Sales of Pearson education are increasing thanks to artificial intelligence

Pearson has credited its recent investment in artificial intelligence with driving revenue growth in the most recent quarter.

The educational publisher saw underlying revenue rise 4 percent in the three months ended September, bringing total growth for the first nine months of 2024 to 2 percent.

The FTSE 100 group saw a double-digit increase in billings for higher education products in the first three quarters of the year, with its AI study tools recording 5 million student interactions.

Although revenue at Pearson’s higher education business has leveled off so far this year, it returned to growth in the third quarter with a 4 percent increase.

The company’s virtual learning division also recorded a 4 percent increase in the July to September period, supported by rising enrollment numbers at its schools.

Pearson said AI applications had been integrated into its virtual schools to provide struggling students with “step-by-step assistance to guide them through difficult material.”

Omar Abbosh, CEO of Pearson, said: “We are accelerating our AI capabilities across the business and starting to see the commercial benefits.”

In early October, the company launched a Genative AI Foundations certification for physical testing centers and its online testing platform OnVUE.

It introduced the qualification to give people the skills to work with generative AI technologies, which are increasingly desired among businesses.

In addition, Pearson said it is integrating “AI” into its English language learning department by creating Teaching Pal to provide “tailored lesson content and activities.”

Mark Crouch, market analyst at eToro, said Pearson “has broken away from what turned out to be an inefficient and outdated business model.”

He added: ‘The next test for Pearson will be maintaining growth… If Pearson is to continue its top performance, the company will need to demonstrate the same acumen that the market has come to expect.’

Following the latest trading period, Pearson said it is on track to achieve annual forecasts, with adjusted operating profit expected to be around £598m.

It also expects earnings of 61.6 pence per share and organic sales to be 2.7 percent higher at constant exchange rates.

Pearson Stock were up 3.5 per cent to £11.09 late on Friday afternoon, making them one of the top performers of the FTSE 100 Index.