REG - Pearson PLC - Pearson: Generative AI Strategy Update

PearsonAnnouncement

09/05/2023 09:00

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RNS Number : 6746Y  Pearson PLC  09 May 2023

Pearson: Generative AI Strategy Update

 

London - 9th May 2023 - Pearson today updates on the generative AI
enhancements in products across its portfolio. These enhancements, when
combined with Pearson's unparalleled collection of high quality proprietary
intellectual property assets, further strengthen the Company's position as a
digital-first learning company focused on delivering an unmatched experience
for the consumer across their lifetime of learning.

 

 Andy Bird, Pearson's Chief Executive, said:

"AI has played an important role across our product portfolio for many years.
As generative AI develops, we expect it to create significant positive
opportunities for Pearson, due to our unrivalled depth of content and data.
Learners and educators place enormous trust in us so we have a responsibility
to be thoughtful and considered in how we use this technology, whilst
continuing to move at pace to enhance our products."

 

Pearson has adopted an AI strategy that will embed this technology across key
products throughout the portfolio in a way that enhances the teaching and
learning experience. With several projects well underway, Pearson is actively
focused on the significant opportunities across the company, especially those
using its trusted, proprietary, learning content.  The company has been
working to embed generative AI across a number of key products:

 

Workforce Skills uses large language models to develop proprietary predictive
algorithms which assess trends in demand for skills and occupations globally,
and recommend career and learning pathways for consumers, enterprises and
governments.

 

In Mastering and MyLab, generative AI tools specifically designed to support
higher education faculty are under development for Fall Back-to-School.
Additional student features are under development that use Pearson proprietary
content to answer questions and guide users through their problem areas. These
personalised features will operate in a secure environment, so users can trust
that their question attempts are not shared, and data stays free from the
noise and corruption of web based AI models.

 

In Pearson+, users will have access to a generative AI tool that automatically
summarises the content of Channels videos in simple bullet points and auto
generates quizzes and practice problems in the specific areas where they need
more help and practice. The addition of these features is part of the ongoing
strategy to build a broader base of Pearson+ users beyond higher education.

 

In English Language Learning, Pearson has developed AI based open response
assessments. These give real time feedback on how to improve in writing and
speaking based on the proprietary Global Scale of English. Additionally, a
conversation AI tutor is in development to help with anytime, anywhere
speaking practice.

 

Pearson has a unique range of assets, supporting a diverse business model,
with expertise in assessments and qualifications, language learning, workforce
skills, virtual learning and higher education. Businesses outside of higher
education represent the majority of profits (80%).

 

On 28(th) April we reported a strong Q1 performance, with underlying sales
growing 6%, underpinned by each division growing in line with or ahead of our
expectations. Pearson+ continues to show strong performance of paid
subscriptions this Spring semester, growing threefold versus Spring 2022. We
remain on track to achieve our 2023 guidance and are confident in our ability
to meet our financial expectations for the medium term. Our intention is to
commence a buyback to repurchase £300m of shares in the second half of 2023.

 

We will hold a briefing call at 12.00pm (BST) today with CEO, Andy Bird, Tom
Ap Simon, President of Higher Education and Virtual Schools, Giovanni
Giovannelli, President of English Language Learning and Mike Howells,
President of Workforce Skills.

 

Conference Call:

 

Participants may call the following numbers, 10 - 15 minutes before conference
start.

United Kingdom:  +44 (0) 207 107 0613

United States: +1 (1) 631 570 56 13

ID Number: 42653186

 

Other international numbers available here
(https://services3.choruscall.ch/NUMBERS/Attended_Dial_In_Numbers.pdf) .

 

Webcast link:
https://www.investis-live.com/pearson/64527598900ed614001919c9/idda
(https://www.investis-live.com/pearson/64527598900ed614001919c9/idda)

 

Contacts

 Investor Relations  Jo Russell          +44 (0) 7785 451 266

                     James Caddy         +44 (0) 7825 948 218

                     Gemma Terry         +44 (0) 7841 363 216

                     Brennan Matthews    +1 (332) 238-8785

 Teneo               Charles Armitstead   +44 (0) 7703 330 269

Notes

Forward looking statements: Except for the historical information contained
herein, the matters discussed in this statement include forward-looking
statements. In particular, all statements that express forecasts, expectations
and projections with respect to future matters, including trends in results of
operations, margins, growth rates, overall market trends, the impact of
interest or exchange rates, the availability of financing, anticipated cost
savings and synergies and the execution of Pearson's strategy, are
forward-looking statements. By their nature, forward-looking statements
involve risks and uncertainties because they relate to events and depend on
circumstances that will occur in future. They are based on numerous
assumptions regarding Pearson's present and future business strategies and the
environment in which it will operate in the future. There are a number of
factors which could cause actual results and developments to differ materially
from those expressed or implied by these forward-looking statements, including
a number of factors outside Pearson's control. These include international,
national and local conditions, as well as competition. They also include other
risks detailed from time to time in Pearson's publicly-filed documents and you
are advised to read, in particular, the risk factors set out in Pearson's
latest annual report and accounts, which can be found on its website
(www.pearsonplc.com). Any forward-looking statements speak only as of the date
they are made, and Pearson gives no undertaking to update forward-looking
statements to reflect any changes in its expectations with regard thereto or
any changes to events, conditions or circumstances on which any such statement
is based. Readers are cautioned not to place undue reliance on such
forward-looking statements.

 

 

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