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Pearson hits targets, plans to expand use of generative AI study tools

Pearson PLC (LSE:PSON) kept up a consistent level of growth in the final months of last year and said it will expand its use of generative artificial intelligence (AI) after encouraging results in trials.

Underlying sales growth remained at 5% for the full year, as it was for the third-quarter update, the education group said in year-end statement today, with guidance unchanged for adjusted operating profit of £570-575 million.

With a cash performance over the year described as “strong”, net debt finished the year below £0.8 billion, from £0.9 billion at the half-year stage and £0.6 billion the previous year.

New chief executive Omar Abbosh, a former Microsoft man who took over earlier this month, said he will provide a business and strategic update at the time of the group’s interim results in July.

For now, Pearson said it is “encouraged by how students are engaging with our generative AI study tools” and plans to expand the current test to “many more” of its MyLab and Mastering titles by the start of the new academic year. .

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