According to Pearson, their AI produces higher grades than ordinary AI

Pearson has said that its use of artificial intelligence (AI) in education is helping students achieve better results, unlike general AI tools, which the company claims may harm learning and reasoning skills.

Pearson’s shares have dropped around 30% over the past year because some investors worry that AI could replace parts of its business, such as textbooks and digital learning tools. On Friday, the shares fell 0.5% to 955 pence after the company announced its yearly results.

Chief Executive Omar Abbosh said Pearson is expanding AI across its products, which are developed with teachers and must meet strict education standards. He said 80% of the company’s 2025 operating profit of £614 million ($830 million) came from assessments and virtual schools. These services require high accuracy and must meet regulatory requirements, making them strong and reliable parts of the business.

About 10% of profit came from digital courseware, which some investors believe could face more competition from general AI tools. However, Abbosh said Pearson’s AI systems are specially designed for learning and show better results for students. He added that using general AI tools without proper guidance can weaken thinking skills.

Pearson reported a 6% increase in operating profit to £614 million on revenue of £3.58 billion in 2025. The company expects profit to grow further to between £640 million and £685 million this year.

Abbosh said Pearson’s close relationship with teachers, students, and regulators creates strong trust in its products, which supports its business despite growing competition from AI.