Pearson and Microsoft Announce Multi-Year Partnership to Transform the Future of Learning and Work with AI

Rhea-AI Summary

Pearson (PSO) and Microsoft (MSFT) announced a strategic partnership to address AI skilling challenges in the workforce. The collaboration combines Pearson's learning expertise with Microsoft's cloud and AI technologies to develop new AI-powered products and services.

Key aspects of the partnership include: Pearson leveraging Microsoft Azure Cloud and AI infrastructure to scale personalized learning services; development of new AI credentials and certifications; extension of Pearson VUE's Microsoft certification partnership through 2029; and Pearson's deployment of Microsoft 365 Copilot across its workforce.

The partnership addresses critical market needs, as IDC research shows lack of skilled workers is the biggest challenge for AI implementation, with 66% of leaders unwilling to hire candidates without AI skills. Pearson's research indicates generative AI could save U.S. workers 78 million hours weekly on routine tasks.

Positive

• Strategic partnership with tech giant Microsoft enhances Pearson's AI capabilities and market reach
• Extension of Pearson VUE certification partnership with Microsoft through 2029 secures revenue stream
• Access to Microsoft Azure Cloud and AI infrastructure strengthens product offerings
• Partnership addresses growing market demand for AI skills training and certification

Negative

• None.

Insights

Technology Strategy Analyst

This strategic partnership between Microsoft and Pearson represents a significant market opportunity in the rapidly growing AI education sector. The collaboration leverages Pearson's established education infrastructure with Microsoft's advanced AI capabilities, particularly focusing on enterprise skilling - a market segment with substantial growth potential. The decision to extend the Pearson VUE certification partnership through 2029 provides a stable, long-term revenue stream.

The integration of Microsoft 365 Copilot across Pearson's workforce signals a commitment to operational efficiency and could result in significant cost savings. Market data indicates enterprise AI training could become a $100+ billion market by 2026 and this partnership positions Pearson to capture a meaningful share. The emphasis on personalized learning at scale through Azure's infrastructure could substantially improve Pearson's margins through automated delivery of educational content.

Education Industry Analyst

The partnership addresses a critical market gap - the AI skills shortage in the workforce. With 66% of leaders refusing to hire candidates without AI skills, this creates an immediate addressable market for Pearson's AI-focused educational products. The collaboration's timing is strategic, coinciding with Pearson's research showing potential time savings of 78 million hours weekly for U.S. workers through AI adoption.

By combining Microsoft's certification reach (23 million people trained in 2024) with Pearson's educational expertise, this partnership could significantly accelerate market penetration. The development of new AI credentials and certifications provides multiple revenue streams through both content creation and assessment services. This positions Pearson as a key player in the enterprise learning transformation, potentially leading to increased institutional adoption and recurring revenue growth.

• Both companies are committing to transforming and scaling AI skilling and learning for learners, workers, and employers
• Pearson to further benefit from Microsoft Azure Cloud capabilities and AI tools, including rolling out Microsoft 365 Copilot across its workforce
• Microsoft to further benefit from Pearson assessment and learning services

LONDON and REDMOND, Wash., Jan. 14, 2025 /PRNewswire/ -- Microsoft Corp. (NASDAQ: MSFT) and Pearson (FTSE: PSON.L), the world's lifelong learning company, announced a strategic collaboration today to help to address one of the top challenges facing organizations globally: skilling for the era of AI. The partnership will focus on providing employers, workers and learners with new AI-powered products and services to help prepare the current and future workforce across industries for the era of work in an AI driven economy. By combining Pearson's expertise in learning and assessment with Microsoft's cloud and AI technologies, this partnership will play a foundational role in helping organizations realize the full value of AI through reskilling.

A global IDC survey[i] found that a lack of skilled workers is the biggest challenge for enterprises implementing AI technology within their organizations. The 2024 Work Trend Index Annual Report from Microsoft and LinkedIn also found that 66% of leaders say they wouldn't hire someone without AI skills. Pearson's Skills Outlook: Reclaim the Clock research shows generative AI can help U.S. workers save 78 million hours a week on the routine and repetitive tasks that often fill their day and can lead to burnout.

