GEF Madrid 2024: Financing Education in an AI era

Summary

The panel discussion explores the financial aspects of AI in education, emphasizing the importance of following the money to understand the technology's development. Panelists from diverse backgrounds, including investment banking, open innovation networks, and entrepreneurship, discuss smart investments, the challenges of transforming existing institutions, and the potential of AI to enhance personalized learning. They also touch on the need for patience, the importance of human engagement in learning, and the possibility of universities spinning off AI-related services.

Takeaways

• 💡 The importance of following the money to understand the direction and potential of AI investments was emphasized, highlighting the need to be aware of who is funding the technology and how decisions about budgets are made.
• 🌐 The panel discussed the difference between smart and passive opportunistic money in AI, noting that while many want to be involved, true smart investors understand the current lack of defined business models and the need for patience and flexibility.
• 🤖 There was a consensus on the need for patience in AI development, allowing for the technology to mature and for investors to identify and support smart entrepreneurs without applying undue pressure.
• 🏫 The challenges of digital transformation in education were discussed, with the observation that it's often easier to build new institutions rather than transform existing ones, and the importance of considering the flow of talent alongside capital.
• 📈 The potential for universities to spin off certain capabilities and involve investors in these enterprises was highlighted as a possible new revenue stream for higher education.
• 🧠 The conversation touched on the blurring lines between different sectors such as education, health, and finance, and how AI is beginning to connect these dots, suggesting that capital should flow towards these interdisciplinary solutions.
• 👶 There was a strong emphasis on the importance of early childhood education and the development of soft skills such as emotional intelligence, which are hard to teach later in life but are crucial for personal success.
• 🎓 The panelists agreed that higher education institutions need to be 'AI-first', incorporating AI into their value proposition to be taken seriously by investors and the market.
• 🎮 The potential of gamification in learning was discussed, with examples given of how engaging learning experiences can lead to better educational outcomes and student advancement.
• 🌍 The geographical concentration of AI talent was noted, with a call to consider the international dimension and the potential for partnerships that can help distribute and democratize AI knowledge and skills.
• 🛡 The concept of defensibility in AI investments was questioned, with opinions shared that while some may argue for the possibility of creating a defensible position, others see it as challenging due to the need for transparency and the rapid pace of innovation.

Q & A

What is the main topic of discussion in the panel?

The main topic of the panel is the impact of AI on education, including the challenges and opportunities it presents, and how funding and investment in AI are shaping the future of education.

What does the panelist Morgan Battle believe is key to understanding changes in any field, including AI in education?

Morgan Battle believes that following the money is key to understanding changes in any field. This means considering what is funding the technology, who is behind the funding, and how decisions about budgets and where the money goes will shape the future.

What type of company is Tucker Capital, as mentioned by Morgan Battle?

Tucker Capital is a strategic investment bank that has been around since 1982, focusing exclusively on education for the last three and a half decades, offering a mix of strategic consulting and M&A advisory services.

What is the role of Fernando Valenzuela in the context of AI and education?

Fernando Valenzuela is the CEO of a company called Latam Alliance, which is the largest open innovation network in Latin America. They transform and build universities and schools from scratch, focusing on digital transformation.

What does Eddie Lopez see as the key to distinguishing between smart investments and opportunistic ones in AI?

Eddie Lopez believes that the key to distinguishing between smart and opportunistic investments in AI is to find and back smart people, be flexible, stay curious, and understand that the industry is at an inflection point where patience is required to let the technology develop.

What is the perspective of Al Nan on investing in AI for his school?

Al Nan, as an entrepreneur and board member of New World International School, believes in building a holistic learning approach. He thinks that incremental investments in AI will be the way forward to understand its utilization and improve student experience, well-being, and academic performance.

What does Alex Schindler suggest about the role of universities in developing AI skills?

Alex Schindler suggests that there is a lack of existing skills both at the investor level and currently at the academic level. He believes that universities could utilize their research much more extensively and cooperate with industries to develop AI skills and tools.

What is the panel's view on the importance of the flow of talent in the context of AI in education?

The panel, particularly Fernando Valenzuela, emphasizes the importance of the flow of talent alongside the flow of capital. They note that the concentration of AI talent, particularly in English-speaking developed markets, is a significant factor in the development and application of AI in education.

How does the panel discuss the potential for universities to generate new revenue streams through AI?

The panel suggests that universities could generate new revenue streams by spinning off certain capabilities, creating filters or regulators for AI content, and potentially offering these as services to other institutions or industries.

What does the panel suggest about the future of higher education in the context of AI?

The panel suggests that higher education will need to adapt to incorporate AI in a smart and ethical way. They believe that traditional universities can survive the wave of AI disruption by being patient, understanding the technology, and potentially offering new types of learning experiences that leverage AI.

What advice does the panel give for investors looking to invest in AI within the education sector?

The panel advises investors to look for systemic solutions rather than single solutions, to focus on the people behind the technology, and to consider the long-term potential of AI in transforming education. They also suggest being patient and avoiding the urge to invest in every new AI opportunity that arises.

Outlines

00:00

🌟 Introduction and Panelist Introductions

The script opens with a welcoming statement and sets the stage for a panel discussion on AI, emphasizing the importance of following the money to understand the direction of technological advancements. The moderator introduces the concept and invites panelists to introduce themselves briefly. Each panelist shares their background and professional focus, ranging from strategic investment banking in education to open innovation networks, financial advising, private investment, and educational entrepreneurship.

