For years, school districts have relied on software-as-a-service (SaaS) solutions for everything from learning management systems (LMS) to assessment tools, student information systems, communication platforms, and assessment tools. However, the rapid evolution of AI—especially with newer, more powerful models—may signal a shift in how schools approach utilizing EdTech and leveraging teacher expertise and funds to create their own in-house apps to meet their needs.
The emergence of no-code AI development app platforms has revolutionized application creation (for a small minority of the population as of 2025 – it is still not being employed on a widespread basis…yet). It enables teachers and school leaders to build sophisticated tools without traditional programming skills. Platforms like Glide and Bubble offer intuitive, drag-and-drop interfaces, allowing users to design custom applications tailored to their specific needs. Replit’s AI-powered tool, Replit Agent, enables users to build applications through natural language prompts, automating the development process and making it accessible to those without coding expertise. As tools like OpenAI’s Operator become more mainstream, this technology will become even more accessible to educators seeking to develop their own applications.
Dr. Peck (EdTechPeck) on X/Twitter, outlines a practical example in this post and points out several possibilities with this in early 2025. In the video he posts, this illustrates just the beginning of the possibilities of this taking shape. It will only continue to be more possible (and better) as we move forward into the future. By the end of 2025, this will be even easier and more accessible than it is now!
The Infrastructure Challenge: IT’s Role in an AI-Powered Future
One of the most significant factors in this transition will be the role of IT departments. While AI built tools are becoming more user-friendly (from creation to maintaining them), requiring minimal coding expertise, the underlying infrastructure must be robust enough to support them. Districts will need IT teams capable of managing AI-powered applications, ensuring data security for all, and integrating these systems with existing platforms.
In the past, reliance on third-party vendors meant outsourcing much of this work. But as AI models become more accessible and customizable, schools may find that keeping development in-house gives them greater control over features, security, and costs.
Collaboration is Key: IT and EdTech Leaders Partnering with Educators
For in-house AI applications to be truly effective, IT and EdTech leaders cannot work in isolation. Instead, they must collaborate closely with teachers, school leaders, district administrators, and curriculum experts to ensure these tools align with instructional goals and district priorities. Teachers bring firsthand classroom experience, offering insight into how AI can enhance learning, streamline assessment, or support differentiation. District leaders provide the strategic vision, ensuring that new applications align with long-term educational goals and compliance requirements. Meanwhile, curriculum experts in the district help ensure that AI-powered tools meet pedagogical standards and reinforce best practices in teaching and learning. This cross-functional collaboration is essential—not only for designing applications that are user-friendly and impactful but also for ensuring widespread adoption across the district. Soon, teachers may be able to develop their own AI-developed applications to meet their own instructional needs as well as their student’s needs.
Cost Considerations: Is AI the Budget-Friendly Alternative?
School funding is always a concern, with budget cuts often leading to difficult decisions about which EdTech subscriptions to keep or cut. Currently, districts pay substantial annual fees for SaaS-based edtech tools—often with limited customization options. In-house-built applications using AI change that equation.
With the right strategy, school districts could develop in-house AI applications tailored to their specific needs. For example, an AI-driven wrapper for all teacher and district tasks, an automated grading assistant, digital mini whiteboards, or even a custom-built LMS could be designed with district priorities in mind, eliminating the need for costly third-party solutions.
Open-source AI models and low-code/no-code development platforms make this an increasingly viable option. Instead of paying recurring SaaS fees, districts could invest in one-time development costs and ongoing maintenance, potentially leading to significant long-term savings. Ultimately, the on-going cost would be access to AI to build these applications. Yet, when open-source AI models are used, this could be almost a net-zero cost.
The Future of SaaS in Education: An Uncertain Road Ahead
As AI capabilities grow, my prediction is that we will see the decline of traditional edtech SaaS models. It’s possible, and I believe will be inevitable in the next 2-5 years. While some schools will always prefer plug-and-play solutions, others will recognize the financial and functional benefits of in-house built applications using AI.
Edtech companies will need to adapt. Instead of offering expensive subscriptions, they may pivot to AI-powered consulting, training, and infrastructure support. We could see more modular software solutions, where districts purchase AI models and train them internally rather than relying on pre-packaged services.
A New Era for K-20 Technology: It’s Coming
Over the next few years, we may witness a significant transformation in how schools leverage technology. The rise of in-house-built AI applications doesn’t just promise cost savings—it also offers more flexibility, control, and innovation.
For districts willing to invest in their IT infrastructure and embrace AI-driven development, the future may be less about subscriptions and more about self-sufficiency.
Could this be the end of SaaS in edtech? Not quite yet—but the writing may be on the wall as we progress into 2025 and beyond.
Navigating the Present and Future of Education 