Global education company Pearson has acquired Internet Testing Systems (ITS), a digital assessment firm specializing in remote testing and AI-powered grading. This buyout is part of a larger consolidation in the educational technology market where major providers buy smaller, specialized software tools. For parents and educators, the acquisition means classroom tests and professional certifications will be increasingly automated, remote, and managed by a few dominant companies.
What Happened
On September 23, Pearson announced its purchase of Internet Testing Systems (ITS), a Maryland-based company that runs professional and educational testing. The deal builds on a commercial partnership established in 2009. Pearson will integrate ITS into its Pearson Professional Assessments division to scale up its remote testing and AI-powered assessments.
The acquisition comes amid a steep decline in educational technology funding. As we previously reported, school budget cuts are forcing EdTech companies to abandon general practice software and focus on high-stakes testing. Tracxn data reveals that annual equity funding in the sector fell from $4.3 billion in 2021 to $214 million in the first eight months of 2026. This financial squeeze has driven large-scale acquisitions. For instance, upGrad bought its competitor Unacademy for $206 million, a price representing a 94 percent drop from its peak valuation.
The Bigger Picture
Automated and remote testing raises questions about fairness and student well-being. As Pearson integrates ITS, educators are evaluating how these grading algorithms perform. Research shows that AI grading struggles to match human judgment. A study in Frontiers in Education found that while large language models are reliable at grading essay structure, they show only "slight to fair" agreement with human graders. Another study in PLOS One warned that automated essay-scoring models can violate basic fairness standards when grading different essay topics, introducing systemic biases.
Remote proctoring, which uses software to monitor students during exams, also creates problems. Research in the International Journal for Educational Integrity shows that remote proctoring causes severe student stress. Technical failures like frozen devices and browser errors compound this anxiety. A design framework on Kadhal.net notes that automated cheating flags trigger pressure on students with disabilities and pre-existing anxiety. Some students bypass the system entirely out of frustration.
What This Means for Families
The expansion of digital testing means students will encounter more automated exams. While schools might get smoother software integration, they will choose from fewer testing providers. Because algorithms are grading writing and monitoring behavior, parents must stay vigilant. If a platform falsely flags a student for cheating or issues an incorrect automated grade, families need clear ways to appeal to human educators.
What You Can Do
- Ask your child's school how often human teachers review and override AI-generated grades.
- Encourage students to take screenshots or record error messages during remote exams to document technical issues and protect against false cheating flags.
- Talk to school leaders about testing accommodations so that students with anxiety or learning differences are not penalized by automated proctoring software.