Finance
Pearson says its AI delivers better grades, general AI does not
Published by Global Banking & Finance Review®
Posted on February 27, 2026
2 min readLast updated: February 27, 2026
Quick Summary
Pearson argues its purpose-built, teacher-aligned AI tools are improving student outcomes, while “general AI” used without guardrails can weaken reasoning through cognitive offloading. The company says its regulated, high-trust assessments and virtual schools—80% of operating profit—make its model m
Pearson says its AI boosts learning as investors weigh AI disruption
By Paul Sandle
LONDON, Feb 27 (Reuters) - British education company Pearson said its use of AI in its education courses was delivering better outcomes for students, in contrast to general AI models, which the company said had a negative impact on learning and reasoning skills.
Pearson’s AI strategy and investor concerns
Share performance and market reaction
Shares in Pearson, which provides assessments, virtual schools, textbooks and digital courseware, have fallen by around 30% in the last 12 months on concerns that AI could replace some of its products and services.
The shares were trading down 0.5% at 955 pence on Friday after it published full-year results.
Leadership view on scaling AI
Chief Executive Omar Abbosh said Pearson was scaling AI across its products, which were designed with teachers and had to meet exacting standards.
Profit mix highlights defensible segments
He said 80% of 2025's operating profit of 614 million pounds ($830 million) came from assessments and virtual schools.
"That requires a level of operational excellence that the accreditation authorities demand, and that you can prove works, sometimes in a court of law and often in a regulatory audit," he said, adding that it was "very defensible and robust".
Digital courseware exposure to AI disruption
Around 10% of profit came from digital courseware, which some investors viewed as more vulnerable to AI.
Pearson’s stance on general AI models vs education-specific AI
Claims on learning outcomes and trust
But Abbosh said general AI models did not compare to the skills Pearson was providing.
"We can show that learners learn better when they use our AI, which is not true when you use AI in the wild, actually that can cause cognitive atrophy problems," he said in an interview.
"In educational systems, the nearer you are to students and teachers the more trust that you need to have to operate. Pearson operates at a very high level of trust, and that's why I feel good about our business model."
Financial results and outlook
Pearson reported a 6% rise in 2025 operating profit to 614 million pounds ($830 million) on sales of 3.58 billion pounds.
It said it expected profit to increase to 640 to 685 million pounds this year.
($1 = 0.7401 pounds)
(Reporting by Paul Sandle; Editing by Susan Fenton and Jane Merriman)
Key Takeaways
- •Pearson’s 2025 preliminary results show sales of £3.577bn and adjusted operating profit up 6% to £614m, with 2026 adjusted operating profit guided to £640m–£685m (and a £350m buyback underway), underscoring management’s confidence while AI disruption fears persist. (prnewswire.com)
- •The CEO’s “AI in the wild” critique aligns with a growing research thread on cognitive offloading—where reliance on AI tools can reduce independent critical thinking—though studies also suggest outcomes improve when AI use is structured and guided. (mdpi.com)
- •Pearson is positioning its moat around regulated, audit-ready products (assessments/virtual schools) rather than commodity content, but its shares have still lagged as investors debate whether cheaper general-purpose AI will pressure vulnerable areas like digital courseware. (thetimes.com)
References
Frequently Asked Questions about Pearson says its AI delivers better grades, general AI does not
1What did Pearson say about its AI versus general AI models?
Pearson said its AI in education courses delivers better outcomes for students, while general AI models can have a negative impact on learning and reasoning skills.
2How have Pearson shares performed and why?
Pearson shares have fallen about 30% over the last 12 months amid concerns that AI could replace some of its products and services.
3Where did most of Pearson’s 2025 operating profit come from?
CEO Omar Abbosh said around 80% of 2025 operating profit came from assessments and virtual schools, with about 10% coming from digital courseware.
4What were Pearson’s 2025 results and sales?
Pearson reported a 6% rise in 2025 operating profit to 614 million pounds on sales of 3.58 billion pounds.
5What profit guidance did Pearson give for this year?
Pearson said it expected operating profit to increase to 640 to 685 million pounds this year.
