AI-based learning should lead to big money.
March 8, 2022
[This unedited press release is made available courtesy of Game Developer and its partnership with notable game PR-related resource Games Press]
Author: Serious Games Assocation For Immediate Release
LOS ANGELES - – Tuesday, March 8 -- A rapid uptake of AI-based learning products is driving a revised revenue forecast for that market. Metariverse, the leading analyst firm in the learning game market, is now projecting a five-year compound annual growth rate (CAGR) for the U.S. AI-based Learning market is a robust 27.8% and revenues tripling to $10.6 billion by 2027 in a report available from Serious Play Conference, the dominant gathering of professionals in the learning game market.
Market conditions are extremely favorable for developers with the demand high in all six buying segments and venture capital flowing to startups. The major revenue opportunities are in the corporate segment and the federal government agencies in the US. The US is the top buying country throughout the forecast period. Barriers-to-entry are falling fast. Developers no longer need to create their own proprietary, expensive to produce AI engine but instead can "rent" AI from cloud-based AI vendors such as IBM Watson or Microsoft Azure and buy relatively inexpensive premade and pretrained components in the growing number of online marketplaces. Startups are able to get to market very quickly.
Legacy suppliers are "buying their way in" via acquisitions of AI-based Learning startups. One interesting pattern in the M&A activity is that the acquisitions are by very large education publishers and tech giants. Education publishers that have acquired AI-based Learning companies include Wiley, McGraw-Hill, Pearson, Houghton Mifflin Harcourt, Barnes & Noble Education, Daekyo, Elsevier, Cornerstone OnDemand, VitalSource and Course Hero. Tech giants that have entered the AI-based Learning market via acquisitions include Apple, Snapchat, Medtronic, Informatica, Google, Experian, Microsoft, SAP and IBM.
Well-funded startups are coming on the market at a rapid rate. More than half (59%) of the 1,200 suppliers cited in the new Metariverse report have obtained private investment in the last two years.
To purchase Metaari’s new AI Learning Product report, go to The 2022-2027 US AI-based Learning Market - Serious Play Conference.
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