Will AI Help Revive the “Stale” OPM Market?
Will AI Help Revive the “Stale” OPM Market?
Publish Date: 2026-06-01 03:01:00
Source Domain: www.insidehighered.com
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AI Adoption and Skepticism: Online program management (OPM) companies like Coursera and 2U have integrated AI to enhance support but are uncertain if this will revitalize the stagnant OPM market. Experts believe AI will complement rather than revolutionize the market, mainly improving support and instructional design.
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Market Decline and Brand Problems: The OPM market is in decline, with declining new partnerships and reputational issues leading to lawsuits and regulatory scrutiny. This has prompted colleges to develop their own online learning systems rather than relying on OPMs.
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Private Equity Involvement: To recover from financial distress, many OPMs, including Wiley and Pearson, have been sold to private equity firms. However, these firms do not expect a substantial return from AI-enabled products, highlighting the market’s stagnation despite private equity investments.
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Future Growth Potential: There is potential growth predicted for the OPM market primarily driven by AI and machine learning certifications, with projections suggesting these might surpass traditional M.B.A. programs in revenue. However, this relies on overcoming competitive and marketing challenges.
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Competitive Challenges and AI Utilization: The increased adoption of AI across the online education sector is expected to raise competition for OPMs. The challenge lies in leveraging AI not just for cost efficiency but to genuinely enhance student support and outcomes. Additionally, more universities are opting to provide these services independently due to lower costs.
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Shift Towards Fee-for-Service Model: There is a growing trend for colleges to purchase OPM services on a pay-per-service basis rather than comprehensive service bundles. This has changed the business model, and OPMs need to incorporate AI to differentiate their services to maintain relevance.
