Artificial intelligence (AI) is reshaping education faster than many can realize or believe. According to a 2025 report by Microsoft, 86% of education organizations now use generative AI – the highest adoption rate of any industry and an uncharacteristically rapid pace for a sector which has historically lagged behind in technology adoption.
Across educational organizations, AI is moving from experimentation to impact. Each year, more institutions increasingly accelerate their use of AI. The global AI education market reached $7.57 billion USD in 2025, and is projected to exceed $112 billion USD by 2034.
Looking forward to the classrooms of 2026, AI will expand its stance as a powerful service for learners and teachers alike. From the earliest stages of education, AI-driven platforms are helping provide real-time personalized English instruction, helping level the playing field for young learners in developing countries.
AI’s impact extends across primary, secondary, and higher education, supporting personalized learning that adapts to individual needs, delivers instant feedback, enhances student engagement and outcomes, and reduces administrative demands on teachers.
An AIPRM report of U.S. students, for instance, found a 62% increase in test scores among those using AI-powered instruction systems, attributed to the technology’s ability to identify and address knowledge gaps before they develop into larger challenges.
“Instead of being confined to set moments, instruction can respond as learning happens, guiding students through their thinking and helping them build understanding in real time”, says Rajen Sheth, Founder and CEO of AI-powered edtech company Kyron Learning. The startup delivers personalized learning at scale, and raised $14.6 million USD in a Series A funding round.
At the same time as AI adoption in classrooms surges, companies across the globe confront an unprecedented skills crunch, with growing demand for talent capable of leveraging technology to drive innovation and growth. These challenges are inseparable: as AI reshapes business, it is also transforming how individuals are prepared for work.
In such a fast-moving landscape, higher education institutions are embedding AI, experiential learning, and challenge-based approaches into their curricula, alongside the rise of new institutions dedicated to digital transformation, technology, and data rather than traditional academic disciplines.
Democratization of Learning
Families who relocated recently to English-speaking countries often experience difficulties teaching the language to their children. English proficiency is widely viewed as a critical driver of future educational and economic opportunity for young children, although in regions like Latin America access to high-quality, in-person instruction remains limited to a small sector of families who can afford private lessons.
At this early stage of learning, AI-powered language tools are increasingly filling this gap. Experts expect it to play an even more significant role in the coming year, expanding access to effective, engaging English-language education at scale. Luis Von Ahn, founder of Duolingo, suggested on the No Priors podcast that AI will take on much of the instruction while teachers evolve into mentors or facilitators.
Buddy.ai was launched in 2017 to address this need. After he moved to the U.S. from Siberia, co-founder Ivan Crewkov had witnessed his preschool daughter’s difficulties with adapting to an English-language society.
The application has a multimodal AI tutor, Buddy, that interacts with students in real time and features a voice recognition technology specifically designed for children that complies with COPPA regulations.
Despite the precedents set for this technology in academia, Buddy.ai was the first company to successfully bring this concept to market:
“This is a game changer for teachers, since, in the past, they could only give students the practice of speaking in person, which was almost impossible in crowded classrooms”, explained Crewkov to Entrepreneur Magazine.
Research consistently shows that this approach is more effective than traditional learning methods.
AI-Powered Instruction and the Future of Schools
As per an October 2025 report by the Center for Democracy and Technology (CDT), 85% of teachers and 86% of students used AI in the preceding school year.
“I’m not surprised to hear that 85% of teachers have used it in some way…anything that helps a teacher save time is going to get taken up”, noted Joseph South, Chief Innovation Officer for ISTE+ASCD, a non-profit that provides resources for educators about educational technology, while in conversation with Education Week.
The CDT report also noted that 69% of teachers said AI tools have improved their teaching methods, while 55% agreed that it has given them more time to interact directly with students.
As 2026 unfolds, the use of AI-powered instruction is expected to continue growing amid rising teacher workload and burnout: it reduces administrative demands and offers a promising way to ease staffing shortages and allow educators to focus on teaching and student engagement.
Sheth said, however, that the challenge for educators is scale: “Even the best instructors can’t give every student timely, individualized support 24/7. Kyron helps close that gap while keeping educators firmly in control.”
AI-powered instruction platforms, such as Kyron Learning, help bridge differences in learning styles, cultural backgrounds, and prior educational experiences, with studies showing up to 70% higher course completion rates compared to traditional approaches.
“Rooted in learning science, [Kyron] adapts to each learner’s responses, providing timely feedback, surfacing misconceptions early, and supporting diverse learning needs across environments,” Sheth explained.
Opportunities and Challenges Students Face with AI
Most people can recall a moment in their education journeys when a lack of understanding and frustration made them want to give up. In crowded classrooms, that feeling can be particularly discouraging – but with Kyron’s instruction, students remain engaged, learning with greater confidence.
Kyron Learning is now available to all educational institutions and learning solution providers, partnering with a variety of organizations, including K-12 school districts and universities such as Western Governors University in Utah and the Illinois Institute of Technology.
