McGraw Hill (MH) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Executive insights and industry context

• New CEO brings 25 years of big tech and AI leadership, emphasizing the convergence of technology and pedagogy to enable individualized education at scale.

• Data and analytics are transforming education, with a focus on outcomes, simplification of tools, and personalization for students.

• Literacy rates are in crisis, with 87% of states regressing over the past decade, highlighting the need for evidence-based teaching methods.

• AI's integration in education follows historical tech adoption cycles, requiring careful human-centered implementation and rigorous validation.

• The company leverages vast proprietary content and learning data to drive precision education and personalized learning journeys.

AI, technology, and product innovation

• AI tools like Sharpen and ALEKS Adventure are enhancing engagement and outcomes, with significant improvements in student performance and classroom gamification.

• Closed-loop systems allow professors to monitor student progress and tailor interventions, supporting both student and educator needs.

• AI is seen as an accelerator for content creation, accuracy, and tool development, with rapid adoption among software developers.

• The company is releasing new curricula in response to emerging fields and market needs, such as K-12 AI and updated medical nutrition content.

• Human learning is positioned as superior to AI models, with ongoing investment in teacher and student-centered approaches.

Market opportunities and competitive landscape

• K-12 total addressable market (TAM) is expanding, driven by increased focus on literacy and science, with California and Texas as key battlegrounds.

• Literacy products account for 40% of K-12 revenue, with new offerings like Soar! gaining traction in major districts.

• The competitive landscape is intensifying, especially in California math, with a surge in new entrants and procurement complexity.

• Open educational resources, such as Texas' Bluebonnet, are being trialed, but quality and accessibility remain differentiators for proprietary offerings.

• Strategic partnerships, like the integration with Renaissance, support an open data model and enhance assessment capabilities.