05:00

💡 The Role of Funding in Shaping AI's Future

This paragraph delves into the influence of funding on the development of AI technologies. It highlights the distinction between smart and passive investment, the importance of understanding the current lack of defined business models in AI, and the need for backing smart individuals and ideas. The conversation touches on the patience required for investments in AI and the acknowledgment that not all ventures will be successful, drawing parallels to the early days of the internet.

10:02

🤖 AI Investment: Separating Hype from Reality

The panelists discuss strategies for distinguishing between genuine AI innovations and superficial plugins. They share insights on evaluating the reliability of AI tools, using examples such as plagiarism detection tools that turned out to be inaccurate and biased. The conversation emphasizes the importance of identifying deep intellectual property and the challenges of investing in transformative technologies that require significant market adaptation.

15:04

🏫 Perspectives on AI in Education and Talent Development

The discussion shifts to the implications of AI for educational institutions and the importance of talent development. Panelists explore the challenges of digital transformation in existing institutions versus building new ones, the international dimension of talent flow, and the concentration of AI expertise in English-speaking countries. They also consider the potential for universities to take a more active role in AI development and the benefits of reducing waste in education systems through AI.

20:06

🚀 The Intersection of AI, Education, and New Revenue Streams

This section of the script discusses the potential for universities to create new revenue streams through AI, such as by spinning off capabilities or partnering with investors. It also considers the impact of AI on the academic world and the possibility of personalized learning at scale, which could disrupt traditional higher education models. The panelists suggest that AI could offer solutions to inefficiencies in education and potentially create new business opportunities.

25:07

🧑‍🎓 The Human Element in AI-Enhanced Learning

The conversation turns to the importance of the human element in learning, with AI providing time for educators to engage more meaningfully with students. Panelists discuss the potential for AI to enhance human interactions and the opportunities for investors in backing entrepreneurs who are building systems that promote human flourishing. The discussion also touches on the business-to-consumer opportunities in education and the role of community in higher education.

30:08

🏛 The Future of Universities and AI Integration

The panelists consider the future of universities in the context of AI integration, discussing the potential for universities to spin off activities into separate companies and provide services. They debate the defensibility of AI investments and the importance of universities being AI-first. The conversation also includes personal perspectives on where panelists would prefer to place their children's education, emphasizing the desire for innovative and engaging learning experiences.

35:09

🎮 The Role of Gamification and Engagement in Education

The final paragraph explores the crossover between entertainment, health, and education, with a focus on the potential of gamification to enhance learning. Panelists discuss the engagement levels of platforms like Fortnite and the idea of using similar principles to make learning fun and voluntary. The conversation also addresses the importance of adaptability and the need for students to develop a broad base of knowledge and skills, including emotional intelligence and technology literacy.

Keywords

💡AI

AI, or Artificial Intelligence, refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. In the video's context, AI is a central theme, with discussions focusing on its impact on education, investment opportunities, and the future of learning. An example from the script is the mention of AI's potential to transform universities and schools, indicating a significant shift in educational technology.

💡Investment

Investment, in this video, pertains to the allocation of funds or resources into financial assets, technologies, or initiatives with the expectation of generating a profit or achieving a financial return. The script discusses various perspectives on where and how to invest in AI, emphasizing the importance of identifying smart investments and the challenges of distinguishing between opportunistic and strategic funding.

💡Educational Technology (EdTech)

EdTech is the use of technology to enhance or facilitate learning and instructional outcomes. The script frequently references EdTech, particularly in discussions about how AI can be integrated into educational systems to improve personalization, efficiency, and student engagement.

💡Digital Transformation

Digital transformation refers to the process of converting non-digital or semi-digital systems, processes, and enterprises into fully digitalized ones. The script mentions digital transformation in the context of building universities and schools from scratch, indicating a fundamental change in how educational institutions operate and deliver services.

💡Strategic Consulting

Strategic consulting involves providing expert guidance and advice to organizations on making key business decisions and planning for the future. In the script, one of the panelists introduces their role in strategic consulting, specifically in the context of education, where they work with institutions on strategic initiatives.

💡M&A Advisory

M&A Advisory refers to the services provided to assist clients in mergers and acquisitions, helping them navigate the complex process of buying or selling a business. The script mentions M&A advisory in the context of working with educational institutions and emerging growth stage companies to find partners in the marketplace.

💡Innovation Network

An innovation network is a collaborative community or system designed to foster creativity, collaboration, and the sharing of ideas and resources. The script discusses the role of such networks in open innovation, particularly in Latin America, where they are used to transform and build educational institutions.

💡Plagiarism Detection Tools

Plagiarism detection tools are software programs used to identify instances of copying or potential intellectual property theft in written works. The script references these tools as an example of where investment has been made, but also points out their limitations, such as inaccuracies and biases.

💡Adaptive Learning

Adaptive learning is an educational approach that uses technology to customize learning content and pacing to individual students' needs. The script mentions adaptive learning as a benefit of AI in education, suggesting that it can lead to improved student experiences and outcomes.

💡Gamification

Gamification is the application of game-design elements and principles in non-game contexts to encourage engagement and motivation. The script discusses the potential of gamification in learning, suggesting that it can make the educational process more enjoyable and effective, particularly when combined with AI.

💡Human Systems by Design

Human Systems by Design is an initiative that emphasizes the importance of considering human factors and experiences in the design of systems, particularly in the context of AI and technology. The script refers to this concept as a way to challenge traditional thinking and promote human flourishing in a world where technology is increasingly prevalent.

Highlights

The importance of following the money to understand the development and future of AI technology.

