Denis Grankin Head of Sales Department

How AI is Transforming the eLearning Industry [A Comprehensive Overview]

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AI in eLearning

As the world continues to go digital, the eLearning industry is also undergoing significant changes. One of these changes is the introduction of artificial intelligence (AI) into eLearning. According to research, the e-learning market is projected to reach $848.12 billion by 2030. At the same time, the AI market in education is expected to exceed USD 30 billion by 2032. Big things are coming.

Business owners in the education sector need to be aware of the impact of AI on eLearning to stay ahead of the competition and provide their learners/employees with the best learning experience. In this case, AI software development for eLearning needs may be required. It can be AI in an LMS or AI integrated into another employee management system.

In this article, we'll discuss how AI is transforming the eLearning industry, what benefits it can offer businesses, and how to use AI to stay one step ahead.

Artificial Intelligence in eLearning market overview

Artificial Intelligence has been drastically changing the e-learning industry for many years. And the result was not long in coming:

  • 93% of global companies are switching to online learning
  • 77% of companies have implemented eLearning in their operations
  • 42% of companies have experienced an increase in revenue after introducing eLearning

According to recent research, the use of Artificial Intelligence (AI) in education is on the rise and shows no signs of slowing down. Let's take a look at some of the latest insights into the use of AI in eLearning:

  • The global market for Artificial Intelligence in Education is expected to reach $17.8 billion by 2027.
  • According to other data, the AI in eLearning market was valued at $4 billion in 2022 and is projected to grow by more than 10% between 2023 and 2032, driven by the growing shift to personalized learning.
  • Almost 74% of respondents believe that e-learning makes education more accessible than ever. However, at the same time, its quality is getting worse. And this is a red flag for AI developers and those in education.

If implemented properly, with inclusivity, accessibility, and quality in mind, AI in education is expected to benefit everyone: students, teachers, and organizations. Some of the obvious benefits include the automation of administrative tasks and processes, personalized learning, and the ability for teachers to focus on individual student mentoring. Recruiting software development is also likely to benefit from the introduction of AI features.

AI in education market AI in Global education market

How will AI affect education?

There are four hot areas of AI application in education: analytics, language, vision, and voice. However, analytics and language are believed to have the greatest impact on eLearning:

AI affect education

In terms of promising applications, AI is likely to have the greatest impact on testing and assessment, language learning, higher education, corporate training, and upskilling.

Let's also not forget about how AI can be used in recruiting. Recruiting software development is one of the first areas where AI can be applied if you want to hire employees efficiently.

AI-based learning: How does a business use Artificial Intelligence in eLearning?

In 2022, 25% of respondents reported the effective implementation of Artificial Intelligence in education-related business processes. 44% of those surveyed said they plan to include AI in their short- and medium-term plans. At the same time, the number of those who are not even at the planning stage has decreased from 24% to 14%.

Why adopt AI in eLearning? Currently, there is an ambitious outlook on the prospects of Artificial Intelligence for businesses and educational institutions. This is primarily because AI-based eLearning drives innovation and makes work and learning more flexible.

The most convincing reasons for introducing Artificial Intelligence are as follows

  • Improving the quality of customer service - 75%;
  • Cost reduction - 45%;
  • Getting ahead of competitors - 43%.

Nevertheless, both learning outcomes and learner experience are still key reasons for implementing AI in eLearning:

AI-based learning

AI technologies are expected to add value to training processes and customer support. In terms of customer support, in 2023, AI could improve customer enrollment, marketing, recruiting, and support throughout the customer/learner journey.

The Use of Artificial Intelligence in E-Learning

Below you will find some specific examples of how Artificial Intelligence can be utilized in eLearning for business.

Learning analytics

AI can analyze training data to gain insights into employee performance, learning patterns, and training effectiveness. This can help companies identify areas for improvement and optimize curriculum accordingly.

Recommendation systems

AI-based recommendations for eLearning can suggest relevant learning materials to employees according to their interests, skills, and previous progress. This can help employees discover new topics and refine their skills.

