AI Exposes Flaws in Education System, Economist Tyler Cowen Says

Artificial intelligence is exposing deep flaws in the current education system, according to economist Tyler Cowen, a professor at George Mason University and prominent thinker on technology and society. In a recent conversation with podcaster Azeem Azhar, Cowen argued that schools and universities are failing to adapt to a world where students have instant access to vast amounts of knowledge through AI tools like ChatGPT. He pointed out that traditional practices such as homework and standardized testing are becoming obsolete. "It means admitting that homework is obsolete," Cowen said. "The easy ways of grading people, like computer-graded exams — they're obsolete." Rather than focusing on how to catch students using AI, he stressed that educators should be asking a more fundamental question: what should we be teaching and how should we be assessing learning? Cowen criticized the education system for being stuck in a cycle of outdated incentives. "The whole system is set up to incentivize getting good grades. And that's exactly the skill that will be obsolete," he said. As AI can generate essays, solve problems, and explain complex topics in seconds, the ability to memorize facts or complete repetitive assignments no longer holds the same value. Instead, Cowen called for a transformation toward mentorship-based learning that prioritizes critical thinking, creativity, and adaptability. He emphasized that effective teaching in the AI era requires deep engagement and personalized guidance — qualities that cannot be replicated by formulas or automated systems. "Faculty teachers need to be more like mentors. That can be rewarding, but it's very time-intensive. It's not something you can do by formula," he noted. Despite the clear need for change, Cowen remains skeptical about the ability of institutions to evolve. "Our ability to reshuffle the personnel, the procedures — we just seem to me really quite frozen," he said. "I don't see that they're changing at any level whatsoever." His concerns come at a time when major tech companies are aggressively entering the education space. OpenAI launched Study Mode for ChatGPT, a feature designed to turn the chatbot into a personalized tutor by encouraging students to think through problems step by step rather than handing them answers. Google has introduced Gemini for Education, offering AI-powered lesson plans, quizzes, and videos integrated into search results, aiming to become a foundational tool for students early in their academic journey. While some teachers are using AI to streamline lesson planning and tailor content, others are rethinking assessments entirely — shifting from memorization-based exams to projects and discussions that emphasize understanding and application. But the broader system, Cowen warns, remains resistant to change, leaving students and educators unprepared for the realities of an AI-driven future.