The distinction between smart money and passive opportunistic money in AI investments.

The need for patience and flexibility in AI investments due to the evolving nature of the technology.

The challenge of separating effective AI tools from mere plugins or inaccurate solutions.

The role of AI in transforming traditional educational institutions versus building new ones.

The significance of the flow of talent in the development and concentration of AI capabilities.

The potential for universities to spin off AI capabilities as a new revenue stream.

The impact of AI on the future of higher education and the potential for personalized learning at scale.

The importance of human interaction and community in education, despite the rise of AI.

The potential for AI to solve problems without relying on human experience.

The opportunity for universities to develop AI filters or regulators as a service.

The role of AI in creating new revenue streams and optimizing educational experiences.

The potential for AI to transform the relationship between enterprises and educational institutions.

The importance of adaptability and creativity in the age of AI and their role in education.

The potential of gamification in learning and its impact on student engagement and outcomes.

The need for a balance between AI in education and the preservation of hard skills and human interaction.

The discussion on the future of education and the potential for AI to redefine the learning experience.

Transcripts

so hello Ola wosas We can do this um

panel in Spanglish I think know with the

combined language capabilities of this

table uh so welcome and thank you for

joining especially because I know

another session at this time is

something very catchy like what

university pres don't want to tell you I

know if I wasn't moderating this I'd

probably be in that room so we do have

an interesting topic at hand um and when

I was assigned this panel immediately my

my father popped in my head uh my father

doesn't have a university education by

the way but he always says if you want

to understand why something is follow

the money right so really I think there

there's a lot of wisdom in that and when

I think about Ai and the possibilities

but also the challenges that are ahead

of us um I think it's very important to

focus on the money aspect right because

we need to think about what is funding

the technology who is behind the the

funding as well and the decisions about

budgets and where the money goes are

going to be really important in terms of

shaping the future that we all want to

have so uh again thank you for coming

and we're just going to go around really

quickly please be fast and introduce

yourself name what you do no more than

30 60 seconds go um happy to be here

Morgan battle managing director of

Tucker Capital we are Strategic

investment bank that's been around since

1982 and we focus on education

exclusively probably for the last three

and a half decades um it's a mix of

strategic Consulting and m&a advisory we

work with large systems like Southern

New Hampshire University um National

Geographic on strategic initiatives and

we work with emerging growth States

companies looking to find Partners in

the

marketplace hi I'm Fernando Valenzuela

from Mexico I work in all of Latin

America I'm the CEO of uh

company called at latam Alliance which

is the largest open Innovation Network

in the region and we basically transform

and build universities and schools from

scratch and digital

transformation alexand Schindler uh I'm

currently a senior advisor for financial

institutions and designing business

strategies for those have been on the

board of an asset management company in

Germany uh assigning basically 6 million

clients on a global

basis um Eddie Lopez uh founder of uh

just private investment firm Columbus 70

Investments and uh I'm on the

international Advisory board for SEC and

uh uh we invest pretty much industry

agnostic but we have a lot a lot of

focus in in healthc care and uh and

taking a look at um uh using technology

and education in AI so hi I'm Al Nan I'm

an entrepreneur by nature and board m

New World International School located

in M um our vision and ambition for the

school is to build a holistic learning

approach which isn't available at the

Contra at the moment okay great so this

is interesting it's a bit of a mly crew

we have an interesting mix of

universities in K through2 investors m&a

the money people so I think we'll get a

variety of perspectives great uh but

starting with you Morgan because you

work kind of across all of these people

um you know what would you that the

smart Investments are right now when it

comes to AI what are you seeing where's

the money flowing yeah well your dad was

100% right um money uh follows energy

and opportunity and when you see it

flowing in a certain direction smart to

pay attention attention to it I think as

it relates to AI there's a big

difference between smart money and

passive opportunistic money I think

everybody doesn't want to miss the boat

so private Equity Venture investors

they want to get involved in AI in some

capacity and I think entrepreneurs if

you don't have an answer to AI or you're

an incumbent and you don't have an

answer to AI you're going to be left

behind but I think ultimately the

difference between the smart money and

the passive opportunistic money are

those that understand that there are not

defined business models right now um

there are not Innovative strategies in

investing that's going to change the

game it's around finding smart people

backing them and being Savvy enough to

sit back and be flexible and to stay

curious and all the speakers this

morning corroborated that but it's

around people who really understand that

we are in this inflection point in Ai

and as such we need to let it develop a

little bit uh and the prognosticators we

never really listen to them we certainly

don't think of ourselves as as

prognosticators but it's no different

than what happened was going on when Co

said in everyone had their own opinions

on how the future was going to play

most of those opinions did not end up

being sound perspectives so I think we

have to be patient and the patient

investors are looking to find really

smart entrepreneurs and giving them the

space and the time to figure it out and

not apply undue

pressure a lot of wisdom in there I

think so how then if you an investor or

if you're running an educ educational

institution you have to make an

investment in a AI how do you separate

the wheat from the chat how can really

tell that it's not just some AI plugin

that really you could do with open

source chat GPT um how do you determine

that the AI is reliable so one example

that comes to mind was all of the

investment in the world that went into

the um plagiarism detection tools which

then we discovered are really not that

accurate and they have a lot of bias and

so you think about those two examples

one is when it's really just a bolt-on

tech that's not deep IP right and

there's not there's nothing really there

or cases where it's just not good so how

do we make those decisions um maybe I'll

throw this one over to you Eddie because

you're a Serial entrepreneur uh that's a

great question because uh again for us

especially you know that I think when

you're an investor you you're either you

know at the level of like a the Saudis

with their Sovereign wealth fund that

are making a massive investment to AI uh

