The outgoing boss of Pearson said artificial intelligence (AI) is helping students with difficult projects – but warned it runs the risk of resembling a ‘bratty teenager’.
Andy Bird, who is leaving the education group in January, said it was testing how generative AI – a tool that produces human-like content based on prompts – can improve its learning tools.
This includes developing software that tells students which areas they need to practise and a conversation AI tutor to help with learning the English language.
But AI is far from perfect. ‘In some regards generative AI can appear a bit like a bratty teenager who’s always right, even when they’re wrong,’ Bird said.
‘We have to make sure any output from Pearson’s use of generative AI is accurate so that it can be trusted. ‘And that’s where we see the value in our high-quality datasets in terms of high quality data inputs lead to much higher quality data outputs.’
New technology: Pearson boss Andy Bird (pictured), who is leaving the education group in January, said it was testing how generative AI can improve its learning tools
His comments came as the FTSE 100 group raised its full year profit guidance by £20million.
It now expects profits of between £570million and £575million for 2023 as it rakes in strong sales in its English language learning tools and online qualifications.
The shares, which have more than doubled in value since the depths of Covid, rose 2.9 per cent, or 27p, to 946.2p.
Bird leaves in January after four years at the top. He will be replaced by former Microsoft executive Omar Abbosh, who is likely to continue the push into AI, as Pearson has pivoted dramatically away from textbooks to an educational technology business.
There have been concerns among teachers that AI could be used by students to cheat on exams or plagiarise essays.
But Pearson has previously said AI was ‘embedded’ in its operations and that it would be exploring more ways to use the technology.
Bird, who was previously chairman of Disney, said the group was working on augmented and virtual reality initiatives. Analysts at JP Morgan had previously backed Pearson’s ability to ride out the AI boom.
And Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown, said: ‘Pearson can teach us all a thing or two about resilience.
‘While the wider economy is under pressure, the likes of vocational testing, English language learning and broader assessments and qualifications are all being taken up in force, boosting Pearson’s top and bottom line.
‘A time when economic wheels creak is often a time when we see increased demand for retraining, which means that even in the face of a recession, Pearson has enviable assets.’
