Pearson: Educational publisher starts to reap rewards of AI

Pearson said it is starting to see “commercial benefit” from the integration of artificial intelligence (AI) into its services.

The education publisher said there have been over five million student interactions with its higher education AI study tools in the nine months to September, leading to double-digit year on year billings growth in its higher education products with AI.

Pearson reported group sales growth of four per cent in the third quarter and reaffirmed its full year guidance, which it expects to stay in line with consensus market expectations of adjusted operating profit of £598m.

The London-listed company, which has predicted that AI will reshape the educational publishing market, has been on a mission to roll out the technology across its products as it looks to modernise. 

For example, it has been developing an AI-powered ‘teaching pal’ to create customised lessons and has embedded AI study tools to offer step-by-step coaching for exams.

Pearson chief Omar Abbosh believes the business is delivering on his top three priorities for 2024.

He said: “First, our focus on operational and financial performance has driven growth across all divisions this quarter and we are on track to meet full-year expectations.

“Second, we are accelerating our AI capabilities across the business and starting to see the commercial benefit.

“Third, expanded enterprise relationships with companies such as ServiceNow demonstrate progress on our intention to expand in workforce learning.”

In July, Pearson reported an adjusted operating profit of £250m on half year sales of £1.75bn – down from £1.88bn in the year ago period.