Empowered by the development of the Internet and being accelerated due to COVID-19, online education has entered an explosive growth. This study analyzes the problem that China’s online education market has, the challenge that China’s online education enterprises face, and gives solutions based on intelligent education applications. The data of the study comes from an in-depth interview with practitioners and end-users. Results suggest that online education companies are in homogenous competition. Online education enterprises fail to compete differently by enhancing teaching quality, innovating curriculum, and teaching methods, which increased the customer acquisition cost and enlarged the losses of online education institutions. Further analysis found that the managers and investors believe that improving teachers' production capacity, reducing costs, improving user experience by artificial intelligence, while keeping humanistic care with more accurate, finer-grained, and multi-dimensional data might be the future direction. Furthermore, the study gives a solution based on neural language processing, knowledge graph and human-computer system.