Schools face hard choices as AI tools flood classrooms

School districts are weighing a fast-growing wave of AI products that promise to flag struggling students, track attendance, support reading instruction and give teachers faster insight into classroom performance. The decisions carry major financial stakes: the overall U.S. education technology market generated almost $48 billion in revenue in 2024 and is expected to reach more than $90 billion by 2030, while the AI in education market generated about $2.5 billion last year and is expected to exceed $15 billion by 2033.

District leaders say the central challenge is separating useful tools from products that add little value or create new risks. Sumner County Schools in Tennessee piloted Coursemojo to address plateauing middle school reading scores, while Allentown School District in Pennsylvania uses a two-phase AI review process focused on student safety and data security. Vendors there must state that student data will not be sold or used to train AI models.

Privacy, bias and procurement concerns are pushing some states and large districts to create stronger guardrails. Pennsylvania, New York City and Chicago have added review standards or guidance, while lawsuits over Gaggle and Los Angeles’ $3 million chatbot purchase from AllHere have underscored the risks. Experts say districts should test tools with adults first, keep educators in control and evaluate whether products are accessible, explainable and grounded in real educational needs.