AI may be the least of edtech’s worries

Shares of edtech firm Chegg nonetheless haven’t recovered from their dive earlier this month. As chances are you’ll recall, its inventory fell off a cliff after the corporate reported its Q1 results.

Whereas Chegg beat analyst expectations for the primary quarter of the 12 months, it additionally raised a warning that didn’t fall on deaf ears: It warned that ChatGPT was hindering its capacity so as to add new subscribers.

The Alternate explores startups, markets and cash.

Learn it every morning on TechCrunch+ or get The Exchange newsletter each Saturday.

“[S]ince March, we noticed a big spike in pupil curiosity in ChatGPT. We now consider it’s having an impression on our new buyer progress fee,” Chegg CEO Dan Rosensweig said through the firm’s Q1 earnings name.

Chegg is especially susceptible to competitors from generative AI; though chances are you’ll understand it as a spot to lease faculty textbooks, “it has additionally confirmed an extremely standard software for dishonest,” TechCrunch+ reported.


Leave a Reply

Your email address will not be published. Required fields are marked *