AI Education Market Surpasses $16 Billion in 2024 and Expected to Grow at Over 22% Annually

A new report by Validated Insights, a higher education marketing and research firm, reveals that the AI education and training market reached $16.2 billion in 2024 and is projected to grow at an annual rate exceeding 22%. The findings highlight a surge in demand for AI-related skills, driven by both workforce upskilling and evolving hiring practices. According to Brady Colby, Head of Market Research at Validated Insights, the market is poised for “incredible, maybe explosive” growth. The report notes that approximately 4% of the white-collar workforce is currently pursuing AI upskilling, while 80% express interest in doing so. It further estimates that 46.9 million workers plan to enhance their AI skills within the next six months, underscoring a rapidly expanding talent pool. This growth outpaces other education sectors, such as leadership training, which is expected to grow at 10.2% annually. AI education programs, by contrast, are forecast to nearly double that rate, with a projected 22.7% yearly increase. Colby attributed this momentum to both employee-driven initiatives and employer demand, stating, “The job market is starting to seek and reward AI skills in hiring, and we’re already seeing dramatic projections of shortages in many AI-related career fields.” A critical insight from the report is the underrepresentation of credit-bearing AI programs in higher education. Only 0.2% of individuals learning AI in structured environments are enrolled in degree-granting courses, despite the high demand. Colby emphasized that this gap represents a significant opportunity for colleges and universities, suggesting that aligning programs with learner interests could yield substantial benefits for both institutions and students. The report also identifies disparities in AI job market activity. Nearly half (46.7%) of all AI expert job postings originate from California, New York, Texas, or Washington, reflecting regional concentration in tech and innovation hubs. Meanwhile, interest in AI training varies widely across states, with some regions showing higher engagement than others. Beyond workforce trends, the study examines venture capital funding for AI-related companies, existing business adoption of AI technologies, and degree competition in AI fields. It marks the first dedicated analysis of AI education by Validated Insights, which previously focused on sectors like online program management, MBA programs, nursing education, and trade schools. The report underscores the urgency for educational institutions to adapt to the shifting landscape. With AI skills becoming increasingly vital across industries, the demand for accessible, high-quality training is expected to outstrip current capacity. Colby noted that the market’s growth is not just a trend but a “massive pool of interested students” that institutions must address. Validated Insights, which specializes in data-driven strategies for higher education, plans to update the AI education report regularly. The firm, known for its performance guarantees in marketing outcomes, positions itself as a key player in helping colleges and universities navigate the evolving AI training demand. As the AI sector continues to expand, the report highlights the need for scalable solutions to meet rising expectations, whether through formal degree programs, corporate training initiatives, or specialized certifications. Institutions that act swiftly to align with this demand may find themselves at the forefront of a transformative educational and economic shift.