and cons of AI in education.
Pros:
- AI can save time and labor.
- AI can do things like write tests and make lesson plans.
- It can serve as an assistant to teachers in the classroom.
- It can offer instant feedback to students in areas like writing.
Cons:
- It's easy to rely too much on the technology, which can limit critical thinking.
- AI can make it easier to cheat.
- AI can be a distraction to students and contribute to learning loss.
- It can discourage learning by making answers readily available.
Future of AI in education
Future of AI in education
Artificial intelligence education won't fully disrupt the school system, and students and teachers are already taking advantage of new technologies like ChatGPT.
In education, AI is likely to supplement the existing educational infrastructure rather than disrupt it, and learning how to use such tools should become a priority for students and teachers, much like computer science has become more valuable over the last three decades.
Above all, AI tools could improve learning outcomes and allow teachers to focus on areas where they can add more value.
However, there are risks to using AI in education as well. There are signs that AI is contributing to learning loss, and some schools are struggling to push back against AI as students use it for homework help or even plagiarize from it. Some schools are going back to in-person exams, wary of students using ChatGPT at home.
From an investing perspective, there doesn't appear to be many great investment opportunities in AI for education at the moment, since a number of education stocks have fallen on the threat from ChatGPT and related tools. Still, investors looking to invest in AI stocks can also consider AI ETFs and even AI chatbots.
As generative AI technology continues to develop, there are likely to be more investment opportunities available.
FAQ
AI in education FAQ
How is AI being used in education?
AI has found several successful uses in education, ranging from tasks like assisting with translations and language learning to outsourcing homework and grading assignments. It has also been used to develop interactive games to assist young children's academic and social skills as well as create lesson plans.
What is the main role of AI in education?
AI's primary role in education has been to keep learning interesting and engaging for students while providing teachers with a way to quickly adapt, personalize, and tailor their lesson plans to all students in their classes.
Can AI replace teachers?
AI is extremely unlikely to fully replace teachers in the classroom. The pandemic showed us the value of in-school learning, including socialization and personalized assistance in the classroom. However, the impact of AI in education is vast, and teachers should aim to take full advantage of the technology available to them.
Is it ethical to use AI in education?
The ethics of using AI in education are the same as using other educational tools. Using AI as a study assistant to give background information, for example, or to help explain something, is acceptable.
However, plagiarizing from it or using it as a shortcut that undermines one's own learning is likely to be seen as unethical.
How accurate is AI in education?
AI is not infallible, but companies like OpenAI are increasingly designing tools specifically for education to help students without giving them the answers.
Still, the same guidelines apply to using AI in other areas. It's a good idea to double-check facts elsewhere.
How is AI currently being used in higher education?
AI is being used in higher education in a number of ways.
It can be used as a virtual tutor or for identifying students at risk of dropping out. It can also help professors by designing tests, grading rubrics, and assisting with paperwork and written communication.