Language translation

AI-powered translation tools can automatically translate training content into different languages, thus enabling companies to provide multilingual training.

Speech recognition and natural language processing

AI can be utilized to create speech recognition and natural language processing tools that can be integrated into an AI-based eLearning platform (AI in LMS, ATS, etc.). This would result in interaction with learning materials using voice, making learning more accessible and effective.

Content creation

AI technology may be applied to create training content such as quizzes, simulations, and case studies. In this way, businesses can save time and resources while ensuring that their content is relevant and engaging.

Adaptive learning

AI can deliver a learning experience tailored to each employee's needs. As a result, it can increase employee engagement and retention and ultimately lead to better learning outcomes.

artificial intelligence in elearning

Real-life examples of AI in eLearning for business

Below are some real-life examples of how companies are using Artificial Intelligence (AI) in eLearning to train employees:

  • McDonald's: The fast food giant has launched an AI-powered voice assistant called Archways to Opportunity to provide personalized training and development for its employees. The machine learning-based assistant identifies the strengths and weaknesses of employees and offers them customized training programs to improve their skills.
  • H&R Block: The tax preparation company has implemented an AI-based chatbot called Block Advisors to train and support its employees. Using natural language processing, the chatbot answers employees' questions and provides real-time tax preparation recommendations.
  • Hilton Hotels: The hotel chain has introduced an AI-based learning platform called Hilton University, which provides its employees with a best-in-class ongoing education system to help them pursue education wherever they are.
  • Ford: The car manufacturer has introduced an AI-based training platform called FordPass. FordPass is an example of how AI can be utilized to train employees. For example, service technicians learn to interpret data provided by AI algorithms to offer better service to customers.

The ways AI is transforming eLearning

Artificial Intelligence (AI) is changing many industries, and eLearning is no exception. In recent years, we have seen significant advances in AI technology that unlocked new ways to deliver personalized and adaptive eLearning.

Computer-Assisted Instruction (CAI)

This is a type of e-learning that relies on computer software to deliver training to learners.

Computer-assisted instruction in action:

  • Adaptive learning. In this case, the software adjusts the content and pace of learning based on the learner's ability and progress. This can help users stay interested and motivated.
  • Natural language processing. AI-powered software can understand and interpret learner input, such as written answers or verbal instructions. This makes the learning process more interactive and engaging.
  • AI can also be used in CAI to assess student performance, for example, by automated scoring of written papers or tests.

Virtual Assistants

These tools come in many forms, such as chatbots, voice assistants, or avatars, and can be integrated into an AI-powered eLearning platform or training course to provide learners with real-time feedback and guidance.

Advantages of virtual assistants:

  • Instant help and support for learners without the need for human intervention. This can lead to increased engagement and motivation.
  • Personalized learning experience. A virtual assistant can recommend additional resources or exercises for a student who is struggling with a particular concept, or provide positive reinforcement for a student who is doing well.
  • Reduced workload for teachers as virtual assistants perform routine tasks such as answering FAQs, providing reminders, and sending notifications.

Intelligent Agents

These agents are essentially AI-powered virtual assistants that provide students with personalized guidance, recommendations, and support.

Some examples of intelligent agents in e-learning:

  • SmartBook, developed by McGraw-Hill Education. SmartBook is a personalized eLearning platform that uses proven learning theories to help learners consolidate knowledge in long-term memory and develop higher-order thinking skills.
  • Watson Tutor by IBM. Watson Tutor is an AI-based e-learning system that can analyze students' written answers to open-ended questions and provide personalized feedback and suggestions for improvement.
  • Cognii. Essentially, it's a handy AI-powered virtual assistant to assist students in question-and-answer scenarios with a set of pre-written comments.

Intelligent Tutoring Systems

Intelligent Tutoring Systems (ITS) are a type of artificial intelligence technology used in eLearning to provide personalized instruction and support to learners. These systems use algorithms and machine learning techniques to analyze learner performance, identify weaknesses, and provide personalized feedback to help learners succeed.

