Acceleration in AI, Economic Impact, Vendor Consolidation
London (UK), March 2024 - Fosway Group, one of Europe's foremost HR industry analysts, has released its new 2024 9-Grid™ for Learning Systems. The research shows that, while the market is negatively affected by a challenging economic climate, artificial intelligence (AI) and skills are still accelerating drivers for corporates and vendors alike.
Revealing the market and solution trends in the learning systems market, the 9-Grid™ report shows that whilst skills and learning experience are still key topics, AI and its potential to disrupt the learning systems market, has become the dominating topic of conversation. But across the learning industry, AI is seen as both an opportunity and a threat. Recent Fosway research shows that whilst corporate organisations see a lot of potential, in general, they are not ready to fully adopt AI in key areas. But learning system providers are already integrating AI into their solutions.
The 2024 Fosway 9-Grid™ for Learning Systems incorporates both Learning System Suites and Specialists. Suites are platforms that support a broad range of traditional and next generation learning approaches. Specialists focus on specific areas of capability with a disruptive high-impact agenda.
Another interesting trend this year focuses on the continued rise of Learning Experience (LX) as a buyer need (now heavily enabled by AI). However, there has also been a relative demise of LXP as a separate buying category - with a number of mid-tier Suite solutions positioning themselves as Suites in the mid-market, whilst also opportunistically winning as LX bolt-ons in the large enterprise market.
This year's 9-Grid™ sees the addition of several new vendors including CYPHER Learning and ExpertusONE, both US-based learning suites. Creative services giant Adobe also makes the 9-Grid™ in this cycle, with Adobe Learning Manager (formerly known as Captivate Prime). Another interesting addition on the 9-Grid™ is Drillster, illustrating the increasing corporate interest in the benefits of adaptive learning, potentially, the ultimate in personalisation.
Fiona Leteney, Senior Analyst at Fosway Group, commented, "Economic uncertainties have shaped the market this year. We can expect to see more consolidation in the market, as learning and HR vendors review their go-to-market priorities and seek to differentiate themselves from the competition. Acquisitions have meant a reduction in choice at the large enterprise level, but mid-market vendors have been eager to step up along with HCM vendor solutions and some specialists."
David Wilson, CEO of Fosway Group, continues, "The learning systems market remains highly competitive and will always look to innovate. Our research shows that beyond the more predictable trends, such as the continued conversational domination of AI, the level of innovation continues to accelerate rapidly - although there is clearly plenty of work to do where cohort-based programs are concerned. With continued prioritisation on learning and skills from an HCM perspective, as well as accelerating AI disruption, it looks to be a busy 2024 for the European market and beyond."
Fosway's CEO, David Wilson, and senior analyst, Fiona Leteney, will take questions on the research in a live online “Ask the Analyst” session, 20 March 2024 at 15.00.