Will AI Help Revive the ‘Stale’ OPM Market?
Online program management (OPM) companies like Coursera, iDesign, and 2U are integrating AI tools to improve instructor and student support, but experts doubt AI will drive significant market growth amid declining revenues and regulatory scrutiny. Legal challenges, state laws, and federal guidance have intensified pressure on OPMs, leading to fewer partnerships as universities increasingly build their own online systems or exit existing deals.
Online program management (OPM) firms are turning to artificial intelligence to revitalize their struggling sector, but industry analysts remain skeptical about AI’s ability to spark meaningful growth. Companies like Coursera, iDesign, and 2U have adopted AI-powered features for coaching, content creation, tutoring, and curriculum mapping, with 70% of OPMs now deploying such tools, according to an April 2026 analysis. However, Chris Gardiner, a senior analyst at Eduventures, argues AI will only offer incremental efficiency gains rather than transform the market’s core challenges. The OPM industry faces persistent reputational and financial hurdles despite AI adoption. Once seen as a way for universities to compete in online education, OPMs have faced criticism over predatory practices, including inflated program rankings and revenue-sharing models. Legal actions, such as a 2022 lawsuit against 2U by former University of Southern California students and a 2024 case targeting the University of Maryland Global Campus’s partnership with Coursera, highlight ongoing scrutiny. Federal guidance released in January 2025 warned colleges could lose federal financial aid access if OPM contractors provide misleading information to students. Regulatory pressure has accelerated as states like Minnesota and Ohio enacted OPM laws, while proposals in California, Florida, Massachusetts, and New Jersey signal broader crackdowns. Partnerships between universities and OPMs have plummeted from 141 in 2021 to just 73 in 2024, the lowest since 2016. Institutions are increasingly opting to develop their own online systems, leaving only those with limited alternatives to rely on OPMs. Financial distress has forced several OPMs into private equity hands. Wiley and Pearson sold their OPM divisions in 2023, while Keypath was acquired by private equity in 2024. 2U, one of the first OPMs launched in 2008, also faced financial strain, though its full status remains unclear from the truncated source. The shift reflects a broader industry contraction, with OPMs now dependent on private investment to sustain operations amid declining demand and heightened regulatory risks.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.