CITIC SEC: AI technology is revolutionizing traditional education. The future of AI+ education market is promising.

CITIC SEC released a research report stating that AI large models are expected to be applied in the full scenario of "teaching, learning, examination, and management" in education, promoting full process intelligence and assisting personalized learning. The demand and quality of education are both improving, combined with favorable policies, opening up vast prospects for the AI education market. Generation AI large models represented by GPT have achieved technological breakthroughs and are about to bring about a new revolution in AI education. Major domestic manufacturers are actively investing in large model research and development, optimistic about the widespread application of AI in the field of education. The main viewpoints of CITIC SEC are as follows: AI technology is transforming traditional education, and the future of the AI+ education market is promising. With the gradual evolution of AI technology, AI+ education has become an international trend, and relevant domestic policies are gradually being implemented. With the advent of the large model era, overseas companies are incorporating GPT to enhance product capabilities, while domestic companies are developing their own AI large models, accelerating the future commercialization process. There is a huge demand space for AI+ education in China, and K12 education may become the main landing field for AI. On one hand, national education financial expenditure is steadily increasing, and the estimated scale of the domestic education informatization market has exceeded 400 billion yuan. More future funding will be used to improve the level and quality of education intelligence to promote fair education development. On the other hand, as the per capita disposable income of residents increases, residents' willingness to invest in education is gradually strengthening. AI+ education applications: Achieving intelligentization in all scenarios, large models accelerating AI+ education innovation. AI+ education is mainly applied in the four major scenarios of "teaching, learning, examination, and management," specifically including: in teaching, using AI assistance to reduce the burden on teachers and improve teaching effectiveness; in learning, customizing personalized learning plans for students and practicing differentiated teaching methods; in examinations, AI covers the entire process from setting questions to invigilating, marking, and providing feedback; in management, efficient management of campuses by AI to achieve smart campus stage, covering the entire process of the education industry. Currently, generation large models represented by GPT are breaking through the old bottlenecks of AI and are expected to reshape the paradigm of AI education, innovating content generation and interaction methods. In specific terms, generation large models are expected to empower the following scenarios: solving problems in photos, promoting teacher-student interaction, creating virtual spoken dialogue partners, intelligent assistants to help teachers prepare lessons, and virtual teachers to carry out the entire teaching work process. Overseas companies lead innovation in functions, while domestic companies focus on developing proprietary education large models. Overseas education companies are actively deploying generation large model products. From the latest products of overseas education companies, personalized learning will be the main direction of development for large models in the future. The overseas language learning platform Duolingo has established a course system using AI, and its product Duolingo Max integrates GPT-4 to simulate the process of live teaching. In the 2023-2024 fiscal year, Duolingo's AI+ education applications are accelerating landing, with significant growth in users and revenue, and initial commercialization effects. In terms of the domestic competitive landscape, companies generally choose to develop proprietary education large models in specific categories, with Internet companies, educational technology companies, research institutions, and university teams entering the market. Mobile apps and learning machines will be the primary landing forms for AI+ large model education: in terms of mobile apps, with the rapid development of AI technology, the penetration rate of AI-enabled courses and services will rapidly increase; in terms of learning machines, as the effects of large models on learning machines gradually manifest, the existing market demand for learning machines will be further exploited, and the overall market demand is expected to see rapid growth. Risk factors: Development of AI core technologies falls short of expectations, regulatory policy risks, intensification of industry competition, enterprise data security risks, geopolitical risks.