Financial watchdog urges NYC schools to withdraw $1.9 million proposal for AI reading tutor

Two students sit at a table working on a worksheet in a classroom.
The Education Department wants to use an AI tool from EPS Learning to provide students with personalized reading instruction. Comptroller Brad Lander wants the city to hold off. (Thalía Juárez for Chalkbeat)

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New York City’s top financial watchdog is demanding the Education Department cancel plans to expand the use of a reading tutor powered by artificial intelligence until the agency adopts clearer policies on the technology in schools.

On Tuesday, Comptroller Brad Lander called on the department to withdraw a $1.9 million contract with Maryland-based EPS Learning from consideration. The Panel for Educational Policy, which must sign off on department contracts, is scheduled to vote on the proposal Wednesday.

The company would provide students with automated one-on-one tutoring in reading, screening for risk of dyslexia, and other assessments of students’ reading abilities.

“The program ‘listens’ to students read aloud and provides real-time, personalized feedback and micro-interventions in an interactive learning environment,” according to city documents, which note the tool can be used in grades K-12 and is available in English and Spanish. “The program also generates reports that provide insights into students’ reading progress.”

Lander, who is also running for mayor, said in a statement that “before we spend millions on an AI program that could shape our kindergartners’ reading abilities, let’s make sure we’re doing this right.”

Citing student privacy among other concerns, Lander added that “while AI presents innovative opportunities to help teachers be more effective and improve student outcomes, the DOE’s plans to approve a contract for AI technology in our classrooms before studying its effects or developing any guidelines is premature.”

Several school systems already use the tool, often referred to as Amira, the AI-tutor’s digital avatar, including those in Chicago, Houston, and Los Angeles, according to the company. Some have reported positive experiences with it. The city’s proposal does not indicate how many schools would have access to EPS Learning’s AI reading tutor tool if the contract is approved.

Juanita Scarlett, a consultant with EPS Learning, said 46,000 students in New York City across 162 public schools have used the tool.

“Reading Assistant is a proven product that will empower teachers and improve literacy across the City,” Scarlett wrote in an email. “This AI is a closed, self-contained network. We would welcome an opportunity to show the product to the comptroller and answer any questions he may have.”

A spokesperson for the city’s Education Department did not respond to a request for comment. City records show the department spent at least $1.4 million with the company over the past two years.

Education Department officials have said artificial intelligence tools will “revolutionize” the school system, from teaching and learning to transportation. But they have yet to publicly offer a concrete strategy, nor have they spelled out clear guidelines for schools about how to use the technology in classrooms. The AI reading tutor represents one of the first efforts from city officials to burst into public view, though some schools have been experimenting on their own.

Greg Faulkner, who chairs the Panel for Educational Policy, said he is seeking additional information from the Education Department about whether there is evidence that the tool has produced literacy gains in schools that already use it. He also said he wants to hear more about privacy safeguards, an issue other panel members have raised.

“As of right now, we’re moving forward with it,” Faulkner said. “I’m waiting to get more information, and if the information shows that it should be taken off the agenda, then we will take it off the agenda to get more study.”

Some experts raised questions about the AI tool, including whether it can accurately interpret student voices in a classroom setting, whether it is aligned to other assessments schools already use, or if it might incorrectly suggest that students are at risk for dyslexia — potentially leading them to be pulled out of regular classroom instruction.

Plus, all elementary schools are in the middle of a massive reading curriculum overhaul, raising concerns about whether adding yet another program could be counterproductive.

“I would much prefer seeing a small little pilot and a validation of that pilot before spending this kind of money,” said Susan Neuman, a literacy expert at New York University who saw a demo of the tool a few years ago and served on an advisory group connected to a federal grant to the company. “It looked promising but there were lots of questions.”

Alex Zimmerman is a reporter for Chalkbeat New York, covering NYC public schools. Contact Alex at azimmerman@chalkbeat.org.


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