Innovation has always driven education technology (EdTech), and in 2025, artificial intelligence (AI) is leading the next wave. No longer just an emerging tool, AI is becoming the fundamental infrastructure shaping how EdTech evolves—reshaping how EdTechs develop solutions, how educators teach, and how students learn. It’s no longer a question of whether AI has a place in education, but how deeply embedded it will become.

At Amazon Web Services (AWS), we work with EdTechs of all sizes, giving us unique insight into how AI is shaping the industry. Based on our work with EdTechs and educational institutions around the world, we’ve identified six key trends shaping the future of AI in education.

1. AI is evolving from a tool to core infrastructure

A major shift is underway: AI is moving from being an add-on to an essential layer of EdTech infrastructure. AI is no longer just a feature; it is becoming the backbone of both EdTech products and internal operations.

EdTechs are embedding AI directly into their platforms to enhance learning experiences at scale. Instead of one-size-fits-all content, AI-driven solutions can analyze student assessments and dynamically tailor lesson plans to individual needs. This shift makes education more personalized, efficient, and effective.

At the same time, AI is optimizing how EdTechs operate. Companies are using AI to streamline business functions, from sales and marketing functions like forecasting, email marketing, and upselling, to finance, human resources (HR), and customer support. By automating routine tasks and surfacing actionable insights, AI allows teams to focus on product innovation and improving the customer experience.

The big takeaway for EdTechs? AI is no longer an option—it’s a necessity for staying competitive.

2. Educational institutions are adopting AI faster than expected

Historically, education has been cautious about adopting new technology. AI is proving to be the exception. Schools, colleges, and universities are integrating AI-powered solutions at an unprecedented pace. In a 2024 Ellucian survey of 445 faculty and administrators from across the US and Canada, 93 percent expect to expand their use of AI in their work over the next two years.

Unlike previous technologies that required extensive retraining, today’s AI tools integrate seamlessly into the workflows educators and students already use. Plus, as AI demonstrates immediate results and educators see real efficiency gains, this has led to higher comfort levels and faster adoption across institutions.

Trust has been another key factor in AI adoption among educators and institutions. EdTechs placed an early emphasis on responsible AI development, involving education institutions in shaping AI tools from the beginning to align with ethical standards, data privacy, and real-world classroom needs. This collaborative approach helped educators feel more comfortable with AI and accelerated adoption beyond what we’ve seen with previous technologies.

At the same time, alternative learning pathways like microcredentials and skills-based courses—such as those offered by Coursera and other platforms—are seeing rapid growth, particularly in AI and machine learning. In fact, 40 percent of Coursera’s top courses in 2024 teach AI, with three million new enrollments in generative AI courses during the year—one every 10 seconds. These programs highlight both the demand for accessible, flexible learning and the speed at which AI-related knowledge is being disseminated outside of traditional institutions.

3. AI is shifting from reactive to proactive support

One of the most significant changes we’re seeing is AI moving from reactive to proactive support models. Early AI systems waited for users to ask questions. In 2025, AI systems can understand context, anticipate needs, and offer support before anyone asks.

This shift makes truly personalized support possible at scale. For students, AI can now analyze assessment results and create customized learning paths targeting specific knowledge gaps. For example, Curriculum Associates uses AI on AWS to offer assessment programs that analyze results and deliver tailored content based on each student’s individual needs.

This evolution complements a broader shift in education platforms, moving from content-library models to more collaborative, student-centric environments. Modern learning management systems (LMS) like Schoology, Moodle, and Canvas increasingly support personalization, collaboration, and analytics. When combined with AI, these platforms can become even more adaptive and responsive to students’ learning preferences and progress.

For educators, AI is transforming administrative work. Benchmark Education’s AI-powered grading tool helps evaluate open-ended assessments, giving teachers valuable time to focus more on one-on-one instruction and student engagement.

With the development of AI agents, we are see more automation in education systems—where AI not only recommends but executes next steps, such as dynamically adjusting lesson plans or proactively suggesting interventions for struggling students before an educator even notices a gap.

4. Addressing education equity in an AI-powered world

AI has the power to transform education—but only if students have access to it. According to the Pew Research Center, internet access in the US has increased from 85 percent to 96 percent in the past decade. However, global access remains considerably lower. If AI-powered learning tools create superior educational experiences yet remain inaccessible to underserved communities, existing educational inequalities could widen.

Public-private partnerships will play a critical role in addressing this challenge. AWS is actively working with nonprofit consortiums and governments to extend AI-powered tools to all students. For example, Amazon’s Project Kuiper aims to provide satellite-enabled internet access worldwide and has the potential to expand connectivity to underserved regions and remote areas, helping students gain access to the same high-quality materials as more connected regions.

Additionally, the AWS Education Equity Initiative, announced last December, is investing $100 million to support technologies, specifically designed for underserved students and markets globally. For EdTechs seeking to develop solutions for underrepresented communities, learn more about how to apply for the AWS Education Equity Initiative here.

5. Real solutions will attract investment

Venture capital investment in EdTech has declined since 2021, but that doesn’t mean funding has disappeared. Instead, investors are focusing on companies that solve real, measurable problems.

The era of building AI solutions simply for the sake of AI is over. Institutions are under pressure to demonstrate ROI, meaning they are prioritizing EdTech solutions that deliver measurable learning outcomes, time, and cost savings for educators, and improved student engagement and retention. EdTech startups should focus on niche solutions with clearly defined value propositions rather than attempting to build broad, one-size-fits-all platforms.

One example? Transportation challenges in education. I recently read that in Baltimore, about 25,000 students rely on public transit to get to school because the city doesn’t provide buses after fifth grade—leading to chronic tardiness and lost learning time. AI-powered solutions integrating route optimization with real-time traffic analytics to automatically adjust class schedules is one such possibility for these scenarios. Solving challenges like this requires both public policy and technology innovation to reduce costs and increase scalability, but it’s a prime example of the kind of impact-driven disruption investors are looking for.

6. AI could redefine learning itself

Beyond improving existing education models, the proliferation of AI is pushing us to ask: What could the future of learning look like? Just as the calculator transformed how students learn mathematics, and the internet transformed study and research, AI will force us to rethink learning. As the traditional education model of rote memorization and recall is made obsolete by on-demand information, moving forward, education models could prioritize critical thinking and creativity as core competencies, with personalized learning to match individual learning styles and career goals. AI also provides opportunities to lean into Generation Z and Generation Alpha’s preference for visual learning, instant feedback, and digital collaboration, making education more relevant and effective for modern learners.

AI won’t replace teachers, but it could redefine their roles. Educators could shift from content delivery to learning facilitators, helping students develop higher-order skills that AI cannot replicate. By 2030, we may even see new education models emerge, where AI-driven personalization and predictive analysis make traditional one-size-fits-all curriculums obsolete, while learners have an omnipresent AI tutor or coach supporting the learning journey. The challenge, then, is ensuring that innovation aligns with real-world needs and career pathways, so students graduate prepared for a world where AI is everywhere.

Looking ahead: What’s next for EdTech?

As we move through 2025, AI will continue transforming education in ways both expected and unexpected. For EdTechs navigating these changes, focusing on real problems with measurable outcomes remains the surest path to success.

At AWS, we’re committed to supporting EdTechs throughout this journey. Our dedicated EdTech vertical team provides comprehensive assistance, from technical solution development to go-to-market support, helping companies leverage the AWS Cloud to build the next generation of educational technologies.

Want to explore how AI can transform your EdTech solutions? Connect with an AWS EdTech expert today.

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