Regardless, concerns have been raised about whether AI-powered learning could hinder students’ ability to form meaningful relationships with teachers and develop critical thinking and research skills.
“As many hype up the possibilities for AI to transform education, our research shows AI use in schools comes with real risks, like large-scale data breaches, tech-fueled sexual harassment and bullying, and treating students unfairly,” said Elizabeth Laird, director of the equity in civic technology project at CDT, to Education Week.
The CDT report also outlined that 70% of teachers worry that AI weakens critical thinking and research skills, and over half of the students agree that using AI in class makes them feel less connected to their teachers.
Sheth disagrees: “At the core, education remains human. The mentorship, connection, and inspiration that great educators provide cannot be replicated”, he continued, explaining that Kyron’s value is, “in reinforcing those strengths by supporting learning at scale,” he assured.
“The future is educators empowered by AI, not overshadowed by it”, he added.
In 2026, learning how to use these learning tools will be crucial. Experts, in fact, have said that the best way for schools to manage AI risks is through teacher training and student literacy lessons.
By that measure, schools and districts are falling behind: although most teachers and students use AI, the CDT report shows that under half have received no training or guidance from their institutions.
“What schools need to do is help teachers and students use [AI tools] in the right and best ways,” South agreed.
Equipping Learners for a Technology-Powered Economy
According to a report by McKinsey, 92% of business leaders expect to boost AI spending over the next three years. Organizations using AI-powered training report clear gains in employee performance, engagement, and retention.
Positioning AI a strategic device and underscoring the need for higher-education institutions to prepare students for this AI-centric workforce is therefore critical.
Leading universities and institutions are already actively redefining their classrooms to align with the demands of an AI-driven economy. The Tecnológico de Monterrey (Tec), a private university based in Monterrey, Mexico, actively redefines the curricula to align with the demands of an AI-driven economy.
Tec has woven AI, experiential learning, and challenge-based education throughout its undergraduate, graduate, and professional programs.
At Tec, they emphasize real-world problem solving, interdisciplinary collaboration and strong-industry connections to expand digital skills training, certification and workforce opportunities for students– working with partners such as Salesforce, Udemy, AWS, and Oracle, in addition to other global networks like the World Economic Forum Foresight Network and the AI Global Education Network.
Tec’s business programs register an employability level of over 93% just 3 months after graduating.
An alternate institution that has recognized the need to prepare students for the digital economy is ISDI (Instituto Superior para el Desarrolo de Internet), a digital business school in Madrid, Spain that offers master’s degrees and executive programs in digital business, technology, and innovation to equip professionals with these skills.
ISDI utilizes applied learning, continuous reskilling, and close collaboration with industry, equipping students with both technical capabilities and the strategic thinking required to navigate AI-enabled workplaces.
Roughly 90% of ISDI graduates work in fields related to their studies within 6 months of completing their programs.
These institutions have understood that, in 2026, higher education will continue to adapt learning models to prepare students not only to use AI tools, but to thrive alongside them in the modern workforce.
“The value of human skills cannot be replicated by computers. The future belongs to those who can balance technological and human skills to solve problems”, wrote Bernard Marr, world-renowned futurist, author, and strategic advisor who specializes in AI data and digital transformation, in Forbes.
Grace Goldstone is a reporter for Latin America Reports. Originally from the UK, she currently lives in Medellín, Colombia. Grace holds a master’s degree in Politics from the University of Edinburgh and previously interned at the UK House of Commons. Her work has also appeared in WIRED en Español and Entrepreneur Magazine.
References
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https://www.aiprm.com/en-gb/ai-in-education-statistics/
Business Insider. “Duolingo CEO Says AI Will Transform Schools and Childcare.” Accessed December 29, 2025.
https://www.businessinsider.com/duolingo-ceo-schools-ai-future-childcare-2025-5
Center for Democracy & Technology. Hand in Hand: 2025 Polling on Artificial Intelligence and Education. October 2025.
https://cdt.org/wp-content/uploads/2025/10/FINAL-CDT-2025-Hand-in-Hand-Polling-100225-accessible.pdf
Conecta Tec. “Crear progreso con egresados: Visión de la Escuela de Negocios del Tec.” Accessed December 17, 2025.
https://conecta.tec.mx/es/noticias/nacional/educacion/crear-progreso-con-egresados-vision-de-la-escuela-de-negocios-del-tec
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https://www.engageli.com/blog/ai-in-education-statistics
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https://spanish.entrepreneur.com/emprendedores/entrevista-asi-es-como-buddyai-se-ha-posicionado-en/482535
ISDI. “ISDI Institutions Overview.” Accessed December 17, 2025.
https://www.educations.com/institutions/isdi
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https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/superagency-in-the-workplace-empowering-people-to-unlock-ais-full-potential-at-work
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https://windpress.info/en/press-release/851649/ai-in-education-report-insights-to-support-teaching-and-learning-microsoft-education-blog
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https://www.mdpi.com/2227-7102/15/2/113
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https://www.precedenceresearch.com/ai-in-education-market
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https://link.springer.com/article/10.1007/s40593-015-0065-9