AI is set to transform education — what enterprise leaders can learn from this development


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After six decades of dreaming and experimenting, we might be on the cusp of a technology-enabled revolution in education. The Arizona State Board for Charter Schools recently approved the application by Unbound Academy for a new online school that will replace traditional teachers with AI teaching assistants, promising to deliver 2.4 times the academic growth for students compared to results from conventional schools. 

This advance is not the result of another incremental tech experiment — instead, it represents the latest chapter in a 60-year quest in computer assisted instruction (CAI) to transform education through technology. This time, the evidence suggests a true breakthrough might be near. If this Academy and similar initiatives are successful, it will mark the fulfillment of a long-held dream.  

The idea of using computers to assist student learning dates to the 1950s, with the first application —Programmed Logic for Automatic Teaching Operations (PLATO) — appearing in 1961. PLATO offered interactive lessons and real-time feedback using terminals connected by telephone lines to a time-share computer system. Like other time-share systems, PLATO ultimately failed due to the high expenses required. 

Other attempts at immersive, experimental learning famously included Second Life — a virtual world accessible through the Internet where people participated as avatars — in the early 2000s. Although not explicitly a CAI tool, Second Life demonstrated the potential for immersive virtual learning environments. At one point at least 300 universities around the world including Stanford and Harvard taught courses or conducted research on the platform. Ultimately, Second Life struggled due to a poor user interface (UI), robust technical requirements, a steep learning curve and an inability to scale.

The advent of generative AI in 2017 marked a turning point in CAI, with tools like Writable and Photomath enhancing both teaching and learning. Writable, for example, uses AI to provide feedback on student writing, helping teachers manage large workloads. As reported by Axios, Writable uses ChatGPT to produce comments and observations that are sent to the teacher, who is expected to review and tweak them before providing the feedback to the students. 

Such tools highlight AI’s growing role in addressing the long-standing resource constraints of traditional education. In some school districts in the U.S., primary class sizes exceed 40 students. If a teacher spent 10 minutes reading and critiquing a writing assignment from each student, that would be 400 minutes, or more than 6.6 hours outside of class time, to provide feedback for one assignment. That seems untenable, especially in combination with evaluating other student assignments. A boost from technology will help to address this challenge.

AI-powered tutoring at scale

In a more comprehensive approach, the Khan Academy, led by founder Sal Khan, has been offering free online education tutorials since 2008. In 2023, the company launched Khanmigo, an interactive AI tutor for students that incorporates ChatGPT. 

In a 2023 TED Talk, Khan talked about the potential of Khanmigo for improving student performance. In the talk, he discussed a 1984 paper titled “The 2 Sigma Problem” by Professor of education Benjamin Bloom, then at the University of Chicago and Northwestern University. 

Caption: Khan Academy founder Sal Khan discusses AI-powered tutoring in a 2023 TED Talk. Source:

The often-cited paper argued that students receiving individualized tutoring performed two standard deviations better than those receiving only traditional classroom instruction. However, Bloom was aware that this level of tutoring was impractical due to resource constraints including the costs of obtaining human tutors. Bloom believed the solution was to devise more economical interventions that could approach the benefits of tutoring. 

Khan argues that though the application of AI-infused technology, Khanmigo effectively overcomes the resource constraints. As noted in a Harvard Business School case study, Khan said that Khanmigo might be “that holy grail we’ve all been reading about in science fiction for years, about an AI that could emulate a human tutor.”

Students who receive 1:1 human tutoring tested two standard deviations better than those who did not have individual tutoring. Source: https://web.mit.edu/5.95/www/readings/bloom-two-sigma.pdf 

Some have pointed to flaws in the Bloom paper, questioning the evidence supporting his conclusion and dismissing the claims as being farfetched. In an effort to “separate science fiction from science fact,” Paul von Hippel, a professor and associate dean for research in the LBJ School of Public Affairs at the University of Texas, opined that the two standard deviation claim is both “exaggerated and oversimplified.” Nevertheless, there is little question that the application of technology tools could improve educational outcomes. 

Balancing efficiency and human connection

While AI tools show immense promise in addressing resource constraints, their adoption raises broader questions about the role of human connection in learning. Which brings us back to Unbound Academy. Students will spend two hours online each school morning working through AI-driven lessons in math, reading, and science. Tools like Khanmigo and IXL will personalize the instruction and analyze progress, adjusting the difficulty and content in real-time to optimize learning outcomes. The Charter application asserts that “this ensures that each student is consistently challenged at their optimal level, preventing boredom or frustration.” 

Unbound Academy’s model significantly reduces the role of human teachers. Instead, human “guides” provide emotional support and motivation while also leading workshops on life skills. What will students lose by spending most of their learning time with AI instead of human instructors, and how might this model reshape the teaching profession? 

The Unbound Academy model is already used in several private schools and the results they have obtained are used to substantiate the advantages it claims. Yet, it is not clear how a computer-based model will impact a student’s ability to foster human connections outside of a traditional school setting. These issues and questions highlight the complex trade-offs schools like Unbound Academy must navigate as they redefine the educational landscape.

Is the revolution here?

The Academy is not the only instance of AI being used in schools. Khanmigo is being piloted in 266 school districts in the U.S. in grades three through 12. As reported by CBS, the software is used by teachers as well as students. This pilot program offers a glimpse into how AI could integrate into existing education systems, supporting both teachers and students by enhancing lesson planning, saving time and providing real-time insights into student progress.

CAI has come a long way since PLATO, although it has taken more than 60 years. If AI-driven models succeed, they could democratize access to high-quality instruction. While AI has the potential to widen existing disparities, it also offers unprecedented opportunities to bring quality education to underserved communities. 

As schools like Unbound Academy and those piloting Khanmigo pioneer AI-driven teaching models, they are not just testing a new educational approach — they are challenging our fundamental assumptions about how learning happens and what role human teachers should play in that process. The results could reshape education for generations to come.

Gary Grossman is EVP of technology practice at Edelman and global lead of the Edelman AI Center of Excellence.

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