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Artificial Intelligence in Education: Why It Matters and the Tools Behind It

Author

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  • Lyudmil Naydenov

    (Department of Finance, University of Economics - Varna, Bulgaria)

Abstract

The paper presents a comparative analysis of public spending on education relative to GDP while examining the PISA test results in mathematics and science of EU students. It seeks to identify a clearly defined and universally valid correlation (applicable to every member state) between the two indicators, yet no such relationship is found. Examples from countries such as Bulgaria and Cyprus illustrate the need for more precise targeting of public funds and a closer alignment with student performance. In this context, the potential of AI-based software to enhance the relevance of the educational system is explored. The study provides a detailed analysis of the following AI tools: Personalized and Adaptive Learning Platforms (ALS), Intelligent Tutoring Systems (ITS), Automated Grading and Assessment Systems with AI, Educational Games, Simulations and Virtual Reality (VR), Chatbots, and Machine Learning (ML)/Educational Data Mining (EDM) tools. Examples of such software and their applications are presented, and the mechanisms by which these AI tools affect student outcomes are identified and summarized. It is concluded that while the realization of positive effects from using AI in the educational sphere is not automatic, the implementation of such software holds significant potential for linking expenditures with tangible benefits.

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Handle: RePEc:vrn:cfinrd:y:2025:i:1:p:182-191
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File URL: https://journal-fn.ue-varna.bg/index.php/fnj/article/view/19/18
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