INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD

PROJECT REPORT

of

“Business Environment and Legal Policy – BM-1105”

on

Analyze the effect of Artificial Intelligence on Business Environment in

“Education Sector”

Submitted By: Team 1

Himanshu Sharma (BM-022092)
Deepika Singh (BM-022075)
Kshitij Bharti (BM-022133)
Jahnvi Singh (BM-022124)
Divyanshi Mishra (BM-022083)
Lakshay Gupta (BM-022102)
Ashutosh Kumar (BM-022064)

Submitted To: Dr. Anindita

POST GRADUATE DIPLOMA IN MANAGEMENT

BATCH: 2022-24

INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD

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 ACKNOWLEDGEMENT

We express our deep sense of gratitude to our respected faculty Dr. Anindita for her valuable
help and guidance, we are thankful to her for the encouragement she has given us in completing
the project.

We are also grateful to our respected Director Dr. Urvashi Makkar for permitting us to utilize
all the necessary facilities of the institutions. We are also thankful to all the other faculty &
staff members for their kind co-operation, help and support.

Lastly, we would like to appreciate our deep appreciation towards the team members as the
completion of this project could not have been possible without the participation and
contribution in the project report.

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 TABLE OF CONTENT

S. No Topics Page No.

1. Introduction 4

2. Business Environment 5-7

3. Need of AI in Education Sector 8

4. Role of AI in Education Sector 9-11

5 Benefits of AI in Education Sector 12-14

6. Challenges of AI in Education Sector 15

7. Conclusion 16

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 INTRODUCTION

In this report, we are analyzing the effect of artificial intelligence on business environment in
education sector. We have talked about the business environment which indicates the aggregate
total of all people, organisations and other forces that are outside the power of industry but that
may affect its production.
Our daily lives revolve around two things: data and Artificial Intelligence. Whether we realize
it or not, AI has become an essential component in every given industry. Starting from AI in
sports, mobile apps, and construction to AI in education, the technology keeps carrying impact
across every domain with new applications and use cases. When it comes to education and
learning, the merger of AI with today’s digital learning system has brought a whole new
concept of learning into the industry vertical.
The digital education market, commonly known as the eLearning market, is projected to reach
$125.3 billion by 2031, growing at a CAGR of 26% from 2022 to 2031, all because of AI
services. Ranging from mobile digital courses to online references and virtual classrooms,
Artificial Intelligence in education has revolutionized the traditional conventional methods of
learning. With more EdTech businesses adopting AI technology, it’s high time we talk about
the benefits of Artificial Intelligence in the education market.
We have accumulated data from various websites to discuss use cases of AI in the education
sector. AI in education is more significant than we know. More than 50% of schools and
universities rely on AI for administrative assistance, with the rising emphasis on improved
higher education quality.

AI trends fuel growth rapidly in EdTech by improving student engagement with customized
courses, interactive lectures, gamified classrooms for skill gaining, etc., which is why the AI
education market is predicted to cross 20 billion USD by 2027.

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BUSINESS ENVIRONMENT

Business Environment is sum or collection of all internal and external factors such as
employees, customers’ needs and expectations, supply and demand, management, clients,
suppliers, owners, activities by government, innovation in technology, social trends, market
trends, economic changes, etc. These factors affect the function of the company and how a
company works directly or indirectly. Sum of these factors influences the companies or
business organisations environment and situation.
Business environment helps in identifying business opportunities, tapping useful resources,
assists in planning, and improves the overall performance, growth, and profitability of the
business. There are various types of Business Environment like Micro Environment and Macro
Environment. Good knowledge of the environment by business managers allows them not only
to recognise and assess but also to respond to the forces outside to their enterprises. The
significance of the business environment and its perception by managers can be understood if
we contemplate the below-mentioned following points:

• It helps in identifying opportunities and making first mover advantage: ‘Airtel’

identified the need for fast internet and took first-mover advantage by providing 4G
speed to its users followed by Vodafone and Idea. Asian paints lost market share to
Nerolac because it failed to match its technology.