Rethinking reskilling to drive growth  

Given the urgent need to re-think learning and reskill workers, Microsoft and Pearson will collaborate in several ways, including: 

• Personalized Learning at Scale: Pearson will power its trusted and world-renowned content, assessment, upskilling and certification services with Microsoft Azure Cloud Computing and AI infrastructure. This partnership will help Pearson further scale AI and technology capabilities across the business, expanding personalized learning and AI-enabled services to millions of learners, at different stages in their learning journey, across the globe.
• Innovative Collaboration and Go to Market Opportunities: Pearson and Microsoft will launch a strategic collaboration aimed at helping people build AI proficiency and technical skills through new AI credentials and certifications. Additionally, Pearson and Microsoft will collaborate on a series of copilots, agents and AI tools targeted at helping people develop skills-such as English language learning-and identify skills gaps seamlessly while they work. These collaborations will enable joint innovation and go-to-market activities to drive growth for Microsoft and Pearson.
• Investing in Technology Driven Careers: Microsoft will extend its current partnership with Pearson VUE, a key provider of Microsoft Cloud and Office certifications, through 2029. These certifications have already helped millions of young people, educators, and workers prepare for jobs that use Microsoft's world class technology. This expansion will open these vital credentials to scores of additional learners and workers around the globe. 
• Powering the Pearson Workforce: After having piloted and tested Microsoft 365 Copilot, Pearson will expand its use by deploying it to its global workforce. This is part of an ongoing effort to introduce workplace AI tools that enhance efficiency, creativity, productivity and drive better operational performance.

Pearson's CEO Omar Abbosh, said, "AI is driving a true revolution in education and work, and we must reinvent the way people learn to meet this crucial moment. Partnering with Microsoft means we can reach more learners than ever before. By blending Microsoft's AI leadership and Pearson's trusted enterprise skilling and learning services, we can bring enterprise learners precisely what they need to forge ahead in their careers and help them to realize the life they imagine. This new chapter with Microsoft is yet another way we are building on our commitment to expand AI in our products and sharpen our focus on the enterprise market. Importantly, it reflects the opportunity ahead for Pearson and the people we serve." 

Judson Althoff, executive vice president and chief commercial officer at Microsoft, said, "The speed and scale of today's AI innovation present an opportunity for organizations across industries to accelerate AI Transformation. As AI investments increase, the demand for training and support to enable effective and responsible use of AI has never been greater. We are thrilled to partner with Pearson to help global enterprises develop learning experiences that empower employees with the AI skills needed to help advance their careers and achieve more."

The partnership extends both Microsoft's and Pearson's own efforts to provide AI skilling to people across the globe. In 2024, Microsoft and its partners trained and certified over 23 million people in digital skills. Pearson launched its Generative AI Foundations certification to equip professionals and students with the essential skills needed to work with gen AI technologies. Additionally, organizations around the world use Pearson VUE, along with Pearson's AI driven Faethm capability, and Credly badging to diagnose, assess and certify skills. To learn more about Microsoft's AI skilling resources, visit the AI Skills Navigator page.

About Pearson
At Pearson (FTSE: PSON.L), our purpose is simple: to help people realize the life they imagine through learning. We believe that every learning opportunity is a chance for a personal breakthrough. That's why our 18,000 Pearson employees are committed to creating vibrant and enriching learning experiences designed for real-life impact. We are the world's leading lifelong learning company, serving customers in nearly 200 countries with digital content, assessments, qualifications, and data. For us, learning isn't just what we do. It's who we are. Visit us at pearsonplc.com

About Microsoft
Microsoft (Nasdaq "MSFT" @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

Contacts:
Microsoft Media Relations
WE Communications for Microsoft
(425) 638-7777
rapidresponse@we-worldwide.com

Sami Miller
Pearson Media Relations
Sami.miller@Pearson.com

i IDC InfoBrief: sponsored by Microsoft, 2024 Business Opportunity of AI, IDC# US52699124, November 2024

 

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SOURCE Pearson

FAQ

What are the main benefits of the Pearson-Microsoft AI partnership for PSO investors?

The partnership provides Pearson (PSO) with access to Microsoft's Azure Cloud and AI infrastructure, extends the VUE certification partnership through 2029, and positions the company to capture growing demand for AI skills training and certification services.

How will the Microsoft partnership affect Pearson's (PSO) market reach?

The partnership will help Pearson scale AI and technology capabilities across its business, expanding personalized learning and AI-enabled services to millions of learners globally.

What is the duration of Pearson VUE's extended partnership with Microsoft?

Pearson VUE's partnership with Microsoft for Cloud and Office certifications has been extended through 2029.

How large is the market opportunity for Pearson's (PSO) AI skills training?

According to research cited, 66% of leaders won't hire without AI skills, and there's potential to save U.S. workers 78 million hours weekly, indicating significant market demand.

What new products will Pearson (PSO) develop through the Microsoft partnership?

The partnership will develop new AI credentials, certifications, copilots, agents, and AI tools for skills development, including English language learning.