Market Projection: Generative AI in Personalized Education
A recent HolonIQ and McKinsey analysis suggests that generative AI-driven learning technologies (like AI tutors, content creators, and personalized learning platforms) will dominate the edtech market. HolonIQ predicts that AI-driven EdTech (particularly generative AI tools) will account for over 30% of the $404B global EdTech market by 2025, with personalized learning platforms and AI tutors leading adoption. A collaborative forecast by HonIQ and McKinsey suggests that by 2027, generative AI will:
Power >50% of digital learning tools in K-12 and higher ed.
Drive $50B+ in annual EdTech revenue, with AI tutors as the fastest-growing segment.Global market size expected to grow from ~5B(2024)to∗∗5B(2024)to∗∗30B+ by 2030**.
AI-powered “learning companions” (e.g., ChatGPT Edu, Khanmigo) projected to be in 30% of K-12 and higher-ed institutions by 2027.
AI-powered tutors could automate up to 20-30% of teacher tasks (e.g., grading, lesson planning). Personalized learning platforms (like Khan Academy’s Khanmigo) are scaling rapidly, with a 40%+ annual growth rate in adoption.
Global education is due to go omni channel. Are we ready?
Reference:
HolonIQ (2025) Global Education Outlook https://www.holoniq.com/notes/2025-global-education-outlook
HolonIQ (2025.4) Systematic AI strategic skills https://www.holoniq.com/notes/systemic-ai-strategic-skills-q1-2025-education-trends-outlook
Hey Jiange,
I’m excited and worried about Generative AI for personalized use. The benevolence of it means that people who need the extra attention can get support in the education processes and pedagogies that support them in learning. We know there’s a gap with access to tutors. The other side that I am fearing is the cost associated with it. We also know that learners that need this support might not have financial ways to be able to access this feature to support them in being able to grow and learn.
What are you most excited about and what worries you about this technology?
When computer just came out, it’s huge and costly. Same would apply to all new technology as part of evolution . I am not too worried about cost. Rather, I would be concerned about how effective the personalisation can be and what factors may distort the input and how to evaluate fairly between students who are more advanced in knowledge progression with more complicated personalized courses while rest of the team who are “slower” may score higher.