A Study of AI’s Impact on Education: Evaluating the Economic Sustainability and Demand for Traditional Tutoring Services In the US

With the rapid development of artificial intelligence, the tutoring industry faces immense disruption, some of which might be impossible to rebound from. Students in the United States increasingly turn to ChatGPT and Khanmigo for support, reducing the interest in traditional tutoring traditions. While some previous research leans on student engagement and learning outcomes, how AI impacts the economic sustainability and demand for tutoring services in the US has not been examined. This paper explores how this disruption affects the sustainability and demand for tutoring services. Additionally, it displays the threat of AI to services that flourished in the past, while also describing the adaptability of tutoring an AI to create a more usable AI model. The study used a mixed-method approach, combining case studies and surveys. A literature review was also used in the paper to establish the theoretical context on which the research is built. With these approaches, the paper explores different factors such as personalization, adaptability, pricing, and trust, which are necessary to shift tutoring to AI. It debates the future of education by describing how AI can reshape and discuss how it can disrupt different long-lasting business models. The paper includes insights into market and student behavior, allowing it to educate others on how the education system is being reformed. The findings of the paper suggest that while AI presents obstacles for traditional tutoring, it also promotes innovations for hybrid approaches. The long-term sustainability of tutoring services may depend on their ability to effectively adapt to AI.