GEF Madrid 2024: Financing Education in an AI era
Summary
TLDRThe 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
🌟 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.
💡 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.
🤖 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.
🏫 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.
🚀 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.
🧑🎓 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.
🏛 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.
🎮 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.
Mindmap
Keywords
💡AI
💡Investment
💡Educational Technology (EdTech)
💡Digital Transformation
💡Strategic Consulting
💡M&A Advisory
💡Innovation Network
💡Plagiarism Detection Tools
💡Adaptive Learning
💡Gamification
💡Human Systems by Design
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
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