Recently, several education platforms, including Chegg, Pearson, and Duolingo, saw their stocks plunge due to the growing popularity of online assistant ChatGPT among students. Chegg’s shares declined as much as 50% after its CEO mentioned that the AI-based service is having a powerful, negative influence on their growth rate.
Chegg is an e-learning platform renowned for its homework assistance, which cost students $14.95 per month. However, with the emergence of ChatGPT, many students now have access to the same help for free, reducing the demand for the subscription service.
In addition to this, many teachers have implemented a complete prohibition on Chegg’s use in their classrooms, as it was once known for helping students gain an unfair advantage over their classmates. Of course, this fear has now extended to ChatGPT as well. Not only that, but it is suggested that universities banning the app may be damaging their own admission rates.
Chegg is not giving up, however. To compete with ChatGPT, they have begun developing CheggMate, which will utilize the power of GPT-4 to provide personalized learning experiences to the users. Whether or not this will be enough to get their numbers back up remains to be seen.
