Elite AI-powered schools insist they provide route to excellence

The newest entrant to New York’s elite school market makes the ultimate investment pitch to parents: if your child does not graduate as a millionaire, you get your money back.

Founders School in Manhattan promises to refund families its $150,000 annual tuition fee if their child has not made $1mn “in profit” upon completion of the four-year high school course.

Inspired by its parent organisation, Alpha School, which is focused on children aged 5 to 18, Founders School aims to compress the school day into three hours of study, during which pupils are taught by an “AI tutor” that adapts to their abilities. This frees up the rest of the time to work with mentors to build a business that the students own, such as services agencies and consumer apps.

But its offer of a launch pad into entrepreneurial stardom lies beyond the reach of most families. There are only 20 spots available in Founders School’s first intake this September, and it sets ruthless expectations for its pupils who will generally enrol at age 14. “Students who don’t put in the effort or who drag down the cohort culture will be removed,” the Founders School website says.

Alpha School has become a prominent adopter of AI in education, earning vocal support from figures such as hedge fund billionaire Bill Ackman on social media.

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Rather than conventional grades, Alpha’s preferred metric is “mastery” of the subject — pupils do not move on to the next lesson until they achieve 90 per cent understanding of the material.

There has been scant evaluation of AI’s long-term outcomes in education, Stanford researchers note. But as AI usage sweeps through schools globally, some families are worried about the risks of embracing it.

Founded in New York, the campaign group Parents for AI Caution in Educational Spaces has urged…