Key points:
The federal government’s latest move to dismantle diversity, equity, and inclusion (DEI) in education is not just an ideological shift–it’s a direct threat to decades of progress in making education more accessible and equitable.
The Department of Education ordered schools and universities to eliminate DEI programs within two weeks of its announcement or risk losing federal funding. Already, over $2.6 million in DEI-related contracts have been canceled.
This policy shift doesn’t just impact educators and students–it puts the entire edtech sector at a crossroads. Many companies will face tough decisions: Comply with new restrictions and risk erasing hard-won progress in equity, or push forward with technology that serves all students, especially those historically marginalized.
The compliance temptation
In response to federal pressure, some edtech companies may take a risk-averse, compliance-driven approach by:
- Scrubbing DEI language from their products and services
- Rebranding DEI initiatives under vague terms like “inclusive excellence”
- Shifting market strategies away from equity-focused solutions
But this reaction ignores a fundamental reality: Educational inequity is not a political issue–it’s a systemic challenge that affects millions of students. In the U.S., Black and Hispanic students remain twice as likely as white students to attend schools with inexperienced teachers and outdated learning materials. Students from low-income families still lag in digital access, with 35 percent lacking reliable home internet.
A more courageous path for edtech
Instead of retreating, edtech companies can take a leadership role in ensuring that technology expands opportunity rather than reinforces exclusion. Here’s how:
- Use data to address learning gaps
- Develop AI-powered tools that help schools pinpoint disparities in student outcomes
- Partner with researchers to evaluate what works in improving equity–and build those insights into their platforms
- Eliminate bias in AI and algorithms
- Ensure that facial recognition, grading algorithms, and adaptive learning tools don’t replicate systemic biases
- Work with diverse student populations to develop more inclusive learning models
- Support teachers of color
- Create online professional development resources tailored to the needs of educators from underrepresented backgrounds
- Use edtech to improve teacher hiring practices so that faculty demographics better reflect student populations
- Expand access to underserved communities
- Invest in mobile-first learning platforms for students without reliable broadband
- Design culturally responsive teaching tools that empower educators to make learning more inclusive
The competitive advantage of equity
This is not just about ethics–it’s also smart business. The edtech market is projected to reach $605 billion by 2027, and companies that prioritize inclusivity will tap into a rapidly diversifying student population. Those that take the lead in equity-focused innovation will shape the future of education while securing a lasting competitive advantage. Moreover, identity and culturally responsive learning tools are increasingly important and in demand, with educators and school leaders seeking out resources to address widening equity gaps. By investing in educational opportunity, edtech companies can differentiate themselves in the market while effectively supporting diverse learner needs, ultimately driving better educational outcomes and expanding their customer base. The companies that embrace this critical moment will surely emerge as industry leaders.
The choice is clear: Edtech companies can either passively comply with restrictive federal directives, or they can stand by their mission–to make learning better for everyone. The real leaders in this space won’t just react to policy shifts; they’ll set the course for a more just and effective education system. Now is the time for bold and decisive leadership and action. This means doubling down on equity-driven solutions, strategically collaborating with educators and local advocacy groups, and using every tool available–data, technology, and research–to push back against efforts to stymie progress.
