How EdTech Companies Can Overcome AI Challenges & Build a Smarter Future
Artificial intelligence has already proven revolutionary for EdTech companies, and the pace of ongoing change is dizzying. Once dominated by traditional textbook publishers and learning platforms, the EdTech industry is now leveraging AI to transform how educational materials are created, tailored and distributed.
From AI-powered tutors to generative AI (GenAI) tools that hyper-personalize learning content, the promises of these innovations are immense — but so are the challenges.
We recently surveyed more than 7,300 executives and engineers from eight industries across the globe, including 925 participants from the education and business information services (BIS) industries.
The education and BIS survey respondents identified challenges with governance and protecting intellectual property (IP), upskilling their workforce and optimizing operational efficiency. We know AI can deliver ROI, but addressing these challenges will allow EdTech companies to get the most out of AI tools, thereby maximizing ROI.
Understanding the Challenges
As AI matures, it continually brings both opportunities and risks for EdTech companies. On the plus side, GenAI can increase productivity, automate workflows and lower operating costs. But its disruptive capabilities can also create vulnerabilities, particularly around IP protection, workforce readiness and operational efficiency. For EdTech leaders, navigating these three challenges is critical to maintaining their competitive advantage and getting the most out of the AI revolution.
Protecting Intellectual Property without Stalling AI Innovation
The “secret sauce” for many EdTech companies resides in their specialized content. These organizations often began as content creators, offering niche resources tailored to specific educational needs. However, with AI models increasingly consuming content to generate insights or educational materials, EdTech companies are legitimately concerned about IP protection. If a company’s proprietary content is absorbed into external datasets, their competitive differentiation will be eroded. IP is so central to some companies, in fact, that they have filed legal action to protect it.
In our survey, 72% of education and BIS respondents said that “confidential data being used to train public LLMs” is an important security concern. The challenge lies in creating governance frameworks that protect their IP rights while still utilizing AI to enhance workflows and produce value.
Workforce Upskilling in the Age of AI
One of the greatest barriers to deploying GenAI effectively in EdTech is an insufficiently skilled workforce. In our survey, 59% of education/BIS respondents reported that their teams lack the necessary skills to deploy GenAI solutions effectively. Moreover, 44% of staff will need significant upskilling in AI-related capabilities over the next 18 months, according to the survey.
The rapid pace of change in AI tools necessitates investment not only in cutting-edge technologies but also in human capital — and that means upskilling and reskilling. Workforce readiness can determine whether EdTech companies thrive with AI or fall behind their competitors.
Cost Pressures and Operational Efficiency
Amid disruption, EdTech companies must strive to maintain relevance in the market while controlling costs. The industry is increasingly leaning on GenAI to automate time-intensive workflows, such as content editing. By automating such processes, EdTech companies can realize enormous productivity improvements. But only if effective integration and enterprise-wide adoption are prioritized.
According to our survey results, there is ample room for growth in operational efficiencies and costs savings. Only 41% of education/BIS respondents have seen greater operational efficiencies as a result of AI (second-lowest among the eight industries) and only 36% reported any cost savings (third-lowest among industries we surveyed).
BY THE NUMBERS
72%
Education/BIS respondents who said “confidential data being used to train public LLMs” is an important security concern
59%
Education/BIS respondents who reported that their teams lack the necessary skills to deploy GenAI solutions effectively
41%
Education/BIS respondents who have seen greater operational efficiencies as a result of AI
Shaping Your Solutions
Change is hard and the pace has never been more frenetic. The good news? We are already seeing best practices emerge, lighting the way for those who seek to get the most out of AI.
Comprehensive Governance Frameworks
The big players in EdTech already put governance first, but for every other company the to-do list can be daunting. Robust, scalable governance frameworks are a must to protect IP while also aligning with business objectives.
It's not easy. Education and BIS survey respondents said on average, they still need 18-20 months to roll out a comprehensive governance model.
New tools are emerging to help. For example, EPAM’s DIAL is a modular, open source AI orchestration platform that leverages the power of the ever-changing menu of large language models (LLMs), such as ChatGPT, while protecting enterprise data. DIAL’s AI workbench can access a wide range of APIs, custom add-ons and business applications, without vendor lock in. Governance frameworks are built in, ensuring IP isn’t compromised while enabling workflow automation.
Critically, those frameworks are future-proof, evolving as needed to keep up with changing legislation. The EU Artificial Intelligence Act, for example, was passed last year, but only recently resulted in new guidelines, which are expected to continue to develop as AI does. With DIAL's continuous evolution, it's built to keep pace with regulatory change.
By integrating robust governance mechanisms, EdTech companies can confidently adopt AI technologies while preserving their competitive advantage.
Workforce Training and Reskilling
GenAI’s full potential is realized only when employees are trained to use new tools effectively, and that requires structured training programs to ensure employees at all levels are upskilled in AI. We recommend framing AI education in three waves:
Foundational literacy
First, everyone must understand the basics of AI, what it is and how it works, and learn to share a common language. It’s important for people to understand why your company wants to adopt AI and what it hopes to achieve. This is a good time to address concerns as well.
Tool training by role
We’re all figuring out AI together right now. This second step is when you want to get early adopters/AI enthusiasts to start experimenting, so your company can figure out the best use cases.
Use-case training
Lastly, once you know how and where AI can help your company, then you can do specific use case training on whatever tool or tools are relevant.
EPAM has learned how to tackle the most significant challenges that companies face when adopting AI. In our eBook AI Adoption: How to Overcome 5 Common Barriers to Success, we discuss change management and specifically how to tackle AI anxiety and balance experimentation with security imperatives.
Scalable Operational Efficiency
AI can help enhance productivity by integrating the right tools into company workflows at every level. But there are so many AI tools and new ones debut seemingly every day. It’s critical to separate workflows that can be automated from workflows that require deep subject-matter expertise in the various content areas.
Many EdTech organizations are still in prep mode or are evaluating use cases. In our survey, we asked respondents to identify themselves in one of four categories, which we defined: Beginner, Competent, Advanced, Disruptor. Of the eight industries, education/BIS respondents represented the smallest proportion of self-identified Disruptors (3.5%), and the second-most self-identified Beginners (17%).
One use case that has already proven a strong candidate for AI is student acquisition. Traditionally, the cost of new student acquisition has been sky-high, but AI has revolutionized marketing, which means companies can now tailor their messages to hyper-specific student geographies or other demographics.
Companies need a trusted partner to help identify the right uses cases and the right tools to improve operational efficiency.
Learning to Embrace AI
The EdTech industry was already evolving but AI shifted this process into hyperdrive. As EdTech organizations navigate the intersection of content, workflow and service delivery, they can learn to transform risks into opportunities. With a structured, strategic approach, companies can successfully protect their intellectual property, reskill their workforce and achieve operational efficiency — all while maintaining their competitive edge.
There’s no time to waste. AI is rocking our world, and EdTech companies have a particular responsibility to lead the way and to start defining the future of education for generations to come.
