AI Education Goes Global: Can China's Tech Lead the Way?

Can AI Education Be the Next "New Oriental"? China's EdTech Giants Set Sail for Global Markets

The challenge of internationalizing an enterprise is no small feat. Understanding overseas markets and navigating cultural differences can quickly lead to failure. For Chinese internet products, venturing abroad often results in a treacherous journey – either striking gold or falling into a pit of obscurity. AI-powered education products are currently caught in this dilemma, with their future success yet to be determined.

The Educational Outbound Journey: Slow and Steady Wins the Race?

While some industries like gaming and e-commerce have seen rapid international expansion, education traditionally takes a more measured approach.

Even so, China's educational outbound journey began over a decade ago. Since around 2013, internet technology companies have actively explored global markets, with online education leading the charge. Good Future invested in American university Minerva as early as 2014, and NetDragon acquired a British edtech company in 2015. Subsequently, tech giants like iFLYTEK, NetDragon, and Shiwo accelerated their technological expansion overseas, focusing on areas like hardware big screens and smart classrooms, introducing Chinese soft and hardware solutions to the global market.

Simultaneously, China's booming online education sector fueled the internationalization of its products. Brands like ABCMouse, Banban (BanYu), and Baby Bus have garnered significant user bases abroad. Youdao launched U-Dictionary, a tool product aimed at overseas users, in 2016. By 2020, this product had surpassed 100 million global installations.

Furthermore, online educational institutions like Huohua Mind (Firelight) and Meishu Bao have also stepped up their course service exports. In 2022, Firelight established independent research and development teams in Singapore and North America, focusing on localized teaching materials.

The Quest for Success: AI as the Catalyst?

Over the years, Chinese educational enterprises have adopted diverse strategies – from capital investment to tool exports, course services, and content sharing – effectively bringing their domestic models to the global stage.

Despite some achievements, the education sector remains a challenging frontier. While there have been successes, few examples of truly successful "scale-up" ventures comparable to New Oriental exist in the international education market. The path forward ultimately lies in technological innovation and product differentiation.

AI-powered education products are making waves, offering users comprehensive experience upgrades through technological advancements. In 2024, AI is poised to be a significant driver of growth in the educational technology sector.

China's AI Education Giants: A New Dawn?

The enthusiasm for AI applications is palpable, extending beyond education to areas like video tools, image processing, and online marketing. Prominent players like Meira, PixVerse, and WiseAI are spearheading this wave of innovation. However, true "giants" in these sectors remain elusive.

While some investors express reservations about relying solely on GPT-based models for education, others argue that niche products within the education sector benefit from specialized development and user experience, creating inherent barriers against generic AI models.

OpenAI founder Sam Altman envisions a future where AI reshapes the educational landscape, particularly in areas like personalized tutoring. He believes AI has immense potential to empower education.

Companies like ByteDance's Gauth (an AI-powered tutoring platform) and Zuoyebang's Question.AI are venturing into international markets with their AI-driven solutions. Although still in their early stages, they represent a promising shift in the educational landscape. By embracing technological advancements, these companies are carving a new path forward for Chinese education in the global arena.