Artificial intelligence has taken centre stage across all sectors and aspects of life in recent years, including education.
From personalised learning platforms to automated assessment, AI is being pitched as the future of learning. Yet, amid all the noise, we’ve seen investment in online education groups dropping rapidly, and billions lost as new consumer-led tools on the market have undercut the value of traditional platforms.
The global education market is still growing, but for EdTech to succeed, it needs more than just smart algorithms. It needs the experience, judgement, and insight of educators.
A shift in investment focus
Funding tells the story. EdTech investment fell to its lowest since 2014, with just $2.4 billion recorded in 2024, while AI projects and companies saw over $51.4 billion in funding in the same year. Investors are chasing general-purpose AI with wide commercial use, often overlooking the education sector’s specific needs. And despite EdTech’s race to adopt AI, the sector has often prioritised automation over meaningful innovation that improves the learning experience. Some investors have become wary of EdTech’s slow returns on investment, which can be hindered by complex procurement processes and the need for evidence-based impact.
The result is a funding landscape where educational innovation risks being overshadowed by headline-grabbing AI breakthroughs—despite the urgent need for thoughtfully designed tools tailored to real classroom challenges.
The promise and limits of AI
There’s no doubt that AI can improve education in certain ways. It can help adjust the speed of classes or courses to suit a learner’s pace, handle admin tasks like grading, and offer helpful analytics. However, real teaching is more than content delivery. It’s about empathy, creativity, and knowing your students well enough to respond in the moment to their needs. That kind of connection is something AI simply can’t replicate.
Why human connection matters
Teachers create safe spaces where students feel seen, heard, and supported. They notice when a student is anxious or disengaged. They motivate, adapt, challenge, and reassure. They teach not just facts, but how to think, feel, and relate to others. This human connection is central to learning. No technology, no matter how advanced, can offer that same emotional support or sense of belonging as a good teacher can.
Partners not rivals
It’s not about choosing between teachers and AI. Instead, we should look at ways to use AI to support teachers, not sideline them. When done properly, AI can act like a digital assistant, handling the admin so educators can focus on what matters the most, their students. AI can track progress, suggest resources, and help personalise learning. But it works best when guided by skilled teachers who understand their students as more than just data points.
Apple co-founder Steve Wozniak has said that while AI is useful, real learning comes from engagement, curiosity, and critical thinking – qualities that only people can nurture. That’s why teachers must remain central in shaping how AI is used in schools.
Putting teachers at the heart of EdTech
To make EdTech truly effective, we need to involve teachers from the start of product development. That means giving them time and training to understand how these new tools work and letting their classroom experience guide the design process. Teachers know best what works and won’t, and the things they need from these tools. When educators help build and shape the technology, it works better for the people it’s meant to serve.
Fuel Ventures launches competition for firms with an AI co-founder
Looking ahead
When educators are sidelined, EdTech risks becoming more about novelty than impact. AI may be able to personalise content, but it cannot personalise care. True progress happens when technology is built to enhance, not replace, the teacher’s role.
The future of education isn’t about AI versus teachers, it’s about building better tools with teachers, for teachers. When innovation is shaped by real classroom needs, we get smarter tech, stronger outcomes, and a more human learning experience. That’s how we turn the promise of EdTech into lasting progress.