• It helps the firm identify threats and early warning signals: Patanjali products have
become a warning signal to the rest of the FMCG. Chinese mobile phones have become
a threat for Indian mobile phone manufacturers.

• It helps in tapping useful resources: With the demand for the latest technology,
manufacturers will tap the resources from the environment to manufacture LED TVs
and Smart TVs rather than collecting resources for colour or Black & White TVs.

• It helps in coping with rapid changes: Jack Ma started Alibaba as he could see the
potential of interest in E-Commerce.

• It helps in assisting in planning and policy formulation: Multiple entries of Chinese

phones like VIVO, Gionee, OPPO, etc. have posed a threat to local players like
Micromax, Karbonn, Lava etc. to think afresh how to deal with the situation.

• It helps in improving performance: Apple has been successful in maintaining its

market share due to its proper understanding of the environment and making suitable
innovations in its products.

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Features of Business Environment:

(A) The totality of external forces

Business environment includes everything which is outside the organisation. If we add all these
forces, they will form a business environment.
Example: When Pepsi and Coca-Cola got permission to set up their business in India, it was
an opportunity for them and threat for local manufacturers like gold spot, camp-cola etc.
(B) Specific and General Forces
Specific forces are those forces which directly affect the operational activities of the business
enterprise.
Example: Suppliers, Customers, Investors, Competitors, Financers etc.
General forces are those forces which indirectly affect the functioning of business enterprises.
Example: Economic, Social, Political, Legal and Technological conditions.
(C) Inter-relatedness
Different forces of business environment are interrelated to each other. One component of the
business environment affects the functioning of other components.
Example: The increased life expectancy of people and awareness of health consciousness has
increased the demand for many health products like diet coke, olive oil, and so many health
products.
(D) Dynamic Nature
The business environment is dynamic in nature and keeps on changing in terms of:
(a) Technological improvement,
(b) Shifts in consumer preferences,
(c) The entry of new competition in the market.
Example: Many established companies in FMCG (Fast Moving Consumer goods) sector are
focusing on producing the goods with natural ingredients with the entry of ‘Patanjali Products’.
(E) Uncertainty
The changes in the business environment cannot be predicted accurately because of future
uncertainties. It is very difficult to predict the changes in the economic and social environment.
Example: There has been a sharp decline in the prices of Android smartphones due to the entry
of many new companies.

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(F) Complexity
All forces of the Business environment are interrelated and dynamic, which makes it difficult
to understand. Complex nature of Business environment can be understood if we study it in
parts.
Example: Increase in goods and service tax to 15 % would increase the revenue of the
government (economic), which would help the government to improve social being of people
(social) and reduce the personal disposable income of rich people and thereby controlling
inflation.
(G) Relativity
Business Environment differs from place to place, region to region and country to country.
Example: In China, the electricity to the industry is provided at cheaper rates as the
consumption increases and hence, it leads to mass production whereas, in India, it is otherwise,
higher consumption of electricity leads to costly electricity which results in lower production
& higher cost of production.

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NEED OF ARTIFICIAL INTELLIGENCE IN EDUCATION SECTOR

Artificial Intelligence is a branch of science producing and studying the machines aimed at the
stimulation of human intelligence processes. The main objective of AI is to optimize the routine
processes, improving their speed and efficiency (provided it has been implemented and
supported properly). As a result, the number of companies adopting AI continues to grow
worldwide.

AI in education sector transforms the learning experience by performing following roles:

• Producing smart content

• Contributing to task automation
• Ensuring universal access to education
• Providing 24*7 assistance
• Customizing information for every individual

AI solves several modern education challenges such as closing the technology gap between
students and teachers, keeping the learning system ethical and transparent, allowing remote
learning, and developing quality data and information solutions for the modern education
process.

Implying the future of AI in education, the technology addresses every little challenge in the
online education system. With 70% of the education centers migrating to complete online
learning platforms, the future holds better opportunities, assessments and differentiation in
learning.

