Strategos Insights

Strategos Director of Enterprise Growth and Investments offers commentary on new report on AI in higher ed

Written by Kevin Jenkins, Director of Enterprise Growth & Investments | Jul 19, 2024 3:28:59 PM

Kevin Jenkins, Strategos Director of Enterprise Growth and Investments, offers his perspective on the Bondcap report "AI & Universities," emphasizing the rapid adoption and significant impact of AI in education.

Drawing on key findings from the report, Kevin provides an in-depth analysis of how AI is transforming the educational landscape, from the acceleration of AI technologies to the shift towards skills-based hiring. Below are his insights summarized from the Bondcap report.

The report highlights that we live in extraordinary times, experiencing a monumental business and societal inflection point. The unprecedented momentum and metrics of ChatGPT, including its rapid user growth, usage, and monetization, are unparalleled. Massive investments in AI by the world's most valuable companies, along with an influx of other capital, underscore the significance of this technological revolution.

As these companies vie for the next generation of computing, often led by founders who have a history of being disruptors, regulators in America and Europe are simultaneously attempting to rein in Big Tech amidst its most significant competitive threats in decades. This critical juncture calls for collaboration among industry, government, and higher education to leverage AI for the enhancement of freedom and democracy. The actions taken in the next five years will be pivotal, with higher education needing to take a leadership role alongside industry and government.

The rapid advancement of AI, rooted in the history of learning, affects all forms of learning, teaching, understanding, and decision-making, presenting an opportunity to harness AI for the greater good. The report begins with an overview, followed by an examination of the unprecedented growth in AI usage and investment, and explores the transformative potential of AI in higher education.

Kevin Jenkins' Financial Takeaways

Rapid AI Adoption

ChatGPT reached 1 million users in just 5 days, faster than any other product launch in history.

Fastest Software Revenue Ramp

OpenAI hit a ~$2B revenue run-rate within the first year of ChatGPT's launch.

Education Cost vs. Salary

The average cost of a four-year degree is $109K (public) and $223K (private), while graduates start with an average salary of $60K.

Student Debt

The average student loan debt in the U.S. is $1.7 trillion, with graduates taking 20 years to repay.

Teacher Optimism

75% of K-12 teachers are optimistic about AI in education, despite 90% feeling unsure where to start.

AI-Powered Personalization

AI tools like Khan Academy’s Khanmigo offer one-on-one, personalized tutoring at scale.

Tech-Driven Learning

AI will make learning more accessible, with tools providing real-time feedback and personalized content.

High Investment in AI

  • Microsoft: $14B in AI-related capex in Q1, a 79% year-over-year increase.
  • Google: $12B in AI-related capex in Q1, a 91% year-over-year increase.

AI as a Game Changer

AI is set to drive the fastest and biggest transformations in education, with ChatGPT securing 100 million users within months, a feat that took Instagram 30 months to achieve.

Shift to Skills-Based Hiring

Employers increasingly favor skills-based hiring, with 70% of companies prioritizing skills over degrees, prompting universities to adapt their programs accordingly.

For more details, you can access the Bondcap report here.