While broader economic challenges continue to put a damper on the wider information technology industry, following a series of unprecedented layoffs, lower-than-expected earnings, and overall slower investment deals – many remain hopeful that the education technology sector (ed-tech) could rise to prominence on the back of Artificial Intelligence (AI) and smart classroom capabilities. 

With many positives over the potential of an edtech boom in the near future, others are more concerned over the sharp decrease in funding the sector has received from venture capital deals throughout last year, and during the first quarter of the year. 

Venture capital investors poured roughly $4.2 billion into U.S.-based ed-tech companies in 2022. However, this marked a nearly 50 percent decline from the year before, with more than $8.3 billion invested in 2021. 

Even more worrisome is the roughly $2.2 billion secured during the first quarter of the year, a far cry from analysts’ expectations. 

The sharp decline marks the beginning of what many claim to be K-12 schools tightening their purse strings amid economic difficulties, taking up less interest in advanced and smart classroom products. 

As it stands, it seems funding might be steadily drying up for tech companies, prompting many to consider the potential future of the industry, and whether these companies could come back with the same prowess as what they entered the decade with back in 2020. 

What is the future of ed-tech?

On a linear scale, it’s hard to determine how the ed-tech industry will unfold in the coming years. However, the advancement, and seemingly rapid development of commercial generative AI tools could potentially be a stronghold for the industry, allowing startups and entrepreneurs to ride out challenging conditions. 

Personalized Learning Experiences 

A development that could help reshape the way educators teach and operate their classrooms is the advancement of personalized learning. The use of AI-backed software tools and Machine Learning (ML) could allow educators to create more personalized, or one-on-one experiences for students. 

The development of these tools could seemingly be integrated with other digital capabilities such as virtual reality (VR), whereby educators can now develop plans and learning sessions based on student’s needs, and abilities, and find more adequate solutions, rather than using generalized methods and strategies. 

Integrated Systems 

There’s a good chance that ed-tech tools will become more integrated with existing digital infrastructure, allowing schools and educators to utilize advanced software capabilities more frequently within the classroom setting. 

We could see more ed-tech-based tools being used with ordinary tools, such as computers, smartphones, and tablets. This could lead to some advanced tools becoming more accessible to a bigger number of schools and systems. 

Instead of seeing a minority of advanced, and more affluent schools having access to basic ed-tech software and infrastructure, new teaching models can now be shared among an array of classrooms, regardless of financial and economic implications. 

Neuroscience and Cognitive Processes 

Researchers within the tech and educational fields are continuously uncovering more understanding of the neuroscientific properties, and how cognitive development could be integrated within the advancement of edtech tools.

While there is still a lot to learn, advancements in brain-computer interfaces (BCIs) are further increasing the understanding of how ed-tech-based tools can be used to enhance the learning outcomes of students. 

Measuring brain activity, and collecting cognitive data processes would help researchers form more fundamental educational tools that are designed for student-specific uses, and would further optimize in-person and virtual learning experiences. 

Virtual Learning 

During the onset of the pandemic, classrooms and lecture halls moved into the virtual learning ecosystem, prompting both educators and students to become more accustomed to what could potentially be the future of teaching and learning. 

However, since then, the majority of educational activities have resumed as normal, relying on antiquated structures. 

The coming years would potentially be a breakthrough period for virtual classrooms. Instead of relying on traditional methods, which see students participating in person, eLearning and derivatives could help educators reach remote learners, further making learning opportunities more accessible to a larger majority of the global population. 

Not only will classrooms become more advanced, and tech-based, but higher research and academic institutions will see greater improvements in the sharing of resources among students, even outside of their proximity. 

There are still big opportunities within the eLearning ecosystem, and further developments would help make education, and basic learning materials more democratized for a bigger share of the disproportionately displaced population. 

Growing Competition

As with any industry that still poses a tremendous amount of opportunities, growing demand could affect the landscape undergoing a dynamic shift in the number of new companies and startups all competing to develop the next big thing in ed-tech. 

A sense of competition among companies could further drive accessibility, and furthermore, affordability to the forefront of the argument. Allowing more educators, students, and schools to have access to the best ed-tech-based tools. 

Whichever way the pendulum may swing, ed-tech still has an encouraging future, even as the industry experiences a decline in available funding and investment opportunities. 

While there may be a decline in interest coming from both public and private investors, growing demand, not only from K-12 schools and institutions could help push ed-tech into the next frontier of education and help revolutionize the way we understand, teach, and interact with students in the classroom.