How EdTech is Rolling with The Changes

We’ve been attending the ASU+GSV Summit almost annually since its inception, back when it was hosted in the basement of Arizona State. The conference has grown into a juggernaut – it’s now arguably the largest EdTech conference on the calendar - and an annual destination for the industry. Because of its expansion, the conference has split into two worlds - the actual conference and the conversations outside the conference. While the conference content and attendee discussions often share similar themes and “vibes,” there can also be a disconnect. For example, as we’ve written in our takeaways from past ASU+GSV Summits, the conference tries to model itself as focused on where education is going and more aspirational about the future of learning. Given this, it is not surprising AI has become the prominent theme at GSV - Sam Altman (CEO of OpenAI) has spoken at the conference in the past, and the number of panel discussions that feature AI is, prominently, if not the majority of the conference.  

Policy Changes Top of Mind for Attendees – AI, Not So Much

Candidly, we’ve been critical of the disconnect between the discourse at ASU+GSV and what’s going on across the education spectrum, as the conference’s topics don’t always match the most prominent issues facing the education world (teacher shortage, school safety, etc.). We felt that disconnect again this year as arguably the most consequential policy shift in education in some time is occurring as the Trump administration looks to all but shutter the Department of Education, which in our hallway discussions with attendees was more top of mind than the long-term impact of AI.

All that said, we were pleased that Education Secretary McMahon was in attendance and made her case on the changes to the Department of Education (we were also pleased Arne Duncan, Education Secretary under former President Obama, was there to provide a counterpoint).  

Before getting into that - it’s helpful to get a refresher on what the Department of Education does and doesn’t do, how much K-12 funding comes from federal resources and proposed changes that are being made (i.e., block grants to states) and what isn’t expected to change (i.e., IDEA funding, Title 1 funding, etc.). Secretary McMahon said she wants to “shake things up” with regards to federal involvement in U.S. education and push more down to the states, though the details remain unclear as to how this would unfold and the overall path-forward role for the Department of Education is uncertain. 

It wasn’t lost on us that the music playing as people were entering the room for Secretary McMahon’s speech was REO Speedwagon’s “Roll with the Changes,” While it’s doubtful it was purposeful or intended to provide subtle messaging, as the kids would say – it’s a banger of a song. At its core, it’s a fitting musical backdrop that encapsulates how the education sector has had to operate over the last five years.  The industry has been very steady historically and remains resilient, but since 2020, it’s had to absorb several macro events (COVID, etc.) and “roll with the changes” to deliver education to learners across the country. 

We were also reminded at the conference that in 2026, 36 gubernatorial seats will be on the ballot – nearly three-quarters of all governorships. At least in K-12, this could have a more consequential impact on schools as states look to figure out their own education priorities, especially in a world where more decision-making and funding is pushed down to the states from the federal level.  We expect school choice and ESAs will feature prominently in many of these elections. Governor Kim Reynolds from Iowa was at the conference touting the success the state has seen related to school choice. At the same time, public school enrollment is continuing its decline that began during COVID, while private school enrollment is on the rise. Based on discussions we’ve had, we believe it’s likely school choice will be a prominent topic on ballots (and not just in traditionally red states). 

AI is a Hot Topic, But Not Yet a Purchase Driver

On AI, while we jest about the amount of AI-driven content at the conference, no doubt the pace of progress is going to “keep on rolling.”  As we have discussed in the past, we are yet to see AI prioritized at the end user level as a key purchasing priority.  However, companies are increasingly folding in AI capabilities to drive efficiency and productivity across the operations. This trend is probably most prominent in the corporate learning space, where we had a number of conversations with executives at the conference that are folding in AI capabilities to enhance efficiencies around content creation and customer support. 

Skills-Based Learning Remains in the Spotlight

One theme that was prominently discussed both in panel discussions and our conversations with conference participants is skills-based learning. Secretary McMahon discussed the priority of skills-based learning in K-12 and workforce readiness. This aligns with one of the big themes we talked about coming out of our conference on the increasing importance of career and technical education. Upskilling and reskilling remain very important topics across the board, particularly in the tight labor market. We are also noticing a growing number of conversations on skills assessment with regards to identifying who needs upskilling and tracking whether employees have the skills needed for their roles. A panel we attended hosted by BCG noted the number of companies that are prioritizing a better view of skills across their organization as a priority is increasing – yet at the same time, many of these organizations note they lack sophisticated skills tracking methods. 

Enrollment and Cost Pressures Vary Across Higher Education

On higher education, based on conversations that we had with executives selling into the higher education sector, there is a clear divide currently between the “R1” research institutions (of which there are approximately 180) and all other schools, particularly the community college network.  The former has seen more direct budget impacts from Trump administration policies and in many instances are rationalizing costs. The latter has been less impacted by policies of the current administration. While the former has more name brand recognition (think Ivy League and Big Ten schools, etc.), the long tail of higher-education institutions are being less impacted; they are focused on Pell Grants surviving and are less dependent on international student revenue streams. What is clear to us is in all instances, higher education is focused on enrollment and fundraising, so any solution offering that enables enrollment, retainment, fundraising and alumni relations is going to have prominence for the foreseeable future. 

How Will Education Roll with the Changes?

As we round out what we are sure is the first (maybe only?) EdTech / REO Speedwagon crossover event – it’s clear to us that there are going to be some portions of the education economy that are going to need the be “Ridin’ the Storm Out” while others are going to have their “Time For Me to Fly” moment.

As always, please don’t hesitate to reach out to the Baird Knowledge Solutions team. We are happy to share our perspectives as this sector continues to evolve (as well as share music recommendations!).