or you're kind of in that smaller uh you

know playground kind of where we are

kind of you know with these emerging

Technologies and so it's really really

important for us because we can't drive

the shape the market so we have to be

very smart about picking what's what's

actually real or what's just hey

somebody's able to throw something

together and put on a good show based on

the reaction you know again everybody's

like oh we don't want to miss a boat

this is a big you know you know thing

that we've got to address and so we go

out and try to get everybody excited

about the money and um you I think we're

going to see a lot of things come and go

obviously and that's part of the natural

process but uh for us we it's really

about trying to get really uh good

reliable people you know coming to

things you know events like this and

learning more uh which just things about

education right you need a broader base

of understanding uh so you can evaluate

things the right way and and like you

were saying just be be a little more

patient right uh maybe that Apple

approach let somebody else you know take

the lead and then come back and you know

and do it better F and smarter um uh but

for us right now we're just really

relying on that balance between um the

experts so-called experts in the field

which you know are being formed every

day because it's it's evolving so much

and uh and then balancing that out with

um you you still can't get away from you

need the right people running the

company and and have you know good

operators and a good vision and and

those Partnerships that that you think

can help make it successful so so kind

of what you're is maybe the first mover

Advantage when it comes to investing in

AI is overrated yeah and from our

perspective we're telling a lot of our

real estate companies to hold off on

taking on investment for as long as they

possibly can um to wait and let

everything sort of settle down and then

find the really good investors the

partners they're going to help you

develop the asset so Fernando you

represent or work with a lot of um

institutions that are trying to

transform uh digitally right and I I'm

guessing that making decision about

where to spend their money on technology

as part of that so what advice do you

give them considering everything we've

discussed so far yeah so I would I would

say there's many dimensions to it first

we're seeing that it's easier to build a

new institution that to transform one

that already exists which is a

significant challenge we're seeing flows

of money from people that used to fund

universities used to help these

universities and now they're saying it's

easier probably to build something new

the second element and I would would

probably add this uh International

Dimension has to be with the flow of

talent if you look at the amount and the

density of Engineers that are building

artificial intelligence data all of that

you see a concentration in certainly not

in Emerging Markets certainly most of

them are happening in English so when

you look at these dimensions in terms of

where is the talent flowing I think that

is probably something that is not

considered as

important as the flow of capital but I

would say we need to look at the flow of

talent as well and the density and

concentration of AI you see you know for

example I ran into into a report that

was looking at the amount of Engineers

that are living the

financial segment the IT people that

used to work in banks that now going to

Google Amazon of these type of companies

so I would say that we need to look at

the balance between you know emerging

market

Talent Capital all together because

everybody's talking about artificial

intelligence but it's at the end is the

talent that is building those and with

what type of approach they are building

these models and with what type of data

so if you look at how close you are to

the US to the UK and so on and the

amount of benefit that you can get from

AI is totally different when you look at

it from you know Colombia or some of

these other countries that don't have

that amount of cultural prop Pro imity

so I think this is an additional

dimension for us to be discussing okay

wasn't expecting the conversation to go

in that direction but super interesting

U so Nan you uh run a school right so

another uh group stakeholder here how

are you thinking about in terms of your

budget and investment that you're making

because there's a limited amount of

money you can spend so are how much are

you willing to be flexible in terms of

investing in AI um AI literacy all of

these things I mean at the moment of

time having a look at our Opex structure

we're spending a lot of money especially

our direct costs um which accumulates

85% of our costs directly to the

teachers themselves um while 25% of our

indirect costs are related to marketing

and AD Visions I do agree with the fact

that we should jump on board directly

with the with the technology that coming

on board but however as we've heard

about uh the talks earlier today

incremental investments will be the way

forward to understand the utilization of

uh such a structure um a lot of those AI

tools that are available currently at

the market enhances the students um

experience within the school not just

the well-being however we look at the

academic performance but we're looking

at adaptive learning and um uh Taylor

Made uh Pathways to students that wasn't

the case when I used to be in schools

those factors would come into

determination in terms of having high

retention rate for the students that

already are in school and would generate

a lot of Word of Mouth that comes uh

from those kids and their parents so we

could reduce the amount of money spent

within Admissions and marketing while

putting that money onto incremental Sol

solutions that could come on board uh

improving the well-being of the students

the academic performance as well as

giving more time for the teachers to um

spend that physical time with the

students instead of planning and and

Grading so it it we're willing to reduce

sums on those high-end um cost

structures into into the AI tools space

okay that's a definitely a very

interesting use case is the back office

right not just the cpilot in the

personalization but what it can do to

free up that human um availability of

the teacher to be with the students but

I'm curious how do you decide who to

spend your money on because you've

talked about the what but to my previous

question how can you pick the the

solutions that are legitimate and that

are that are good people behind it as

well I mean we're we're we're lucky

enough to be in a lagging uh Community

back in Oman uh we aren't very much risk

we aren't we aren't willing to take

risks with uh huge disruptive

Technologies it gives us the time to set

benchmarks and understand from the

problems that other um incumbents in the

education industry had fallen into so we

can build our mitigations against those

risks that are potentially to happen um

so we aren't putting our eggs all on one

basket in the in the AI sector we we're

willing to wait and see how it develops

before we take that initial steps

towards investing in artificial

intelligence so again I suppose maybe

patience is a virtue that we should be

thinking about when it comes to AI here

okay um so Alex myself in my consultancy

I work with a lot of global 500

companies like HSBC novaris you know

Google Unilever Etc and they're allram

