AI in EdTech: Transforming learning, bridging skill gaps

The Indian EdTech sector is changing as AI tweaks learning approaches. The market’s projected growth from $7.5 billion to $29 billion by 2030 reflects real demand rather than mere optimism. This growth stems from concrete challenges, India’s workforce readiness shows concerning gaps, with just over half of graduates considered employable according to the Economic Survey 2023-24.

Role of AI in language learning

Language learning emerges as a key application area for AI in Indian EdTech. The surge in Central Universities Entrance Test candidates from 719,000 in 2023 to over 1 million in 2024 demonstrates growing demand for educational resources. The preference for English in competitive exams like NEET, where 79% of candidates chose English as their medium in 2021, highlights the language’s practical importance.

The technology’s implementation takes specific forms. AI-powered language platforms use speech technology and large language models to create interactive coaching experiences. These systems provide immediate feedback and adjust content based on user performance. The affordable pricing structure reflects market realities as these services balance accessibility with sustainability.

Real-world application and workforce relevance

AI’s role extends beyond simple instruction. The technology identifies specific skill gaps by analyzing student data, then modifies learning materials accordingly. This approach helps users develop practical communication skills directly applicable to workplace situations. The focus on real-world application distinguishes these platforms from traditional language learning methods.

The pandemic-driven shift to online learning has led to long-term demand for digital education tools. AI-powered platforms have proven to be effective solutions for English learning, offering personalized coaching that adapts to each learner’s progress. This trend has only intensified, as seen in the dramatic rise of candidates for the Central Universities Entrance Test (CUET), which surged from 7.19 lakh in 2023 to over 10 lakh in 2024. The growing reliance on English, particularly for competitive exams like NEET, where 79% of candidates chose English as their medium of examination in 2021, reflects the increasing demand for English proficiency.

The systems employ specific engagement techniques beyond basic instruction. Gamification elements like point systems, achievement badges, and competitive leaderboards encourage regular participation. These features maintain user involvement without resorting to artificial pressure tactics.

Vocational training and skill development

AI’s application in vocational training represents another practical development. The technology helps deliver specialized training programs while tracking individual progress. This capability addresses India’s need for both technical and interpersonal skill development in its workforce.

Government support for digital education provides a stable foundation for these developments. Rather than operating in isolation, AI-powered platforms benefit from broader initiatives to improve educational access and quality. This alignment with policy objectives suggests sustainable growth potential.

AI-Powered EdTech Startups vs. Traditional Players

Traditional EdTech players have mostly relied on standardized content delivery models, which often fail to address individual learning needs. In contrast, AI-powered EdTech startups are disrupting the market with adaptive learning technologies, real-time analytics, and customized pathways that enhance student engagement and outcomes. While legacy platforms focus on mass education, AI-driven models prioritize personalized, skill-based learning, making them more aligned with workforce requirements. This difference is a serious factor driving investor interest in AI-driven solutions over traditional players.

Looking forward, AI’s role in Indian education appears set to expand based on practical utility rather than technological novelty. The focus remains on addressing specific challenges: improving English proficiency, developing job-relevant skills, and providing accessible, effective learning experiences. The technology’s success will likely depend on continuing to deliver measurable improvements in these areas.

The real question is not whether AI-powered EdTech will grow—it’s which companies will take the lead. With investors paying close attention, those backing AI-driven solutions now are in the best position to benefit from the future of digital learning. AI is not just changing education; it is creating a $29 billion opportunity in India. As more people look to upskill and adapt to a digital world, AI-powered platforms are offering real solutions that investors can’t afford to overlook. This is a turning point for Indian EdTech. AI-driven platforms are improving education and outpacing traditional methods by setting new standards.

(The author is Founder at SpeakX)