Discover six key trends shaping the future of education via SXSW EDU 2025, including AI integration, belonging in classrooms, early childhood education, financial literacy, workforce readiness and the evolving role of government and philanthropy.

1. Artificial intelligence and tech integration

AI is not just about to impact education — it’s already here and here to stay (especially for students who are ahead of their teachers). From chatbots helping students with homework to learning platforms tailoring lessons to individualized needs, AI is transforming how students learn (particularly students with learning disabilities). With the rise of rapid technology comes ethical issues/concerns. How can we ensure AI benefits all students equally and equitably? How do we protect the privacy and safety of minors? 

Educators are dealing with these questions while acknowledging AI’s potential to democratize knowledge (to enhance accessibility by removing barriers to marginalized communities and groups) and provide personalized learning experiences. The challenge is not whether to adopt AI in education, but how to do so responsibly.

Challenge: AI moves and innovates rapidly while policymakers are about two years behind on creating policy. How do we address this lag while avoiding tech/AI’s potential harm to minors?

2. Shifting from DEI to “belonging”

Until recently, the conversation around diversity in education centered on equity and inclusion, ensuring that underrepresented students had access to similar opportunities as their classmates. There seems to be fear and hesitation towards the term DEI now, so the focus seems to be shifting towards creating a sense of “belonging” for all in the classroom. 

Studies show that students who feel seen and represented in the classroom perform better, but systemic racism and disparities persist across education. Black and Brown educators remain underrepresented in leadership roles (while overrepresented in low-paying roles in education), teacher advancement is difficult and STEM fields continue to struggle with gender and racial diversity imbalance. Initiatives aimed at changing the storytellers in the media and in classrooms are gaining traction, but the challenge is that more needs to be done to make sure education is inclusive — not just in policy, but also in the classroom.

3. Early childhood education

Research shows that the first five years of a child’s life are critical for cognitive and social development, but early childhood education (ECE) in the U.S. has largely been an afterthought. That seems to be changing for the better. Advocates argue that quality early learning is not just good for society. Investing in early education can break cycles of poverty, reduce incarceration rates and improve long-term health outcomes. But funding remains a major challenge. As philanthropic organizations and public-private partnerships step in, the hope is to elevate early childhood education from a niche issue to a national priority.

Challenge: How do we prove that investment into ECE works and what are the immediate returns on investment (ROI)? For high school and higher ed, ROI is easier to prove, so funders are more willing to invest in these stages.

Highlights:

• There is ongoing dialogue on early childhood education as a national priority, emphasizing brain development, family and community supports and teacher recognition.
• Integrating healthcare (and mental health) with education can address holistic child development and improve long-term outcomes.
• Investment in early learning is key to addressing poverty and long-term economic disparities.

4. Financial literacy and economic mobility

In the past, financial education and literacy in schools hasn’t had the attention it needs, but that’s changing (especially with AI). As student debt increases and economic inequality widens, teaching financial literacy is important. The way we talk about money matters, too. Research shows that financial stress is deeply tied to overall well-being and physical and mental health, but discussions about money often carry shame. AI-driven financial tools are emerging as game-changers, providing judgment-free guidance and counseling and access to financial education (including investing in the stock market) that was once reserved for the wealthy. If schools embed financial literacy into their curriculum, the next generation will be better equipped.

Highlights:

• Financial education must be embedded into curriculum, moving beyond math/accounting to include emotional and behavioral aspects of money management.
• AI can help remove barriers by providing personalized, judgment-free guidance.
• Financial stress significantly impacts well-being, making financial literacy a core component of educational success

Challenge: Learning what age/grade to introduce financial concepts. 

5. The importance of higher ed and workforce readiness

As tuition and student loans rise, while AI and other technologies reshape the job market, there’s growing recognition that schools must prepare students for an unpredictable future — and maybe the four-year college degreee isn’t the answer for all students,

Specialized skills may be more important and practical than a university degree. Trade schools and apprenticeships are becoming more mainstream and challenges the idea that higher ed is necessary for all. 

Highlights:

• Traditional education models, including the four-year degree, are being questioned as new career pathways arise.
• Schools need to prepare students for an unpredictable job market, emphasizing specialization, practical skills, etc. 
• Partnerships across industries (from tech, healthcare and nonprofits/community-based organizations) are crucial to modernizing education and addressing funding challenges.

6. The role of government and philanthropy in education

Public education relies on local, state and federal government funding, but with funding cuts and budget constraints, schools and nonprofits must innovate. Philanthropy and private sector partnerships are stepping in to fill the gaps, but some questions that were asked at the SXSW EDU conference include: Who should control the direction of education? Should schools operate more like businesses? How can they ensure that financial pressures don’t lead to mission drift? What are new streams of revenue to explore? 

Nonprofits and educators are reassessing business models to remain sustainable, but they should not compromise on their missions and values.

Highlights:

• The shifting political and funding landscape requires innovation (and new revenue streams that don’t just rely on government support).
• Storytelling and branding are becoming essential for securing funding and demonstrating impact.

NOTE: Reading Hyesun Ahn’s column on her insights from the SXSW EDU conference.

Hyesun Ahn is a former Fulbright Scholar to Austria and works as the Marketing & Communications Manager at Children’s Institute.