The digital education market, commonly known as the eLearning market, is projected to reach
$125.3 billion by 2031, growing at a CAGR of 26% from 2022 to 2031, all because of AI
services. Ranging from mobile digital courses to online references and virtual classrooms,
Artificial Intelligence in education has revolutionized the traditional conventional methods of
learning. With more EdTech businesses adopting AI technology, it’s high time we talk about
the benefits of Artificial Intelligence in the education market.

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ROLE OF ARTIFICIAL INTELLIGENCE IN EDUCATION SECTOR
Global adoption of technology in education is transforming the way we teach and learn.
Artificial Intelligence is one of the disruptive techniques to customize the experience of
different learning groups, teachers, and tutors.

This is how Artificial Intelligence tools may be applied to improve study processes:

1. Personalize Education

Artificial Intelligence helps find out what a student does and does not know, building a
personalized study schedule for each learner considering the knowledge gaps. In such a way,
AI tailors’ studies according to student’s specific needs, increasing their efficiency.

To do it, many companies train their AIs, armed by the Knowledge Space Theory, to define
and represent the knowledge gaps, taking into account the complexity of scientific concepts
relations between each other (one can stimulate the learning of another or become a basis for
filling in the gap).

This is what it looks like:

2. Produce Smart Content

• Digital lessons
Digital learning interfaces with customization options, digital textbooks, study guides, bite-
sized lessons, and much more can be generated with the help of AI.
• Information visualization
New ways of perceiving information, such as visualization, simulation, web-based study
environments, can be powered by AI.
• Learning content updates
Besides, AI helps generate and update the content of the lessons, keeping the information
up to date and customizing it for different learning curves.

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3. Contribute to Task Automation

Administrative tasks simplification: grading, assessing, and replying to students is a time-

consuming activity that could be optimized by the teacher using AI.

Entrusting a set of routine tasks to AI helps teachers make room for something more important:
concentrating on grading the assignments impossible to delegate to Artificial Intelligence, self-
education, upgrading the quality of the lessons.

4. Do Tutoring

Continuously evolving personal study programs take into account student’s gaps to fill during
individual lessons. Personal tutoring and support for the students outside of the classroom help
learners keep up with the course and keep their parents from struggling to explain algebra to
their kids. AI tutors are great time-savers for the teachers, as they do not need to spend extra
time explaining challenging topics to students. With AI-powered chatbots or AI virtual
personal assistants, students can avoid being embarrassed by asking for additional help in front
of their friends.

5. Ensure Access to Education for Students with Special Needs

The adoption of innovative AI technologies opens up new ways of interacting for students with
learning disabilities. AI grants access to education for students with special needs: deaf and
hard of hearing, visually impaired, people with ASD…

Artificial Intelligence tools can be successfully trained to help any group of students with
special needs.

Role Of AI In Administrative Management

Currently, the reliance of educational institutions on automated ERP management systems to

conduct or oversee administrative operations, such as student registrations, course allocations,
dorm/hostel management, staff recruitment, fee collection, and many more, is expected to
decrease with AI-driven systems. This is mainly because the AI-governed applications require
very less, to be precise, no human interference, at all, to perform desired tasks, whereas the
automated systems, despite possessing automatic characteristics, still, require human assistance
to perform operations.

For instance, imagine registering a student to a course based on his/her rank, score, educational
background, and other aspects using an automated student information management system
(SIS). Such a system requires an operator to enter all the necessary details into the system so,
that it can conduct analysis and display the best result of available courses. Then, the operator
is facilitated to assign the desired course, chosen by the student, from the prescribed options.
While this process reduces the management’s burden of processing and analysing applications,

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it still requires manual actions to perform operations. Now imagine, conducting the same
procedure using an AI-driven system. Here, all the operations, right from automatically
receiving the data from the online form to assigning candidates to the right course from their
priority list, are performed without any human interference.

Nowadays, data security is one of the biggest concerns for educational organizations.
Educational institutions, such as schools, colleges, universities, and training centers have a lot
of sensitive information relating to students, admissions, enrollments, attendance, faculty, and
more. Utilizing AI eliminates the risk of data loss and cyber hacks.