One of the key benefits of ITS is its ability to provide personalized learning based on a learner's unique needs and talents. As a result, students can better grasp complex concepts, improve their progress, and achieve their learning goals more efficiently.

In addition, ITS can automate many routine tasks, such as testing and assessment, and thus reduce the workload of teachers.

Educational Data Mining

Educational data mining is the process of using data mining techniques to analyze data generated by AI-powered e-learning platforms, and educational systems, as well as AI-based ATS, AI-powered LMS, CRM, and ERP, to improve teaching and learning outcomes.

Educational data mining:

  • Provides insights into which learning strategies and activities are most effective.
  • Determines if students are having difficulty with a particular concept and then provides additional resources or exercises to help them grasp the concept.
  • Analyzes the effectiveness of educational interventions in teaching methods, thus ensuring more informed decision-making.


One way to use Artificial Intelligence in gamification is through adaptive game design, where the game adapts to the learner's abilities and progress. For example, the game can increase or decrease the difficulty level depending on the learner's performance or change the pace of the game to better suit the learner's learning style.

Another way AI can be applied to gamification is through data-driven learning analytics, where the data generated by a game is carefully analyzed to gain insights into learner behavior and performance. This can help educators and designers determine which game mechanics and elements are best suited to promote learning.

Automated Assessment

Automated assessment in eLearning is when AI-powered tools are applied to assess how well learners are mastering the learning material. These tools can score multiple-choice tests, analyze written or spoken responses, and provide learners with immediate feedback.

Automated assessments provide a more reliable and fair assessment than human assessments, as AI tools provide a more objective and consistent way to analyze responses. As a result, learners receive a fair and accurate assessment, with no chance of human bias or error.

Conversational Interfaces

To be more precise, conversational interfaces are chatbots that mimic human communication. They are a hot new trend in digital product design.

A good example of a conversational interface in eLearning is Duolingo, a language learning app that uses a chatbot to help learners hone their language skills.

Another example of a conversational interface in eLearning is Quizlet, a learning app that uses a chatbot to help learners navigate content. The chatbot asks users questions and provides feedback based on their answers, helping them to better master the subject matter.

Conversational interfaces may also be utilized to provide real-time support to learners, employees, or customers.

Cognitive Computing

Cognitive computing is an exciting application of AI in eLearning that has been gaining momentum in recent years. Essentially, cognitive computing is a form of AI that is designed to mimic human thought processes, including reasoning, decision-making, and problem-solving. Cognitive computing can be harnessed to build intelligent tutors and virtual assistants.

Moreover, cognitive computing in eLearning can process and interpret natural language. This means that learners can interact with AI eLearning platforms using natural language, just as they would with a human teacher.

Benefits of using AI in e-learning

In a nutshell, AI in e-learning personalizes learning by tailoring content to individual needs, making it more engaging and understandable. It also simplifies assessment and provides timely feedback to learners and teachers. Let's now take a closer look at the significant benefits of AI in e-learning.

Learning is personalized

Machine learning provides the most relevant learning experience possible. When implemented in eLearning, Artificial Intelligence produces courses tailored to users based on their learning styles, experience, and knowledge gaps from the outset. The learning material can change as learners master it. This is called adaptive learning.

AI in eLearning is especially useful in enterprise learning (AI in LMS), where employees can track their progress with self-service tools, such as analytics.

Chatbots to meet the needs of learners

Along with the rapid rise in business demand for chatbots such as GPT-3 and GPT-4, bots are also making a significant impact in eLearning. Bots accelerate the learning process as there is no need for teachers or tutors. In addition, bots are cost-effective, making the introduction of Artificial Intelligence in eLearning more lucrative.

Assessment in eLearning becomes easier

Artificial Intelligence takes the labor-intensive, routine, and error-prone work of user assessment out of the hands of educators. AI-powered tools can be used to compare test results to see if they are similar and get results on specific indicators quickly. This speeds up both the learning process and the time it takes to move from learning to practice.

