Season 6, Post 28: We do need some education
The lyrics from Pink Floyd’s “Another Brick In The Wall” have achieved a certain notoriety. While they held (and perhaps still hold) appeal for a certain disaffected generation, they are also fundamentally incorrect. A recent OECD report cited in The Economist highlights that in a typical developed world country pupils are no more numerate or literate today than they were 15 years ago. Attainment peaked in the US in the early 2010s. In many European countries, levels have been steadily falling for years.
First identify the problem, then potential solutions. Sure, the pandemic had a major negative impact on education globally, with many schools shuttered over this period and not all pupils able to get online or learn fully. However, the data suggest problems began well prior to this event. Policymaking may be partly to blame, particularly in the US, where education is no longer a bipartisan issue. Cultural considerations and mental health factors have impacted policy progress. Poor remuneration, especially in the state sector, may also have played a role. Better budgets for schools would almost certainly help.
Our own work on this topic (which we first explored over a decade ago; also, see here, for a more recent update) suggests that the education sector is ripe for digitalisation. More online tools should – in theory – be able to benefit both pupils and teachers, particular if it were to permit for the more efficient tailoring of content. The power embedded in AI should only accelerate this process. The prize is huge, given that education is worth over $1.2tr in the US alone (at least four times the size of the American advertising market) and perhaps $5tr globally.
Sceptics (including ourselves) would point to the gulf between the hype and reality of AI. The good news is that the range of online and increasingly more personalised learning tools are improving. Think of Duolingo’s famous green bird or even the answer-engine that is ChatGPT as just the beginning. Meanwhile, for teachers, a digital toolkit may help them to free up valuable time, perhaps in the preparation of lessons or the ability to produce tests swiftly for pupils at different levels of learning. Check out products such as MagicSchool, TeachMate or Teachy. At the least, think of AI as a complement to the ways in which both pupils and teachers have been doing things for generations. Technology is an enabler, a means of boosting productivity.
24 July 2024
The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.
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Alex Gunz, Fund Manager
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