Role of AI in Academic Management

The one section of individuals, who benefit extremely by adopting AI technology is the
academic management personnel (teachers/faculty/teaching staff.) The AI’s ability to auto-
grade papers, auto-evaluate assignments, assign homework, and many more, make it a perfect
tool for educators to simplify their job enormously. The capacity of AI doesn’t just end there!
It enhances personalized and individualized learning by seamlessly integrating with LMS to
share study materials, navigate through lesson content, create and view educational videos,
presentations, illustration artwork, images, audio lessons, etc. And, at the same time, it allows
students to attend tests and exams online on smartphones, tablets, computers, and various other
electronic devices.

Moreover, AI innovation encourages eLearning, in order to enhance personalized, blended,

competency-based, and differentiated learning methods by making, utilizing and overseeing
proper technological procedures and assets in teaching. Additionally, AI in education
incorporates different frameworks and tools that emphasize structure, improvement, research
and development, administration, and assessment of procedures to ease teaching and learning.

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BENEFITS OF ARTIFICIAL INTELLIGENCE IN THE EDUCATION
SECTOR

AI in education exhibits infinite benefits, such as helping teachers by taking over time-
consuming tasks, grading reports, maintaining reports, enhancing virtual AI schools and AI
classrooms, and so much more.

1. Personalized Learning:
Not every student adapts to knowledge the same way. Some grasp quickly, whereas some need
time. The conventional learning system lacked the concept of customized learning for every
unique student. This is where Artificial Intelligence comes to the rescue.
AI in education ensures that the educational software is personalized for every individual.
Moreover, with supporting technologies like Machine learning in education, the system backs
up how the student perceives various lessons and adapts to that process to minimize the burden.
This blend of AI and education focuses on every individual’s requirement through features like
AI-embedded games, customized programs, and more to learn effectively.

2. Task Automation:
With AI in schools and virtual classrooms, the technology takes up most of the value-added
tasks. Along with creating a tailored teaching process, AI software systems can take care of
checking the homework, grading the tests, organizing research pacers, maintaining reports, and
making presentations and notes along with other administrative tasks.
This is probably why businesses rely on integrated AI technology to achieve their day-to-day
goals. By automating everyday activities, AI makes the learning environment more
knowledgeable and productive.

3. Smart Content Creation:

Artificial Intelligence and Machine learning can also help teachers and research experts create
innovative content for convenient preaching and learning. Here are a few examples of AI smart
content creation:
• Information visualization
Where traditional teaching methods cannot offer visual elements except the lab tryouts, AI
smart content creation stimulates the real-life experience of visualized web-based study
environments. The technology helps with 2D-3D visualization, where students can perceive
information in more than one way.
• Digital lesson generation
Artificial Intelligence in education can help generate bit-size learning through low-storage
study materials and other lessons in digital format. This way, students and experts can leverage
the entire study material without taking much space in the system. Moreover, these materials
will be accessible from any device, so you don’t have to worry about remote learning.
For instance, Appinventiv developed an online learning platform, “Gurushala,” that educates
millions of students by providing free study material and other interactive forms of learning.
Gurushala is one true example of bringing positive change in the digital education generation
in today’s era.

• Frequent content updates

AI also allows users to create and update the information frequently to keep the lessons up-to-
date with time. The users also get notified every time new information is added, which helps
prepare for upcoming tasks.

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4. Adaptable Access:
With AI in the education market, the information can now be made available to the global
audience. A recent survey projects that more than 60% of education businesses rely on AI/ML-
based education app development supported by modern tools and features. Features like
multilingual support help translate information into various languages, making it convenient
for every native to teach and learn.
AI also plays a vital role in preaching to an audience with visual or hearing impairment. There
are AI-powered converter tools such as Presentation Translator that provide real-time subtitles
for virtual lectures.

5. Determining Classroom Vulnerabilities:

One of the significant AI technology benefits in education is maintaining a positive impact
with remote learning on our environmental footprint. However, many experts believe that AI
will soon replace the human touch in learning. Now, this might be the case for other industries
but not for the education sector. AI and education go hand-in-hand, complementing manual
and virtual teaching.
AI merely supports the experts by automating several tasks and improvising the teaching and
learning process for individuals.

