Market Overview

Based on sales from service providers, the generative artificial intelligence (AI) services market in the education and training sector is expected to grow rapidly from 96.3 billion yen in FY2025 to 212.5 billion yen in FY2030. The figure is equivalent to 220.7% of the size in FY2025.

As the generative AI services in the education and training sector underwent the initial phases centered on proof of concept (PoC), generative AI features have become standard in learning support services and training platforms. Following their adoption by municipalities and companies, these services entered the prevalence and expansion phases after FY2025. Additionally, the Ministry of Education, Culture, Sports, Science and Technology (MEXT) has established guidelines for using generative AI and clarified its usage policy. These applications have quickly spread nationwide and further boosted the market. These applications include responding to nationwide shortages of teachers and instructors, as well as their workstyle reforms, and the growing demand for reskilling (learning new expertise and skills) and in-house training in conjunction with companies’ ongoing human capital management.

When observing the market by segment, private education services and corporate training platforms dominate. In the private education services segment, generative AI-equipped services are driving the adoption of paid licenses, as these features provide added value, such as higher per-student revenue and reduced membership churn, and personalized learning experiences tailored to each learner. In the corporate training platforms segment, the adoption of generative AI has enabled companies to develop educational materials and operate training programs in-house, reducing costs and workload. This has increased large-scale investments in the platforms. The school education segment is currently transacting a relatively small amount, due to the GIGA School program, which provides each student with a personal computer combined with free tools and operating system (OS) standard features. However, the number of child and student users in primary, junior high, and high schools is expected to rise toward FY2030. They are expected to form a gigantic user base in the future.

Noteworthy Topics

Generative AI Services in the Education and Training Sector Becoming Communication and Pacing Partners

In the education and training sector, generative AI is evolving into communication and pacing partners that are available 24/7.

Thought-provoking AI tutors are being adopted in the school education and private education service segments. Rather than providing answers easily, these tutors encourage independent thinking by asking students questions. Image recognition technology allows students to submit questions by photographing a handwritten answer sheet, while AI-powered audio English conversation practice enables students to converse with AI, which eliminates shyness when speaking an unfamiliar language. AI and AI-powered tools eliminate the psychological and technical burdens that students face, such as manually entering questions or being too shy or hesitant to speak up. These tools provide an environment in which students can study, learn, and ask questions at any time.  Meanwhile, the corporate training platform segment has shown progress in the practical application of “in-house development of training content,” which involves the instant creation of quizzes and courses from internal materials, and “AI-powered automatic evaluation through role-playing.”  In every educational and training setting, personalized learning experiences tailored to each learner and reduced workloads for instructors and operators are about to be achieved simultaneously.

Future Outlook

The domestic generative AI services market in the education and training sector is expected to develop in the following ways.

1) A program will be established, which ensures availability without entering specific instructions and encourages independent thinking by asking questions without providing easy answers.
2) AI usage will be safely secured by promoting accuracy and taking measures against incorrect answers based on reliable sources, such as textbooks and internal materials, in combination with monitoring by instructors.
3) There are efforts to align with traditional learning management systems. This allows students to ask questions at any time 24/7, thereby preventing setbacks and reduces instruction processes while providing numerical evidence of learning outcomes. Additionally, learners will be provided with personalized learning experiences through daily interactions and answer histories, which detect declining learning intentions early on.

Research Outline