The five-year compound annual growth rate (CAGR) for the US AI-based Learning market is a robust 27.8% and revenues will more than triple to $10.6 billion by 2027. The market conditions are very favorable for developers with the demand high in all six buying segments and venture capital flowing to startups.

The major revenue opportunities are in the corporate segment and the federal government agencies in the US. The US is the top buying country throughout the forecast period.

Demand is high and the barriers-to-entry are falling fast. Companies no longer need to develop expensive proprietary AI engines but instead “rent” AI from cloud-based AI vendors (like IBM Watson and Microsoft Azure) and buy relatively inexpensive premade and pretrained components in the growing number of online marketplaces. Startups are now able to get to market very quickly.

Metariverse revised its U.S. AI-based Learning revenue forecasts significantly upward from previous forecasts. The rapid uptake of AI-based Learning coincides with the rapid evolution of AI technology in general. The competitive landscape is fundamentally different than a little over two years ago.

Legacy suppliers are “buying their way in” via acquisitions of AI-based Learning startups. One interesting pattern in the M&A activity is that the acquisitions are by very large education publishers and tech giants. Education publishes that have acquired AI-based Learning companies include Wiley, McGraw-Hill, Pearson, Houghton Mifflin Harcourt, Barnes & Noble Education, Daekyo, Elsevier, Cornerstone OnDemand, VitalSource and Course Hero.

The new Metariverse AI report is 435 pages and lists more than 1,200 developers as well as investment patterns in this learning segment.

Bio: Sam Adkins, CEO of Metaari (formerly Ambient Insight), has been providing market research on the global learning technology industry for more than 25 years. He focuses on identifying revenue opportunities for advanced learning technology suppliers.