More than test preparation – a formative AI learning tool

Author: Eunice McAllister, Director of Business Development, PSI Services

While AI is already advancing our ability to develop and deliver assessments, another exciting field for the application of AI in testing is emerging – test preparation. AI gives us the opportunity to go beyond traditional summative practice tests and support our candidates through a formative learning journey, setting them up for success.

A lot of discussions about AI to date have been highly theoretical, with understandable concerns about security and accuracy. Test preparation offers a great place to start for any organisation that is cautious about AI but also curious and perhaps concerned about falling behind.

In 2025, the practical application of AI will be an important focus for the assessment industry and the team at PSI, as well as the partners we work with. We’ve already made exciting progress in 2024 with groundbreaking advances across key areas of the assessment lifecycle, including test preparation.

AI-powered test preparation: with speed and rigour

AI is transforming test preparation, moving us from basic practice tests to tailored, adaptive experiences. This gives candidates much more than just a score. They receive performance feedback that is clear, accessible and accommodating to diverse needs.  It’s a win-win. Candidates get access to flexible test preparation at a time and place that suits them, while meeting the needs of the assessment programme. Including the need for standardised practice tests.

Used in this way, real-time AI reinforces user strengths and addresses areas for improvement, enhancing engagement through gamified features like badges and leaderboards. It not only prepares candidates with a realistic preview of what they’ll see on test day but also provides instant feedback and progress tracking.

For candidates, these new test preparation tools help them reach their full potential, significantly reducing test day anxiety. We’ve seen that those who engage with our enhanced test preparation are much more likely to pass on their next attempt than those who just engage in practice tests.

For assessment organisations, using AI makes the process for developing high quality test preparation materials both fast and efficient. It’s also an opportunity to monetise test preparation with fully branded practice test apps on the App Store, customised to individual programmes. We’ve seen that a third of candidates who purchase and complete a practice test will go on to buy an available test preparation solution.

If you’d like to find out more about AI-powered test prep, a recent episode of the PSI Tried and Tested podcast with Yermie Cohen, founder of Memorang, is a good place to start.

AI-driven test development: powering productivity and quality

The next step we are exploring is the use of AI to develop larger and more diverse item banks – reducing the risk of item exposure and increasing test security. However, it is still important that we use AI alongside Subject Matter Expert (SME) review to ensure accuracy and relevance.

Our human-in-the-loop process has already been thoroughly tested and streamlined while building the PSI AI-powered test preparation solution. When the process is used during test development, organisations benefit from rapid, scalable item creation with the quality assurance of human collaboration and oversight. AI is used for routine tasks, while SMEs are empowered as ‘content architects’ to guide, verify and refine test content – ensuring every item meets the required standards. SMEs spend more time on item review, and less on item creation.

Future proof to AI

For candidates, AI-powered test preparation helps them perform at their best on test day. For assessment organisations, there are even more ways to implement AI across the assessment lifecycle, including test content development and secure test delivery. Whether AI is used to create test preparation materials or scale-up content generation, these AI advancements allow rapid transformation of current systems. Taking AI from the theoretical to the practical and future proofing your organisation for AI.

For further information visit the PSI website: Test preparation & practise tests powered by AI | PSI