to come up with a strategy for upscaling

and reskilling their employees around AI

I don't spend a lot of time with highed

at universities and so this is

interesting right and see you really

hear in higher ed you know they're all

focusing that but maybe not thinking

about industry so much and I'm wondering

is there do you see a space for better

collaboration between the skills and you

know the talent that universities

develop and what what companies need or

possibly to even co-create this AI of

Skilling strategy yeah yeah thank you I

think we can uh Echo to some extent what

Fernando said uh there's a lack of um

from my point of view a lack of uh

existing skills both at the investor

level as well as currently at the

academic level so there has to be more

cooperation and I think you're

absolutely right in your assessment and

one can even uh prove in a way that in

the financial industry you have at least

for the last 30 40 years quantitative

methods in the investment process and

these methods running on algorithm and

and models they have been developed

either inhouse by the large uh

institutions or in cooperation with

universities because usually within an

uh investment organizations you hardly

have sufficient skills to really cope

with with the chall ches another

important issue which comes to my mind

is the quality of the tools as you have

mentioned uh I think we need uh skilled

people who can basically judge on the

quality of the different schools offered

uh tools offered by thirdparty providers

or in-house

developed and who might those

intermediaries

be I mean on one hand and I think

universities other than today at least

here on on the European continent could

utilize their research to a lar much

larger extent as they do today that

leads again to cooperation you have

could even give mandates to to or um

contracts to universities to work on

specific

tasks um on one hand and on the other

hand like like Eddie mentioned I think

we need intermediaries like like for

example your company to

identify um those developers of AI uh

tools that are worth investing to I mean

we always have to accept in this early

stage that um out of 10 maybe eight will

will go right but the two uh you invest

in might then generate the returns you

expect okay or maybe it's this sounds

like a plug I'm not getting paid but you

organizations like Titan or Tucker

Capital Etc that could potentially play

that role no as referees you have

specialized specialized players in in

this uh respect again yeah because

companies like mine we are tightly

regulated we can invest only

into U those stocks which are already

listed on stock exchanges so they we

come in very late so what we do we buy

the Microsoft's Google Amazon and others

today uh these two can invest in the

early and what what is left we take over

exactly hopefully okay yeah I oh so good

no go ahead no I would say yeah I mean I

think uh part of investing in whether

it's in this or when I'm looking at

Health Healthcare traditionally and

education are are two you know they they

are creatures of habit right they they

they have their their ways of doing

things thinking things we know education

is very fragmented in different theories

on how how to how to impart this

knowledge and how to do it but so what

we would focus on is what are the AI

technologies that seem to be uh you know

applicable for maybe when you're

starting a new school versus you're

running one yeah I mean surely there's

very transformative technology but how

many schools are ready to take that leap

and go a totally different direction you

know with with what AI can accomplish

whereas there could be things that

student experience maybe making teachers

more efficient so they can be more you

know facilitators versus just having to

run a classroom and more so more likely

to if you're going to make place a bet

on you know getting in early maybe some

of those um and it's always that balance

right because where investment goes uh

that might be that might ensure that

that's the a AI technology that becomes

prominent and becomes sticky and then

it's there something better comes along

it's too hard to uh to switch to it so

that's that's always the the danger

there you know so is is missing

something else Fernand yeah one one of

the things that I wanted to complement

is that we we are seeing more and more

that than the boundaries that were

traditionally between Education Health

financing are beginning to blur

certainly education and healthare

exactly so so this did not happen two or

three years ago so you're starting to

see how fintech healtech and ettech are

becoming a solution and when you look at

it from a from an educational

institution perspective there's a number

of elements that they are not able to

break these boundaries still on so they

are still seeing you know the faculties

of health and the faculties of Science

and are totally different so AI is

beginning to connect these dots the

capital should flow on that and the

other element that I wanted to bring is

the the level of waste that happens in

the education systems so you waste time

you waste space you waste information

and you waste human Talent so so when

you look at it and you put it through

the AI eyes if you connect healthc care

fintech attech and you reduce waste the

level of return that is going to happen

in the education segment is going to be

maximized so you're going to have return

on time you're going to have return on

information you're going to have return

on investment return on learning so

there's many other dimensions that are

probably not as evident it makes me

think I don't know how many of you were

listening to George the last talk about

kind of the shift in this AI world that

we're in now from um to ontologies right

and kind of relationships and so silos

are not our friends here know and so to

think about how different um you know

even areas of investment can be

connected I potentially unlock a lot of

opportunity um but thinking as well of

of new revenue streams right because I

know particularly universities are kind

of scrambling right now um being

disrupted and it occurs to me maybe you

want to for this Al uh you know could

potentially this partnership between

universities and say industry or schools

Etc become a source of new income for

universities um as I said earlier I I

definitely believe and it has to be an

important source of revenues for

universities I I think uh you could even

imagine that universities spin off

certain

capabilities and have uh investors

participating taking a share yeah in in

those

Enterprises um I think that's that's

definitely the road to go and as it has

been said by Fernando I believe that uh

in 10 years from now the the educational

world will look totally different from

today I mean at least the academic world

well even you know you think about Ai

and its potential which really is kind

of a reality now to offer personalized

learning at scale does that just mean

that higher education as we know it is

dead because having smaller campuses it

cost 100 Grand a year $100,000 in some

cases um now you can scale that right

much faster cheaper um what are you I

think we we used to think that the size

of a school was the number of chairs

that they had which is totally incorrect

so the you know the use of physical

space needs to be changed and needs to

be optimized but I think with with AI

something new comes up is that

experience used to be the main asset