6. Closing Skill Gap:

Upskilling students is a valuable solution for businesses that are still struggling with the
technology gap. AI and ML-powered software and application development solutions deliver
widely available and affordable opportunities for students to upskill.
This is not just limited to students; upskilling and training the existing business workforce can
boost morale and spark a company-wide commitment to improvement and innovation.
On top of that, Deep learning and Machine learning for education impact the L&D (Learning
and Development) arena by analysing how people acquire skills. As soon as the system adapts
to human ways of studying and learning, it automates the learning process accordingly.

7. Customized Data-Based Feedback:

Feedback is a crucial ingredient when it comes to designing learning experiences, whether in a
workplace or classroom. The fundamental difference between effective teaching and merely
giving out content is that effective teaching includes giving continuous feedback. It’s essential
that feedback comes from a trusted source; therefore, AI in education analyses and determines
work reports based on everyday data.
A data-based feedback system helps with student satisfaction, removes the bias factor from
learning, and helps understand where the skills are lacking. This feedback is tailored according
to every student and employee’s performance recorded in the system.

8. 24*7 Assistance with Conversational AI:

Chatbots are an increasingly familiar example of how AI in education consumes data to inform
itself and provide assistance accordingly. This benefits both business professionals and
teachers for user engagement in customized learning.
Conversational AI systems also deliver intelligent tutoring by closely observing the pattern of
content consumption and catering to their needs accordingly.
People worldwide are opting for distance learning and corporate training courses where they
don’t have to take a break from their classes, family, or job. Here AI chatbots can solve

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enrolment queries, deliver instant solutions, provide access to required study material and be
at assistance 24*7.

9. Secure and Decentralized Learning Systems:

The education industry is delivering rapid innovations with AI but is often held back by issues
like data protection, alterable data accessibility, outdated certification processes, etc. Amidst
all these challenges, AI-based decentralized solutions can bring a positive technical revolution
to the education sector.
For instance, Nova is a blockchain-based learning management system crafted by Appinventiv,
which is an answer to the genuinity and authentication issues prevalent in the education market.
This LMS is powered and backed up by AI and blockchain technology helping millions of
teachers and students with data and information protection solutions.

10. AI in Examinations:
AI software systems can be actively used in examinations and interviews to help detect
suspicious behaviour and alert the supervisor. The AI programs keep track of each individual
through web cameras, microphones, and web browsers and perform a keystroke analysis where
any movement alerts the system.
This AI technology benefit in education has proven to be one of the most effective online
examination solutions.
An AI-based software and application solution can be beneficial in more ways than one can
imagine. This is why EdTech start-ups and enterprises are attracted to AI technology solutions
that successfully address the wide range of users’ pain points. Therefore, If you are a part of
the professional education sector, it’s officially time to integrate AI solutions into your
education business.

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CHALLENGES OF ARTIFICIAL INTELLIGENCE IN EDUCATION
SECTOR

1.AI is Expensive: The custom development and maintenance of education AI systems can
be very expensive. This limits its use to well-funded institutions. However, there are a lot of
budget-friendly AI education solutions on the internet that you can easily adopt.

2.Data Loss and Information Security: Cybercrimes are on the rise and AI systems are no
exception.

3.Risk of Addiction: Technology can be addictive and this may affect the performance of
some students.

4.Lack of Human Connection: AI systems can have a negative effect on the psychological
well-being of students.

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CONCLUSION

AI is growing exponentially and its future in the education industry is bright. The impact of
artificial intelligence in education is immense. Not only does it increase efficiency in the
learning process but also continues to revolutionize education in ways we cannot imagine.

Despite the many concerns about AI systems not being able to connect emotionally with people
or replacing educators, we believe it will open a portal of opportunities in the industry.

Contrary to the popular belief, utilizing AI in education isn’t such a bad idea after all. Just like
any other element, AI, too, has pros and cons that come at a certain cost. It becomes difficult
to move forward and evolve if we are concentrating more on the drawbacks, rather than
benefiting from the advantages.

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