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New Report: Artificial Intelligence Tops List of State EdTech Priorities for the First Time

The latest annual survey from SETDA highlights shifting priorities, growing funding concerns, and the sustainability challenges facing state K-12 leaders.

WASHINGTON, D.C. (September 10, 2025) — Today, SETDA, the principal member association representing state and territorial educational technology and digital learning leaders, published its fourth annual State EdTech Trends Report, offering a look at the evolving priorities and challenges facing K-12 education technology leaders across the country.

The 2025 report, developed in collaboration with Whiteboard Advisors, draws on survey responses from edtech directors, state chiefs, CIOs, and other state education agency leaders in 47 states. As in prior years, the report combines survey data with state spotlights – including a dedicated spotlight on state leadership in artificial intelligence (AI) – that showcase promising strategies and innovative responses to pressing challenges such as sustainability, cybersecurity, device policies, and the responsible use of AI in schools.

This year’s report lands at a moment of significant transition for states, with pandemic-era relief funds now expired, tightening budgets, and shifting policy priorities while also charting the future of how technology supports teaching and learning. For the first time, AI rose to the top of the list of state edtech priorities — surpassing cybersecurity, which had led the rankings for the past two years.

“I would reminisce about the expressions on the faces of our students who thought Pong was the most exciting game they had ever played,” said Sydnee Dickson, former Utah State Superintendent of Public Instruction, in her preface to the report. “We are still in the early days of AI, and we are all those students in my classroom whose minds were blown by Pong.”

Among the key findings in the 2025 report and survey:

• AI Tops All Lists in 2025: For the first time, AI ranked as both the number one state edtech priority and the top state edtech initiative. Many states report active work on guidance, professional learning, and policy frameworks, while some have brought on expertise directly into their state agencies to support the responsible use of AI in classrooms.
• Funding Becomes the Biggest Unmet Need: With ESSER funds expired, states are grappling with how to sustain the edtech initiatives sparked during the pandemic. While federal relief wasn’t designed for long-term strategy, it revealed just how urgently schools need modernization—from infrastructure to professional learning. Now, states must carry that work forward with durable solutions. Only six percent of respondents indicated they have plans in place to continue funding edtech initiatives previously supported with federal stimulus dollars — a sharp decline from 27% in 2024.
• Device Use and Student Well-Being: A majority of states reported new or ongoing debates about restricting student device use in classrooms. Approaches vary from device bans, to an increased focus on digital citizenship and healthy technology use.
• Professional Learning Remains a Challenge: Educator professional development continues to be both a top state focus and an unmet need – particularly around the effective and safe use of AI in classrooms.
• Cybersecurity Still a Pressing Concern: Despite AI’s rise to the top of the priority list, cybersecurity remains a significant challenge, with state leaders underscoring the need for continued infrastructure investment.

“The rise of AI as a top state priority reflects just how quickly the education landscape is evolving,” said Julia Fallon, Executive Director of SETDA. “But what stands out in this year’s report is the through-line of commitment: state leaders are not chasing trends, they are developing policy and building frameworks that protect students, empower educators, and make technology a true driver of equity and impact. This is the work of system change, and states are leading the way.”

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About SETDA
SETDA is the principal membership association representing U.S. state and territorial educational technology and digital learning leaders. Through a broad array of programs and advocacy, SETDA builds member capacity and engages partners to empower the education community in leveraging technology for learning, teaching, and school operations.

For more information, please visit our website https://www.setda.org.