Sisters’ startup EdSights uses AI to help schools improve retention

Only 56% of students who began college in 2012 actually graduated within the next six years, according to startup founders Claudia and Carolina Recchi.

The sisters’ own struggles as first-generation U.S. college students reinforced the challenge suggested by those statistics, they said. That prompted them to found EdSights, a startup using artificial intelligence to collect data from students and help universities increase retention rates.

The entrepreneurs grew up in Rome, moving to the U.S. to pursue their bachelor’s degrees.

“We faced a lot of issues in college — like we didn’t know what a GPA was or that we had advisors in place,” said Claudia, 23.

Claudia found herself wired into edtech in her senior year of college when she developed a free mobile app that engaged with students to collect data about their classroom experience. The app became popular quickly and scaled to more than 200 universities across the U.S. But Claudia wasn’t making any money.

“We asked university administrators, ‘What extra features would you pay for as a university?’ because we were trying to figure out how to monetize this free mobile app,” she said.

Their response: Help us save tuition revenue by improving retention rates. The average university loses about $10 million because of students dropping out, Carolina said.

A young team

Carolina came to the U.S. in 2010 to study international business at Babson College. Her younger sister followed suit two years later, arriving at Georgetown University to pursue a degree in statistics.

“We both always really valued our education,” said Carolina, 25. “Earning a degree can have a life-changing impact on someone’s future and we want to make sure that every student has access to that opportunity.”

The sisters founded EdSights in 2017 and came to Kansas City in 2018 to participate in the Techstars Kansas City accelerator program.

“We always knew that we wanted to start a company together at some point,” Carolina said. “We worked very well together. But we never knew it was going to be this early.”

Being a young team gives EdSights an edge over “old-school companies” hoping to solve retention issues, Claudia said. Most students drop out because of non-academic reasons like student debt, or having problems adjusting to college culture. However, firms that have been in the industry for a long time only tackle academic factors, she said.

“We understand the problem from the student’s side. And most importantly, we speak the same language that students speak,” Claudia said. “And so that allows us to build products are a lot more engaging.”

Identifying needs by chatbot

EdSights uses a conversational AI through a chatbot to contact students via direct text message. Questions like, “Have you seen your academic advisor yet?” or “Do you feel like you belong to the university?” pop up on their screens when they choose to use the platform.

“Part of using text messages was so that even students without smartphones can access the technology,” Carolina said.

The bot identifies struggling students and directs them to on-campus resources like the financial aid office or the career center. The non-cognitive data is simultaneously fed into a predictive model and alerts the university’s administrators to refocus their efforts in specific ways.

“Part of our job is to be that intermediary between the two, taking information from students and then translating it into something that is useful and actionable for the university,” Carolina said.

Privacy has been a concern when it comes to using artificial intelligence, but EdSights informs students beforehand that they are speaking to them on behalf of the university officials, Claudia said. The actual chat is never shown to administrators, though the aggregated data is shared, she said.

Though the founders see immense potential in the K-12 market as well, they plan to expand further into higher education in the next four years by reaching out to community colleges to improve retention rates.

More than 31 million students have enrolled in college and left without receiving a degree or certificate in the past 20 years, according to a report by the National Student Clearinghouse Research Center.

She said college students come from diverse backgrounds: parents with full time jobs and three or four children, low-income students, and first-generation students.

“The traditional student is not traditional anymore,” Carolina said.

This story was produced through a collaboration between Missouri Business Alert and Startland News.

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