LAUSD’s $6M AI Chatbot Faces Uncertainty

LAUSD’s $6 million AI chatbot, "Ed" faces an uncertain future following turmoil at AllHere Education, the edtech firm hired to build the tool.

The AI-powered chatbot, launched on March 20, 2024, was envisioned as a first-of-its-kind AI tool designed to provide personalized resources for students, supplement classroom instruction, and help families navigate the school system.

Here’s what we know:

• AllHere, an edtech startup focused on family communication, furloughed the majority of its employees on June 14th citing financial difficulties and the CEO has left her position.

• LAUSD confirmed that AllHere is up for sale, with several educational technology companies interested in acquiring it.

• A former high-ranking AllHere executive reported that the company was struggling to fulfill its contract with LAUSD even before the recent developments.

• LAUSD has already paid AllHere more than $2 million for the project after the district approved a $6.2 million contract with AllHere in June 2023 for a two-year agreement, with options for three one-year renewals.

• AllHere had previously raised over $12 million in funding and was recently named one of the world's top Ed Tech companies by TIME.

LAUSD's investment in integrating GenAI into its school community demonstrates both the potential and the challenges of adopting emerging technologies. While the project faces hurdles, it can offer valuable insights for future AI implementation in schools.

Check out The74's piece on this here.