Training courses are designed faster

AI tools can significantly speed up the creation of training courses through language modeling. This programming method teaches machines to write content the way humans do. As a result, you can get huge amounts of the content you need in less time, if necessary. If you used to have to wait for weeks, now it's a matter of minutes.

In addition, AI in eLearning can enrich the ready-made content with the right words (useful for search engine optimization) or make it targeted to a specific audience.

Education gets more accessible

Artificial Intelligence in e-learning makes knowledge accessible to everyone. People with special needs or disabilities can equally take advantage of the limitless possibilities of online learning and apply their knowledge in practice.

Inclusivity can be enhanced by training the system with special words, as well as by taking advantage of various applications and methods of natural language processing (NLP) and artificial intelligence (AI):

  • Text classification/Text summarization: Processing, analyzing, and otherwise handling text data.
  • Sentiment analysis: Analyzing a text to determine the author's mood or opinion about a particular subject or object.
  • Speech recognition: Converting spoken language into a written output using machine learning algorithms and models.
  • Language translation: Automatically convert text from one language to another.
  • Question-Answering systems: Creating AI models to answer user questions based on a given set of textual data.
  • Natural language understanding: Teaching machines to understand natural language, including idiomatic expressions, figures of speech, and ambiguity.
  • Emotion detection: Detecting emotions in text data, including feelings, tone of voice, and mood.
  • Language modeling: Create a statistical language model to be used for a variety of NLP applications.
  • Named entity recognition: Detect and extract objects such as names, dates, and locations from a given text.

Given the above, each learner is provided with the appropriate learning experience.

Time and effort savings

AI in eLearning automates content translation, labeling, grouping, assigning courses to users, and creating tests.

Deep data analytics

Learning analytics tools provide insights into every aspect of an online course and learner experience. Data analytics is also a way for education providers to continuously improve their offerings.

Unobvious benefits of AI in eLearning

As well as the clear benefits of AI in e-learning, there are also less obvious but notable benefits worth exploring. Let's take a closer look at some of these hidden benefits that play a crucial role in enhancing the learning experience.

Inclusive learning-friendly environment

With machine learning algorithms, we can detect and eliminate bias in content and assessments, ensuring that all students have the same opportunity to learn and succeed. Additionally, AI can help identify students who are falling behind early on and offer them targeted exercises to help them catch up, thus bridging the performance gap between learners.

Fostering creativity and innovation

By automating routine tasks such as testing and assessment, educators can free up more time to focus on developing engaging and interactive curricula that inspire students to think critically and creatively. Artificial Intelligence can also open up new approaches to teaching and learning that educators may not have thought of before.

Getting ready to meet the challenges of the future

Data analysis, problem-solving, and critical thinking are all areas to be covered by AI in eLearning. As AI becomes more widespread in business, these skills will become more and more vital to success, while AI-powered eLearning platforms will be better equipped to meet the challenges of the future.

Advantages of using AI in eLearning in terms of corporate training

Let's discover how AI is rapidly transforming corporate training and why you should consider incorporating it into your employee learning strategy.

Upskilling is enhanced and automated

AI in eLearning for business can help streamline and automate the upskilling process. AI identifies knowledge gaps and upskilling needs in real-time, providing employees with personalized learning experiences tailored to their unique needs and skills. In addition, by automating routine tasks such as content creation, assessment, and certification, companies can also save time and resources, freeing up employees to perform other high-value tasks.

Employee engagement and retention improved

By providing employees with interactive and engaging learning experiences involving gamification, social learning, and other best practices, companies can boost employee motivation and engagement. This is expected to lead to higher retention rates and better performance.

Leading market positions

The use of Artificial Intelligence in eLearning can help companies stay ahead of the curve and remain competitive in a rapidly evolving market. By equipping employees with the latest knowledge and skills, companies can stay on top of industry trends and best practices, which can result in increased innovation, productivity, and revenue.

Concerns of AI in eLearning

Alongside the benefits of using AI in e-learning, there are concerns that need to be managed. The main ones are discussed below.

