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Schools Spend Big on AI, but Struggle to Know What’s Worth Buying
Districts are weighing AI tools against privacy, equity and instructional value as the market nears $48 billion in U.S. education technology revenue, researchers said.
As the AI in education market is expected to exceed $15 billion by 2033, school districts nationwide face mounting pressure to vet complex new tools while carrying the burden of evaluation largely on their own.
Industry innovation is moving faster than districts can manage, leaving them struggling with what Instructure calls 'digital hoarding'—districts have access to an average of 3,001 digital tools while students and educators use only four.
Sumner County Schools and The Allentown School District implement rigorous vetting processes, while Los Angeles paid $3 million for an AI chatbot from AllHere, which later filed for bankruptcy and whose founder was charged with fraud.
With the U.S. Department of Education providing little guidance, Common Sense Education is assisting districts, while Janice Mak, an associate director at Arizona State University's Learning Engineering Institute, says 'humans are the ones who will know what's best for their schools and students.'
The overall U.S. education technology market generated $48 billion in revenue in 2024 and is expected to reach more than $90 billion by 2030, prompting experts to advise districts to prioritize tools aligned with cognitive science rather than chase hype.