AI and a new role for education in the knowledge economy

In the late 1990s there was an upsurge of interest in the education community around research into knowledge development. Perhaps stimulated by political preoccupations around the emergence of the 'knowledge society' discussions focused on how knowledge was developed and how such knowledge development could be stimulated and supported. Although recently innovation has tended to be seen as dependent on individual invention, in the 19902 research it was more generally seen as a social process.
Nonaka & Takeuchi (1995) developed the SECI model which describes four knowledge creation processes within organizations, involving the interplay of tacit and explicit knowledge. SECI includes four knowledge creation processes that can occur at the individual, group, or organizational level (ASCN, 2023).
Socialization is the process of spreading tacit knowledge, which often occurs through shared experience, such as spending time together, working in the same environment, and informal social meetings. An example is a traditional apprenticeship, where apprentices learn the tacit knowledge needed in their craft through hands-on experience, rather than from written manuals.
Externalization is the process of articulating tacit knowledge into explicit knowledge. When tacit knowledge is made explicit, knowledge can be shared by others, and it becomes the basis of new knowledge. Examples include employees making improvements on the manufacturing process by articulating tacit knowledge accumulated through experience on the job.
Combination is the process of converting explicit knowledge into more complex and systematic sets of explicit knowledge. Explicit knowledge is collected from inside or outside the organization and then combined, edited, or processed to form new knowledge. The new explicit knowledge is then available to other members of the organization as well as external audiences.
Internalization is the process of converting explicit knowledge into tacit knowledge. For example, in training programs new employees can read about their jobs and the organization, and incorporate these ideas, through reflection, into their tacit knowledge base. When knowledge is internalized it becomes part of an individuals' tacit knowledge base in the form of shared mental models or technical knowhow. Tacit knowledge accumulated at the individual level can set off a new spiral of knowledge creation when it is shared with others through socialization.
At the same time there was much interest in Activity Theory originally based on the work of by Alexei Leont'ev and Lev Vygotsky and which actions only make sense in a social context of a shared work activity. In the late 1990s Activity Theory was taken up in Scandinavian research. especially by Yrjo Engestrom. Engeström "proposed a scheme of activity different from that by Leont'ev; it contains three interacting entities—the individual, the object and the community. The object of activity theory is to understand the unity of consciousness and activity...Activity theorists argue that consciousness is not a set of discrete disembodied cognitive acts (decision making, classification, remembering), and certainly it is not the brain; rather, consciousness is located in everyday practice: you are what you do."[18] Nardi (p. 5) also argued that "activity theory proposes a strong notion of mediation—all human experience is shaped by the tools and sign systems we use.
One of the reasons that Activity Theory became popular in relation to to technology enhanced learning was the attention paid to Tools or tool mediation. These are the artifacts (or concepts) used by actors in the system (both material and abstract artifacts). Tools influence actor-structure interactions, they change with accumulating experience. In addition to physical shape, the knowledge also evolves. Tools are influenced by culture, and their use is a way for the accumulation and transmission of social knowledge. Tools influence both the agents and the structure.
Other research focused on the development of Communities of Practice - a social theory developed by Etienne Wenger Learning is seen as developing within a group who share a common domain of interest CoPs provide a framework for understanding how members learn from each other through mutual engagement and joint activities, fostering shared knowledge, identity, and mutual support. The concept supports professional development and knowledge sharing.
And of course there were more theories and ideas. the point here is to suggest that the increasing use of AI requires a reexamination of these ideas in an effort to understand the nature of different forms of knowledge and how knowledge supported by AI emerges and can be shared. This is a focus of a recent interview by the Spanish Caixa Foundation with Ilkka Tuomi, described by Wikipedia as a Finnish computer scientist, noted for writings on the subject of the Internet.
Artificial intelligence and cognitive technologies help strengthen the idea that the role of education is not only to transmit knowledge, but centrally to develop human agency – our ability to make decisions and act with purpose. We need to rethink education and consider how to use AI to enhance our capacity to be active participants in the real world. This also means questioning how these technologies are reshaping social structures such as the economy and the job market.
Compulsory education used to be aligned with social goals and was overseen by policymakers. Culture and the political process determined what should be included in the curriculum and so on. Now, that democratic process has broken down. Technological power is so great, and so concentrated and controlled, that people say: “We have no choice but to adapt to this revolutionary technology”.
It’s important to reclaim our ability to act.I believe that in the future, schools will become a kind of nerve centre for the knowledge economy, for innovation, and for social change. In part, because they can bring together resources and spaces where people can meet and do things together.
We often think of innovation as something that happens when one person has a great idea. But real innovation takes place when many people use these new technical opportunities and integrate them into their social practices. It has a lot to do with bottom-up processes, where people learn to make sense of new technical possibilities. It’s not something done by a single person; it’s about creating meaning, knowledge and social learning. Educational institutions like schools can become this kind of community.
About the Image
Two older women are visiting enjoying a visit at the museum of technology and are comparing an AI model to previous technological breakthroughs. This image was created as part of the research project co-led by Eleonora Lima (KCL) and We and AI, “Empowering older voices through sensory storytelling about AI”, funded by KCL Creative Practice Catalyst Fund. The image reflects the discussions and insights that emerged from the creative workshop held in July 2025 at the Colindale Library, London, amongst the older adults attending the event. Respondents showed humorous and historically contextual perspectives about generative AI which subverted the stereotypes of older people not being able to understand or meaningfully engage in discourse about AI use.