Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - High school grades are increasingly viewed as the most important factor in college admissions, with 74% of colleges considering them significantly important, up from 52% a decade ago [1] - Concerns about grade inflation and the accuracy of high school grades as indicators of student achievement are rising, with studies showing a weak correlation between grades and actual performance on standardized assessments [2][3] - The use of artificial intelligence (AI) in high school coursework is growing, with 26% of students aged 13-17 using AI tools like ChatGPT for schoolwork in 2024, a significant increase from 2023 [6] Summary by Sections College Readiness Indicators - Approximately 69% of high school students believe grades are very important in the college application process, more so than essays (53%), admissions test scores (51%), and letters of recommendation (43%) [9] - The mean importance rating for high school grades is 2.62, while supplemental materials received a lower rating of 1.87 [11] Perception of AI's Influence - 71% of students agree that high school grades no longer accurately reflect student performance due to the potential for AI-assisted cheating [11] - 81% of students believe it is easy to use AI to cheat on assignments, and 59% think that students using AI achieve better grades [11] - 70% of students feel that AI provides an unfair advantage in the college application process [15] Differences by Academic Performance - Students with higher ACT scores are less likely to believe that AI leads to better grades or that grades accurately reflect performance due to AI [17][26] - The study indicates a significant difference in perspectives on AI's influence based on academic achievement levels [26] Implications for College Admissions - The increasing reliance on AI tools raises questions about the reliability of grades as indicators of college readiness, necessitating careful consideration in the admissions process [20][24] - The report highlights the need for ongoing monitoring of AI's effects on college readiness indicators and fairness in admissions [24]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The rise of statewide school-day ACT testing programs has significantly increased participation rates, with an average increase of 28 percentage points in the first year of implementation across various states [4][10] - The ACT is now part of the statewide assessment program in twenty-three states, providing a more inclusive picture of college readiness by allowing more students from low-income and underserved populations to participate [2][5][6] - School-day testing has led to a more representative testing population, with 78 percent of the ACT 2024 graduating class participating in at least one school-day ACT administration [4] Summary by Sections Statewide School-Day ACT Programs - Since 2001, the implementation of statewide school-day ACT testing has allowed for a more inclusive assessment of student readiness, with significant increases in participation from diverse demographics [4][5][6] - The average participation rate in states with school-day testing rose by 28 percentage points in the first year, indicating a substantial shift in accessibility [10] Insights from a More Representative ACT Graduating Class - The expansion of school-day testing has revealed that 43 percent of students in the ACT graduating class of 2024 did not meet any College Readiness Benchmarks, highlighting the need for improved academic and workforce readiness [21][22] - Among students who reported no education or training plans after high school, 26 percent still enrolled in college, suggesting that school-day testing can influence students' postsecondary plans [25][26] - Students who completed a core curriculum scored an average of 2.6 points higher on the ACT compared to those who did not, emphasizing the importance of academic preparation [27][28] Conclusion - The implementation of statewide school-day ACT programs has transformed the understanding of postsecondary readiness, providing educators and policymakers with better data to drive interventions and resource allocation [29][30] - These programs represent a critical step toward ensuring that all students, regardless of background, have the opportunity to demonstrate their potential and succeed [31]