Differentiating through AI is problematic

Published in March 2025, the Fosway 9-Grid™ for Digital Learning looks at the market for Suites and Specialist content providers in the digital learning space. Here, Fosway analysts ask how, as AI adoption becomes widespread, you can make your solution can stand out.

The need to adopt and integrate AI has become pressing and universal. But evidence to date suggests that sustainable differentiation might now be harder to achieve. What is revolutionary on the inside can look very familiar from the outside. AI foundation models seem to be tending towards similar capabilities, however remarkable the productivity gains. Model choice itself also limits differentiation, and the models used by vendors are equally available to all.

As a consequence, the functionality being introduced, whether for learning experience, administration or analytics, can look very similar. Putting too many eggs into one AI basket is risky. To truly differentiate, vendors need USPs that are hard to replicate beyond these technologies. At this stage of solution evolution, intellectual property ownership, data capability and unique services are more reliable defences against sameness. Access to exclusive, high-quality expertise (not only in content) is also a highly valuable ingredient in differentiating solutions.

Invasion of the AI assistants

One clear example of the differentiation challenge is the prevalence of some form of AI assistant (or copilot, buddy, guide, coach…) in solutions and platforms. These tools feel omnipresent in our vendor briefings. This is not to denigrate their value – they are increasing relevance, personalisation, ease of use, and depth of learning experiences.

They are empowering admin users to optimise and target learning at a scale which was unaffordable in the past. But perhaps the greatest value of AI assistants is the use of conversational language interfaces, resulting in more accurate recommendations and better results faster.

The desire to learn together gains momentum

Amongst all this talk of AI, the desire to actually learn together (with other people) remains, arguably, valued more highly. The need for learning solutions for high-value or large-scale transformation programmes is enduring. The best solutions bring cohorts to learn and work together over time. And maybe unsurprisingly, live events are still an important part of the desired blend, as well as virtual and hybrid approaches, led by experts that can interact in real time with their audience. In-group facilitation and collaboration is another core capability. Much of this is missing from corporate learning solutions, and capability to support such programmes is underdeveloped.

The real value lies in experience design, facilitation and choreography over time, not in the technology itself. Few vendors can marry these capabilities into one service. Learning system vendors have often claimed to do so, but in reality, the specialists remain some distance ahead. We expect Gen AI and AI agents to play a role here too, allowing providers to scale solutions more cost effectively with personal feedback at a scale not possible before.

This is an excerpt from the Fosway 9-Grid™ for Digital Learning. Get the full insight and discover all the latest market and solution trends by reading the whole report here.

What should you do next?

• Sign up to be part of Digital Learning Realities 2025 – ignore the hype and be part of the reality of modern digital learning. Share your experiences in this year’s research cycle and get first look at the results.
• How will AI affect the future of digital learning? Take part in Fosway’s strategic AI project for 2025: ‘AI in Learning’.

Other recommended reading

• Browse everything related to AI in the Fosway Group Knowledge Centre. Find out more here.
• The 2025 Fosway 9-Grid^TM for Learning Systems – full report. Recently released: the latest look at the market and solution trends in learning platforms – get the full analysis today.
• How will adaptive learning adjust to the AI revolution? Will adaptive learning or AI assistants will win out – or will they co-exist?

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