India’s edtech sector is witnessing a resurgence as it adapts to the post-Covid-19 landscape, with artificial intelligence (AI) playing an increasingly pivotal role in its growth. Companies are integrating AI into their educational offerings while intensifying investments to attract students and professionals, anticipating sustained demand for future-ready skills.
Edtech firm upGrad is at the forefront of this trend. Anuj Vishwakarma, CEO of the higher education programs division, stated that the company has invested nearly Rs 70 crore over the past three years in developing AI-related content and delivery infrastructure. Furthermore, it allocated around Rs 125 crore last year alone to promote its AI-focused courses, a strategy that seems to be paying off.
Vishwakarma indicated a notable shift in enrolment demographics, with a growing proportion of learners boasting over a decade of work experience now signing up for AI programmes. Initially, 40-50% of enrolments were made by early-career professionals with 0-5 years of experience. In just over a year, the share of AI-first courses has surged from 10-15% of offerings to nearly 50% of total enrolments.
In contrast, PhysicsWallah is adopting a more organic, affordability-focused approach. Chief Marketing Officer Satish Sharma revealed that the company has not spent any money marketing its AI courses, even as it offers programmes like GPT and prompt engineering for around Rs 500 over six months. “AI is still a part of our business—about 3-4%—but we are still bullish on its potential,” Sharma noted, emphasizing the company’s commitment to maintaining affordable education while exploring premium offerings for professionals through specialized cohorts and expert-led programmes.
PhysicsWallah is also investing in AI-driven tools such as AI Guru, Ask AI, AI Grader, AI Mentor, and AI Books to improve learning outcomes and broaden access for both students and educators. This enhanced focus on AI comes amid increasing demand for educational resources, particularly in tier-2 and tier-3 cities.
A recent study by upGrad, known as the Rekrut study, highlighted that tech hiring in non-metro cities is projected to rise from 12.3% to nearly 20% by fiscal year 2027, as companies expand their talent pool beyond traditional urban centers. This shift underscores the growing appeal of AI education across various demographics.
However, the rapid expansion of AI courses has sparked concerns about potential misleading claims. The Advertising Standards Council of India (ASCI) has reported an uptick in exaggerated assertions regarding job outcomes within the broader edtech sector. According to ASCI’s CEO and Secretary General Manisha Kapoor, “There is strong consumer interest in future-ready skills, but it also increases the likelihood of exaggerated and insufficiently substantiated claims.” While ASCI has not received specific complaints related to AI courses in fiscal year 2025-26, it has processed 32 cases in the edtech sector overall, many concerning guarantees of job placements.
As AI continues to reshape the edtech landscape, companies are attempting to strike a balance between aggressive growth ambitions and regulatory scrutiny, all while responding to the rising demand for skills that prepare learners for the future. The interplay of innovation, affordability, and oversight will be critical as the sector navigates its evolving role in education.
See also
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AI’s Growing Influence in Higher Education: Balancing Innovation and Critical Thinking
AI in English Language Education: 6 Principles for Ethical Use and Human-Centered Solutions
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