that you had now you can solve problems

without experience with AI so that

creates a different relationship between

Enterprise and schools and the other

thing that I think is going to create

additional Revenue flows revenue streams

is going to be the fact that since AI

cannot be regulated it can only be

filtered it can be curated to you so you

can control sort of what we're doing

here we're putting an AI that is

filtering on this event the level of

content all of these universities all of

the schools are going to have this

regulator this filter and that I think

is something that universities could

develop for other universities for

schools for the system so it's going to

bring additional Revenue flows

additional connection between research

and deployment of AI to optimize this

uhuh that's interesting a a Spanish

expression comes to mind so for those of

you who speak

Spanish and I think about the regulation

right there's almost no way to put Gates

on the sea you can't stop it from

flowing and so you know but we have to

do something about it because if we

don't know what the rules of engagement

are we don't know what our sandboxes

people aren't going to play with AI uh

so I think about companies right now as

I was saying they're all scrambling what

are the rules you know people either

they ban AI you can't use it right

employees aren't supposed to touch it or

it's a free for all and then they get in

trouble know and so again I I think

there really is a real opportunity for

universities for some of these

independent experts to come in and play

a role across the

ecosystem um so one thing we talk a lot

we're talking about you know the people

who are buying the technology the people

that are investing in the technology

that are making the technology what

about the people the Learners that are

using the

technology um I would love to to hear

from you Morgan about this what do you

think it me for them and and from a

financial perspective where are the

opportunities yeah um I think about it

from both the learner and the teacher

perspective because all education is

about learning I think the reality is

that AI is going to give and it's going

to take away and we've talked a lot

about certainly this morning things that

it's going to take away what it's going

to automate what it's going to replace

but we've also talked about the things

that it's going to give which is time as

you mentioned and the ability to create

meaningful

relationships and you know I'm a little

bit biased because my colleague is

working with George seans who we heard

from this morning on the initiative

coming out of Southern New Hampshire

that is called human systems very much

by Design because it is challenging us

to think about how we are human now in a

in a new world where a lot of the things

that we held in higher regard that we

leverage as our own Identity or

expertise are being sort of taken away

or made redundant so I think it's

forcing the learner to be human to

engage in content in a more experiential

way for educators to relate and interact

now that they have time in a more

intense and engaged way and I think

opportunities that Empower that so

investors are looking from our

perspective to back entrepreneurs that

are Building Systems that allow for the

human flourishing to develop in a more

accelerated way and a more authentic way

not to oversimplify or E even sort of

refer back to this morning but I I think

everything that we heard in the three

hours this morning speaks to that

element and what about the business to

Consumer opportunity um do we even need

the middleman of the University anymore

is from an investment perspective are

you seeing uh anything interesting in

that space yeah I mean I think it's

consistent with people claiming that the

university system was dying 10 years ago

and arts colleges were going to go away

I think our perspective is you can never

just replicate that relationship and the

communities that are developing which we

all thrive on every single person at

this table in this room needs um I think

the opportunities are still going to be

there for higher ed to play a critical

role in community building and the

facilitation of relationship so I don't

I don't see those models going away I

think some of the smaller universities

will certainly struggle but if you an AI

first University thinking forward about

how to incorporate AI in a smart ethical

way I think you can survive the the wave

and ultimately be patient because things

are going to settle down and there'll be

Norms that everyone sort of responds to

so you don't think brick and mortar is

dead no no Fernando what do you have to

say about that yeah I would I would also

agree I think one one of the elements

that is happening is that we we thought

that we could solve this with one

entrepreneur one solution one type of

investment and I think

nothing that you can let let me put it

like simplifying nothing that you can

buy a license for is solving a real

problem so you need a lot of nothing you

can buy a license for is solving a real

problem so investors in the room so what

what I always tell investors to do is

look at more systemic problem it's more

of a mergers Acquisitions collaboration

open Innovation that it would be in

investing in the right entrepreneur or

the right solution so you need to look

at it horizont and the other thing is

what is happening right now if you think

about two axis you you have the human Le

activities and the Machine lead

activities and in those layers you

you're going to have to think everything

through the human eye to say does this

make sense that a human is doing that or

shall I relate that to a machine and

then what happens is you're going to

replace a lot of functions a lot of

costs that are currently happening in

the human activities that should not be

happening anymore and then you need to

elevate the human activities as you

elevate the machine so that balance is

is just starting and it's very complex

but when you look at it from the

opportunities to maximize revenue

streams reduce costs be more profitable

and S bigger challenges then that's when

the discussion is going to become

interesting and I'm GNA throw this to

you because I I love your perspective

because you don't actually live and

breathe education Tech right Health Tech

investor how do you see this would you

be placing your your on higher ed uh uh

so I tend to think yeah I think it's

even you know I think it there's higher

ed definitely a focus but I think it

goes all the way back to you know you

know even primary um and because of the

like you said the interconnectivity now

and the blurring of those you know the

lines and so I'm very involved in

healthcare and we are seeing that in

fintech what are the three things that

touch everybody it's Healthcare

education and finances right and if the

benefit of of using AI is to change a

young student's mindset from just having

to go to school put his uniform on you

know take in knowledge regurgitate it to

opening up the ability to be more

creative and understand what it is to be

human and what their purpose is then I

think the my I would focus my

investments on what are the technologies

that are encouraging that behavior

because the time where you're going to

just get a job work at it for 40 years

retire with a pension that's gone all

right everybody's you know so what is to

be human we're we're so successful

because we are adaptable and we can live

