I got the benefits of letting kids go at their own pace etc. at a fraction of the cost but with a bit of (mostly fun) effort by home educating my kids. Tutors for two subjects (three in exam terms as English language and literature are separate GCSEs), both Oxford graduates in those subjects. No AI but lots of books and other resources.

Most kids are motivated given the right environment. Enjoying learning is natural.

The AI element of what you describe does not appeal to me. The weekly testing and assignment to grades sounds a bit rigid too.

Considering how much one to one human tutoring 40k an year could buy that does not sound like good value.