This paper was written to support the G20 artificial intelligence (AI) dialogue. With the rise of artificial intelligence (AI), education faces two challenges: reaping the benefits of AI to improve education processes, both in the classroom and at the system level; and preparing students for new skillsets for increasingly automated economies and societies. AI applications are often still nascent, but there are many examples of promising uses that foreshadow how AI might transform education. With regard to the classroom, this paper highlights how AI can accelerate personalised learning, the support of students with special needs. At the system level, promising uses include predictive analysis to reduce dropout, and assessing new skillsets. A new demand for complex skills that are less easy to automate (e.g. higher cognitive skills like creativity and critical thinking) is also the consequence of AI and digitalisation. Reaching the full potential of AI requires that stakeholders trust not only the technology, but also its use by humans. This raises new policy challenges around “trustworthy AI”, encompassing the privacy and security of data, but also possible wrongful uses of data leading to biases against individuals or groups.