in any environment and we've found a way

to you know overcome all kinds of

obstacles you know um and that requires

creativity and a lot of that has been

driven out with the traditional

educational model and we've seen these

silos so as we are now breaking down

those walls what are the what are the

technologies that are starting at a

young age creating those new minds

because it's going to take a while right

you know you know the the the you know

these industries are slow to change but

technology does accelerate it puts that

hockey stick on on change uh some for

good and bad so but what what are those

technologies that are going to release

that creativity to as we transfer more

things to machines okay allow us to

solve the the real problems right so you

bullish on Early Education interventions

mental health yeah right yeah yeah where

would you be placing your

best first of all I hope that that uh in

general in the education system students

will have the chance in the future to

get a broader base of knowledge than

today because I think over the last 20

30 years uh students have been in a way

forced to be at a very early stage

specialized on a particular field and

the worst case could be that you finish

your studies and the the jobs are gone

right um just a world on on the human

aspect which has been discussed this

morning you mentioned it as well I'm a

bit concerned that uh if we have we get

some spare time from the use of AI that

at least in aging societies um that

space will be filled by increasing

productivity of the individual so

meaning that the individual will have to

work more or on different tasks so I

hope for the better but I'm not sure

what we see right now in particular in

the for example in Germany in the

machinical mechanical engineering

industry

is definitely a Supple

supplementing uh a lack of skills and

personnel with

AI where would you be putting your money

or where are you advising your clients

to put their

money um mental health for sure Early

Childhood 100% you think about the kind

of people that anyone here wants to hire

it's the kind of person that can come in

hold the room

speak to everybody differently based on

immediate reads on who they are that's

emotional intelligence those are the

soft skills that are really really hard

obviously the hard skills are a lot

easier because they can be more rapidly

taught the last time many of us are are

uh empowered to develop those soft

skills are an early childhood education

and then the curriculum gets

standardized and all of a sudden we're

on the sort of regimented path but I

think that Empower soft skills early

childhood education uh mental health

technology oriented curriculums you know

as much as I would want to resist that

it is a non-negotiable in the new world

to be able to speak to AI because that

is that is the thing that's not going to

go away so we need to embrace it so

skill sets from a technology perspective

that you can learn throughout your

entire Learning Journey I think is going

to be important and good bets will be

made in that area so

I was I was getting scared that you were

going to look at me now you were hiding

I I was trying to hide yeah I I I think

yeah please I I I think this is this is

not going to come from the traditional

perspective I was looking at the gaming

industry if if fortnite was a university

it would have 70 million students and it

would have 300 hours average use so I

think what is going to happen is the

crossover between entertainment

health education I think we missed it on

the engagement I think we think that

education should be boring and I think

that is going to change radically so I

see that it's coming from the outside so

you know Uber would not be looked at it

by the taxi drivers I think education is

not looking outside for this type of

innovation and that's where I see the

combination between Ai and other human

Endeavors that is going to transform us

I that's a that's a great point because

when you're young learning is fun right

then some at some point it becomes not

fun because you don't get to be creative

or but when you have these programs that

can gamify learning I've I've seen

models where you know the children left

to be independent you know you would

think you know humans tend to be lazy

and they won't but they actually are

more advanced their peers that are in

more traditional education because it's

it's fun and meanwhile the AI realizes

oh they they need some more development

here they've mastered this skill I don't

need to keep repeating that over there

we need to have them work on this but

because it's fun they do it voluntarily

and they become more advanced and then I

think what you'll see is when they're

older too where do you invest where

where are people voting with their

dollars right so if they are

understanding hey this technology or

this school is going to empower me to be

able to adapt and and and be successful

in different fields or whatever or

lifelong learning I can come back and

and they've got an accelerated way

because they know how I learn and

they've got programs for me to you know

switch careers and do whatever those

those would be the Technologies I would

even add to that I mean a lot of the a

lot of the grow stage companies that are

getting a lot of attaction in the

marketplace that we're around are the

game based learning companies and it's

not just Early Childhood it's k through

eight I think fortnite is a really great

example it's banned in my house as of

last week is absolutely pervasive but

there's something actually follow that I

mean it's been a little bit of a

resistance over the last once the K are

in the garden

they then you will teach them to become

hackers exactly now there are times

where I came in my son was sort of

sneaking in in the corner but if if for

if you take the principles of fortnite

the engagement and you actually use it

for good from an educational perspective

which some assets are really doing right

now but I think those kinds of platforms

hopefully are more right what you said

before we missed the vote on engagement

though um 100% but there are some you

know there are outliers like I think of

du lingo I think it's a great learning

experience that it's very it's it's

effective but it's also fun however I

think we need to be very careful uh

education is not the same as

entertainment and learning is hard and

it's

marathon is a different and putting a

leader board on something you know for

workplace learning just just give me

give me one one one point the the

question that you asked students the

most is when is this torture going to be

over when are you finished with learning

yeah and you don't ask that in fortnite

no that's true right point point make

good point so any more free investment

advice from this this panel I mean the

factor of uh adaptability is something

really important to look into uh both

for the educational institutes as well

as for the students that are going into

a more complex life

uh not just in terms of the workplace as

well as the geopolitical issues that are

going around and how they could build

themselves up as themselves rather than

being U monitored and controlled swayed

away with the technologies that are

available that are coming up as

well I I would I would also say um you

know George's um word of caution or

urgency that universities need to be AI

first I think entrepreneur

and growth stage companies have to have

ai as part of their value proposition or

