As OpenAI, Google, Microsoft, and Anthropic move deeper into classrooms, edtech startups must adapt fast—by specializing, collaborating, and delivering measurable impact.
GUEST COLUMN | by Dr. Joy Chen
HASAN AS ARI
Lately, one concern keeps coming up in my conversations with edtech founders: “The big AI platforms are moving too fast and invading our space.” And they’re right to worry.
‘… edtech founders: “The big AI platforms are moving too fast and invading our space.” And they’re right to worry.’
OpenAI, Google, Microsoft, and Anthropic aren’t just experimenting anymore, they’re rolling out integrated learning solutions within their AI assistants, such as ChatGPT’s Study Mode, Google’s Gemini in Classroom, and Claude’s Learning Mode.
For schools, teachers, and learners, this unlocks exciting new learning possibilities. But for startups, it introduces a new layer of risk: in an already crowded market, they must now compete against platforms that control the infrastructure, data, and distribution channels.
The Challenges of Competing with Big AI
This shift presents daunting challenges for startups trying to build sustainable, scalable businesses in today’s AI-driven education ecosystem. Key challenges include:
1. Competing Against Free, Built-in Solutions
When a core product feature becomes bundled into a widely used platform and, at no cost, small companies find it nearly impossible to build a lasting business around it. Basic tools like content generation, flashcards, grammar correction, and quizzes, once bread-and- butter of many edtech startups, are now replicated by a simple prompt to large language models. These functionalities are integrated directly into tools such as ChatGPT and Gemini, undercutting standalone solutions.
2. Overcoming Platform Control of Data and Distribution
These AI giants don’t just own the technology; they control the workflows and valuable data streams flowing through them. Google Classroom, for example, is used by millions of teachers and students and is deeply integrated into their daily workflows. This gives Google powerful distribution advantages and access to user data that few startups can match. Without integration or data access, smaller companies struggle to optimize and personalize their products.
3. Earning Trust in a Skeptical Market
Educators and schools are increasingly cautious about adopting new tools, especially AI- driven ones. Concerns about unproven efficacy and effectiveness, data privacy, and algorithmic bias are rising. Without clear evidence of responsible data practices and measurable learning outcomes, startups will have a hard time securing adoption and scaling.
So Where is the Opportunity?
Competing with AI giants is hard, no doubt. But these challenges don’t signal the end for edtech startups. Instead, they reveal the opportunities where startups can thrive, tackling what the big platforms either can’t or choose not to address.
1. Go Deep, Not Wide
Large AI platforms are optimized at scale and generalization. Startups can win by focusing vertically on high-need, under-prioritized niches, such as vocational training in specific industries, mental health support, tools for neurodiverse learners, or culturally relevant content for particular communities. These areas are often too complex or too specialized for big platforms to prioritize effectively.
2. Augment Humans, Don’t Replace Them
AI is powerful, but education is still deeply human. Products that empower teachers, tutors, and counselors, helping them do their jobs better rather than replacing them, are more likely to gain trust and adoption. Solutions built on AI-human collaboration have greater potential for lasting impact.
3. Deliver Proven, Measurable Learning Outcomes
Ultimately, the strongest edtech companies will be those that can demonstrate clear, measurable improvements in student learning, retention, or engagement. Products supported by solid evidence and transparent results, and that clearly communicate their impact to educators and families, will secure and grow their market share steadily.
4. Build Trust Through Data Privacy
Startups have a real opportunity to stand out by being open and responsible with user data. Unlike the big AI giants, whose scale can make building personal trust difficult, startups can be more transparent, accountable, and genuinely focused on people. This kind of authentic trust is a major advantage—it helps startups get a foot in the door with schools, build lasting relationships, and be seen as true partners who prioritize delivering meaningful educational outcomes over competing on platform size.
The Way Forward
AI isn’t just a passing trend, it’s reshaping how we teach and learn. For edtech founders today, this new reality brings both risk and opportunity. Ask yourself:
– Does my product offer value beyond what free AI assistants can provide?
– Can I prove that it improves learning in a measurable, trustworthy way?
– Am I building for a specific group of users with a specific need, focusing where the big platforms won’t?
If the answer is yes, you’re not just surviving, you’re building the next generation of trusted, resilient edtech solution.
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Dr. Joy Chen is an entrepreneur, investor, and advisor with extensive global experience in education and technology. She founded First Leap Future Leaders Institute in China, later acquired by TAL Education Group, where she went on to lead international investments and strategy. She currently advises organizations including TAL Education, the Stanford Accelerator for Learning, and GSV Ventures, and serves on several global education boards. Dr. Chen holds a Doctorate in Education from the University of Southern California, an M.S. in Education from Indiana University, and is an alumna of the Stanford Graduate School of Business (SEP 2015), having been among the early researchers in digital education in the late 1990s. Connect with Dr. Chen on LinkedIn.
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Original Article Published at Edtech Digest
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