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India’s education system needs AI – But can it deliver?

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By Sumit Shukla, CEO, Scholars Merit Pvt Ltd.

A third of young people worldwide surveyed by UNICEF say their education isn’t preparing them for jobs, and this is also a concern in India. Despite the growth of India’s $117 billion education industry and the opening of new colleges, many young Indians are graduating without the necessary skills, which affects the economy at an important time.

AI is helping to address this issue by changing the way we learn and teach. It is making education more personalised, efficient, and aligned with real-world needs. The global AI in education market, valued at $5.88 billion in 2024, is expected to grow at a rate of 31.2% annually from 2025 to 2030, according to Grand View Research. AI has the potential to help close the skills gap and better prepare students for the workforce.

Personalised learning and skill development

AI’s impact on education is particularly evident in personalised learning. Adaptive learning tools analyse a student’s strengths and weaknesses, tailoring lessons to meet individual needs. These platforms offer instant feedback and suggest resources, allowing students to progress at their own pace.

This is especially crucial for engineering students, who must stay updated on key skills like machine learning, cloud computing, and cybersecurity. AI-powered platforms now offer learning paths and hands-on projects, preparing students for the evolving job market. With the increasing adoption of technologies such as blockchain, IoT, and AR/VR, universities are also updating their curricula to ensure students are equipped with the skills demanded by employers.

Better assessments and analytics

AI is also transforming how students are assessed. Traditional grading methods can be slow and subjective, but AI tools provide quicker, more consistent evaluations. AI algorithms can grade essays and projects, offering detailed feedback to help students improve.

These tools also track attendance, participation, and performance, providing teachers with valuable insights into student progress. This helps educators identify students who may need additional support before it’s too late, ensuring timely intervention.

Smarter Administration and Curriculum Design

AI is reducing administrative tasks like enrolment, scheduling, and resource management, allowing educators to focus more on teaching. AI also plays a role in curriculum design by analysing industry trends and suggesting updates to keep courses relevant. For example, the growing demand for AI and data analytics skills has prompted universities to integrate these topics into their programs, helping students stay ahead of the curve.

Partnerships between platforms and universities

AI-driven platforms are collaborating with universities to bridge the gap between education and industry. These partnerships focus on equipping students with the in-demand skills needed in IT and emerging technologies. A recent SAP report highlights that 66% of mid-sized businesses in India plan to adopt generative AI, but 39% struggle to find skilled professionals. By incorporating AI into their programs, universities and colleges are helping close this talent gap, making graduates more job-ready.

Growing use of AI in education in India

The growing enthusiasm for AI in education is evident in India as well. According to a Chegg.Org annual survey, 83% of Indian students want AI integrated into their learning, the second-highest percentage after Kenya. Furthermore, 46% of Indian students feel their degree would be more useful in an AI-assisted workplace, highlighting the importance of AI in preparing them for the future.

Interestingly, 44% of Indian undergraduates have used generative AI (GenAI)—AI capable of generating text, images, and other media—for their university studies, surpassing the global average of 40%. For those who have used GenAI, 60% say it helps them learn faster, 55% appreciate its ability to foster creativity, and 51% find that it frees up their time for other activities.

However, while Indian students see GenAI as a valuable tool for enhancing their learning experience, many still acknowledge areas for improvement. Nearly half (49%) feel human expertise should be involved in generating answers, and 28% express concerns about receiving incorrect or misleading information. Moreover, 78% of Indian students believe universities should rethink their assessment methods to account for the use of GenAI tools. Among them, 59% want better guidance on acceptable use, and 37% suggest more oral assessments like presentations or speaking exams.

Challenges and what’s next

Data privacy is a primary concern, as AI platforms often collect large amounts of student information. Institutions must implement strong policies to protect this data. Access to technology and internet connectivity is another challenge, particularly in underserved regions, and addressing the digital divide will require significant investments in infrastructure and training.

Looking ahead, AI’s role in education is set to grow further. The e-learning market is expected to exceed $460 billion by 2027 (as per Business Research Company), and tools combining AI with virtual and augmented reality will offer students immersive, hands-on learning experiences. AI will also play a key role in lifelong learning, providing professionals with flexible courses that evolve with their career needs. Moreover, ethical AI practices will be a key focus, ensuring that innovations align with societal values and are implemented responsibly.

AI is making learning more personalised, relevant, and efficient. Engineering students, in particular, stand to benefit as they prepare for a tech-driven future. Universities and AI platforms are working together to close the skills gap and ensure students are ready for tomorrow’s workforce.

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