they just won't be taken seriously they

can't be time no can't it has to be

legitimately defended but I've had I've

had investors come to us and say great

asset but they had no response to AI

they could have just had two pages on

the back yeah and sort of educated

themselves on how it could tie into

their platform down the line but because

they didn't they were taking off the

table or sometimes as you were saying

before for not know maybe the easiest

way is just to tear it down start

over Okay so we've got a few minutes for

questions I think uh this gentleman here

I question to all of you and what you

said about University so we have a

center for business Innovation that's

educating people that that need to

understand

AI the question is we've had a couple of

investors who said well why don't you

spin it off why don't you just spin off

some of your activities into companies

that they can provide service we've been

talking more about companies that

provide services to universities but

potentially universities spin off or

would you look at that and say oh my God

com from a different point of view in

other words you know as you think about

AI

investments will that be an

opportunity you want to answer that yes

yeah 100% that's already happening right

so I think there's no question I think

there's a lot of resistance to

universities taking risks certainly that

is the ecosystem of universities

anything that challenges the central Hub

of the admissions enrollment Revenue you

don't want to mess with it what you're

talking about is a version of innovation

that actually makes a lot of financial

sense and act Builds on that Central

engine of of of profitability but

there's already a few really good

examples of universities doing that and

I think there's another good reason

Bruce um if you don't allow this to

happen then universities will lose their

skill people exactly yeah let let me add

one one dimension uh we built one brand

new University in Mexico and as opposed

to having the university going to the

industry we have the industry inside the

university building new products and new

models from within so I think that is

going to be more and more the common

threat is business is going to come to

the university again

okay yeah we another question in the

back of'

and to see you there know you get ADV

question i' to ask I love that Shameless

plug that was really well

done but your

question create

whe investors are divided but every IET

isy to Meuse of is defens can you

explain what OTE is for those of the

audience that don't speak English as the

first

language that gives

as

defensibility

eases

youant do you thinki that or is that

my my perspective is I don't know yeah I

mean that's one of the things that I I'm

I think we as a as a group are waiting

to see because you could see a lot of

reasons why um it's it's actually not

possible to create a defensive position

um but I'm sure there are smart people

much smarter than me that would make a

case that that's wrong I would I would

have certain doubt because I mean you

listen to EU regulation this morning if

you have to uh provide full transparency

on your algorithm and everything I mean

there will be somebody next door who is

going to copy that yeah I personally I

know I'm moderated I'm not supposed to

participate but I I really think that in

some cases yes um but it's I don't think

any Moe full stop is forever right right

bu you time but if you do come up with a

true intellectual property IP you

developed AI I'm thinking U mik of our

conversation yesterday around you know

some algorithms that are really

gamechanging when it comes to um

identifying mental health issues for

example in that case if you really are

that much better than the competitors

and it's going to take them that long to

catch up maybe yes the question is we

don't know how you know how big that

window is I mean just look at the

example of open Ai and Microsoft exact

to preserve their positioning so

somebody will come in and buy that

well maybe that's

goal useful but where would you put your

children

child education especially we're always

know putting our money or our client

money into

risks uh for me it was a model I

listened to a podcast um on the other

day and it was a charter school which

you know again the public entities are

going to be the slowest to try new

things or make change so this was like a

private charter school and they were

bringing things back to the Socratic

method and using uh products like KH

Academy and some of these others to

gamify learning putting uh given the

students board agency and determining

you know they could choose how much they

study when uh and if they accomplished a

certain number of points then they could

choose the next week if not they had to

go back to more of a traditional model

until they got a specific thing done and

they were seeing tremendous results of

that because they were the the learning

was fun the students felt like you know

they were had control of their you know

their day and their future and that was

building you know you know the kind of

things that we're not building you know

right now in the in the traditional

model so that's where I would want my

children so that because they they're

not too young to start you know learning

those skills and uh at that age and and

and it it showed that uh they were two

years ahead like on standardized testing

compared to you know other students that

were in a traditional model even though

they had the ability to determine how

fast they were learning uh so to me that

that was a great use of technology and

that's you know because for I always

tell my children I'm the main reason I

send them to school because I have a

degree in education so I I could just

teach them at home they're there to

learn the life skills and the

interactions with other people and those

you know what it is to be human how to

read somebody else how to how to you

know really function in society and and

so if we can get back to more of that

versus just trying to fill their heads

with with information that's what I'd be

looking for you know I've got two

teenagers so the question of where I

want to put them right now I'm not g to

give honest answer but the in terms of

schools honestly I would take a huge

risk if I could and that the problem is

I can't because it's not available and

one of the reasons it's not available I

live here in Spain is there's such a

pressure from a curriculum standpoint

that even the schools that want to

innovate they are so limited in what

they can actually teach

that at the end of the day they're

forced to be traditional it's it's a

real problem and I think that's true of

most I think that's true in in most of

Europe and we should not forget those

who cannot have ex I I would like I mean

it's a little difficult for me because I

have my son in the room but I I think uh

I would I

would where's the

son so but but the one thing the one

thing that I would say is that you

cannot Outsource that to any school so I

think you need to complement and and the

the the challenge for us is to design

meaningful experiences that connect you

with different cultures with different

areas and find what is it that engages

and and where is you know that person

going to thrive so I think that is a

responsibility not only to say the

school it's only an x% or

whatever okay I think that's a wrap

[Applause]

good

[Music]

job thanks that

was we a yeah