Education AI in 2026 is the practice of building production AI for adaptive tutoring, grading assist, instructor copilots, accessibility, and student-service workflows, under FERPA and state-privacy controls where minor-student data never leaves the LMS boundary unauthenticated and AI is read-only on grades until an instructor approves a writeback through LTI Assignments and Grades Service 2.0. Unlike consumer ed-tech (Quizlet, Khan Academy) which serves end-learners directly, production education AI runs inside the institution Canvas, Blackboard, Moodle, Schoology, or PowerSchool deployment. Unlike rules-based adaptive learning (Knewton-era branching trees), AI tutoring uses LLMs to interpret free-text student answers, generate worked-example feedback, and route conceptual gaps to the instructor. Common integrations include Canvas, Blackboard, Moodle, Schoology, Google Classroom, PowerSchool, and LTI 1.3 for SSO and grade passback. Compliance maps to FERPA, COPPA for under-13 learners, state student-privacy laws (SOPIPA, NY Ed Law 2-d), and WCAG 2.1 AA for accessibility.