Education
Beyond the Buzz: Investors Call for Grounded AI Innovation in Indian Classrooms
At a time when Artificial Intelligence (AI) headlines dominate global discourse, a quieter but more consequential conversation is unfolding in India’s education sector—one that cuts through the hype to explore whether AI is genuinely improving learning outcomes or just riding a wave of fascination.
In its latest article titled “Not Just Hype: What Investors Really Think About AI in Indian Education”, Entrepreneur India reported on insights shared by Ganapathy Venugopal, Co-founder & CEO of Axilor Ventures, at the IGIS 2025 forum. Offering a candid investor’s lens, Venugopal remarked, “We’ve seen plenty of hype around AI. But for us, it’s about where the real value lies—can it solve something fundamental, like India’s teacher-student gap?” According to him, the most investable AI tools are not the flashiest but the most functional—those that support teachers, amplify their effectiveness, and reach where human resources fall short.
Echoing this, Kobi Gal from Ben-Gurion University pointed out that while AI has democratised access to learning, it hasn’t yet changed the core of how we learn. “The education system remains rigid. AI can increase reach, yes, but transformation is still elusive,” he said.
India’s edtech sector is poised for growth with its vast K–12 student base and rapidly expanding internet access. However, a major challenge remains—only 24% of households have internet, per NSSO data. This makes Tier II–IV cities a key battleground for AI-powered learning tools. Investors are now shifting focus from “edtech” as a label to learning outcomes, engagement, and job-readiness, with AI viewed as an enabler rather than a product category.
Venugopal pointedly questioned current trends: “Are we building tools to complete homework, or to change how we learn?” His statement taps into the broader tension—between consumer-friendly shortcuts and pedagogically sound, scalable solutions.
At ScooNews Global Educators Fest (SGEF) 2023, this theme of AI with a conscience was also central. Held in Jaipur, the festival brought together educators, artists, and changemakers to discuss how artificial intelligence can serve—not replace—human values in education. Noted speakers like Lakshyaraj Singh Mewar, Rama Datt, and Padma Shri Anand Kumar reinforced the idea that technology must remain grounded in empathy, inclusivity, and purpose. A memorable moment was Anand Kumar’s speech on whether AI could ever truly replace a teacher’s role—a thought-provoking precursor to the investor sentiments voiced at IGIS 2025.
The conversation today is no longer about AI replacing the classroom, but enhancing it. With investor confidence growing in tools that support hybrid delivery models, regional customisation, and lifelong learning, the sector appears headed toward a more sustainable future.
Yet, Venugopal issued a final word of caution: “We look at sectors where demand is unquestionable and the cost of not solving the problem is high. Education in India fits that bill. But we must build with humility—and rigour.”
As India’s AI-powered education future unfolds, investors, educators, and innovators alike seem to agree: the goal is not disruption for disruption’s sake, but designing systems that serve learners in meaningful, measurable ways.
📌 Stay tuned for SGEF 2025 — This year, we gather under the theme: “Purpose-Driven Education: Designing for Future Realities.” Explore how we can reimagine school curricula to align with the evolving needs of our society and the professional world. Register here
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