AI algorithms can be biased

As AI algorithms learn from historical data, they can be unintentionally biased or discriminatory, especially in areas such as predictive analytics. For example, an AI algorithm may be more likely to predict that users from certain demographic groups will have trouble mastering a certain subject. This can lead to a self-fulfilling prophecy.

AI to replace humans

Another concern is that AI is likely to replace teachers, especially when it comes to assessment and scoring. However, while AI-powered assessment tools can save time and resources, they can also lack the sensitivity and empathy of a human teacher, resulting in a less personalized learning experience.

Data privacy and security

There are concerns about the impact of Artificial Intelligence on data privacy and security. As AI algorithms collect and analyze large amounts of data, there is a risk that this data could be compromised or misused, especially if it contains sensitive personal information.

How to deal with concerns about using AI in eLearning

Below are some of the ways to overcome the above concerns.

Setting ethical standards and ensuring transparency

To prevent bias in artificial intelligence algorithms, online education providers are expected to set ethical standards and ensure transparency in the data they collect and how they use it. Algorithms should also be trained on different data sets to prevent existing biases from becoming entrenched.

Matching AI with human teachers

AI-based eLearning software may lack human sensitivity and empathy. To address this challenge, AI needs to be paired with human teachers to deliver a personalized and integrated learning experience.

Promoting a culture of privacy and data security

Online education providers are expected to promote a culture of data privacy and security. This includes implementing robust security measures and adhering to appropriate data privacy policies.

Fostering transparency and cooperation

Finally, to build trust in the use of AI in eLearning, educators, and eLearning software providers are encouraged to be transparent and collaborative. This involves sharing information about the use of AI and receiving feedback from students, teachers, and other stakeholders to improve the effectiveness and ethical use of the technology.

AI in eLearning: Obstacles to overcome

While eLearning has much to gain from AI, there are still obstacles to overcome.

  • Organizations (54% of respondents) are finding it increasingly difficult to hire talent to handle the challenges associated with implementing AI learning.
  • Another reason (half of the respondents) is the lack of data literacy required to implement AI-based solutions such as intelligent tutoring systems, or virtual assistants.
  • Low expectations of return on investment (25%) and high infrastructure costs (31%) also hold back the adoption of AI in eLearning. In other words, it is hard to predict how profitable it would be for an organization to implement AI to solve educational tasks.

AI in eLearning

The good news is that there is a proven way to overcome any obstacle to the adoption of AI eLearning.

You can turn to IT outsourcing and hire software developers to create an AI software solution for internal training. When it comes to training or upskilling your employees, artificial intelligence in recruiting in 2023 can be of great help. For example, you could consider implementing AI into your learning management system (LMS).

Start with an MVP and then gradually enhance your employee management system (whether it's an LMS or another AI eLearning system), and you'll end up with a feature-rich, web-based AI-powered eLearning platform. Also, consider the significant time and cost savings that outsourcing software development usually brings. All of your training needs can be met by turning to IT outsourcing services.

Do you need Artificial Intelligence to meet your eLearning needs?

Now that you know how powerful AI can be for eLearning, you can decide for yourself whether you need to implement this technology. One thing is clear for now: to achieve your business goals faster, you need to act faster. AI in eLearning can jumpstart this process.

With a solid AI-powered eLearning software solution at your fingertips, you can not only upskill your employees but also fill in gaps in industry expertise. Where to start?

You can start with the following steps:

All that is left is to onboard the development team. And here we are. You are one step away from getting AI-powered software to handle your eLearning challenges.

Bottom line

In recent years, eLearning seems to have become the go-to solution for those seeking to gain knowledge from anywhere in the world. E-learning has no borders, and that is its greatest advantage. But there are still many gaps to be bridged to make eLearning more personalized and effective.

Artificial Intelligence in eLearning is a key tool for the rapid growth and transformation of education. And you have a chance to master this technology and offer the market a powerful, up-to-date, and most importantly, AI-powered platform.

Do you have any questions? Would you like to discuss the project? Then contact us at any time that suits you. Artificial Intelligence in eLearning is set to revolutionize the way we think about learning and career development, and you can join this world-changing technological revolution.

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