US-based online learning platform, Chegg, has announced plans to cut its workforce by approximately 4%, blaming the growing influence of OpenAI’s ChatGPT on its business. According to the CEO of Chegg, more students are turning to artificial intelligence for homework assistance, resulting in a decline in the company’s customer base.
The news comes as major businesses worldwide continue to restructure their workforces in response to the effects of the COVID-19 pandemic. Chegg is just one of many companies finding itself adversely affected by the rise of artificial intelligence, which is increasingly rendering human jobs obsolete.
Chegg’s CEO confirmed that the company would reduce its workforce by around 80 employees, as the platform struggles to maintain its customer base amid competition from OpenAI’s ChatGPT. The impact of AI on jobs has long been a topic of concern, with many fearing that the rise of automation could lead to mass unemployment.
Despite these fears, AI continues to play an increasingly important role in a range of industries, from healthcare and logistics to finance and retail. As firms enhance their technological capabilities, some experts predict that AI could eventually lead to a more efficient and productive workforce, as new jobs are created to support emerging technologies.
In the meantime, however, the impact of AI on the labor market is driving many companies to implement cost-saving measures, including layoffs and reorganisations. Chegg is just one of many firms struggling to navigate the ongoing challenges posed by the COVID-19 pandemic combined with the rise of automation.
As the world continues to adapt to the ongoing impact of COVID-19, businesses will need to remain mindful of the challenges posed by AI, while embracing new technological innovations and seeking new ways to grow and thrive in the post-pandemic world.
