What ChatGPT’s corporate victims have in common


Chegg's plummeting stock price exemplifies the disruptive impact of AI, specifically ChatGPT, on businesses that offer similar services.
AI Summary available — skim the key points instantly. Show AI Generated Summary
Show AI Generated Summary

In less than four years the share price of Chegg, an online education service, has dropped by 99%. A post-pandemic slump in digital learning is partly to blame for its tumble. A bigger problem for the company, though, is artificial intelligence (AI). Its customers are mostly students who want help answering their homework assignments, which often involves the virtual support of a human tutor. The rise of ChatGPT and its kind have created a free substitute for that service. On an earnings call on November 12th Nathan Schultz, Chegg’s boss, admitted that “technology shifts have created headwinds”. The same day the firm said that it would fire a fifth of its workforce.

Was this article displayed correctly? Not happy with what you see?

We located an Open Access version of this article, legally shared by the author or publisher. Open It
Tabs Reminder: Tabs piling up in your browser? Set a reminder for them, close them and get notified at the right time.

Try our Chrome extension today!


Share this article with your
friends and colleagues.
Earn points from views and
referrals who sign up.
Learn more

Facebook

Save articles to reading lists
and access them on any device


Share this article with your
friends and colleagues.
Earn points from views and
referrals who sign up.
Learn more

Facebook

Save articles to reading lists
and access them on any device