Chegg, an online education company, has been hit hard by the rise of ChatGPT, a large language model chatbot developed by OpenAI. ChatGPT can generate text, translate languages, write different kinds of creative content, and answer your questions in an informative way. In recent months, ChatGPT has become increasingly popular with students. This is because ChatGPT can provide students with help with their homework, answer their questions, and even generate practice problems.
As a result of ChatGPT’s popularity, Chegg has seen a decline in its business. In the first quarter of 2023, Chegg’s revenue fell by 10% year-over-year. The company’s stock price has also fallen by more than 50% since the beginning of the year.
Chegg CEO Dan Rosensweig has acknowledged that ChatGPT is a “disruptive force” in the online education market. However, he says that Chegg is not giving up. The company is investing in new AI-powered technologies, such as its own chatbot called “CheggBot.” Chegg is also expanding its offerings to include new services, such as tutoring and career counseling.
It remains to be seen whether Chegg will be able to survive the disruption caused by ChatGPT. However, the company’s experience is a cautionary tale for other businesses that are not embracing AI. In the future, AI is likely to disrupt many industries, and businesses that do not adapt will be left behind.
How ChatGPT Works
ChatGPT is a large language model chatbot developed by OpenAI. It is trained on a massive dataset of text and code. This dataset includes text from books, articles, and websites, as well as code from GitHub repositories. ChatGPT uses this data to learn the statistical relationships between words and phrases.
When ChatGPT is asked a question, it first selects a set of words that are likely to be used in the answer. It then uses its knowledge of grammar and logic to generate a sentence that is both grammatically correct and semantically meaningful.
ChatGPT can also generate different creative text formats, like poems, code, scripts, musical pieces, emails, letters, etc. It can also answer your questions in an informative way, even if they are open-ended, challenging, or strange.
How ChatGPT Disrupted Chegg’s Business
ChatGPT disrupted Chegg’s business in a number of ways. First, ChatGPT can provide students with help with their homework, which is a major part of Chegg’s business. Second, ChatGPT can answer students’ questions, which is another major part of Chegg’s business. Third, ChatGPT can generate practice problems, which is a third major part of Chegg’s business.
As a result of ChatGPT’s ability to provide these services, students are less likely to need to use Chegg’s services. This has led to a decline in Chegg’s revenue and stock price.
The Future of Online Education
The rise of ChatGPT and other AI-powered tools is likely to have a significant impact on the future of online education. As AI-powered tools become more sophisticated, they are likely to replace many of the services that are currently provided by human tutors and instructors. This could lead to a significant reduction in the cost of online education.
However, it is important to note that AI-powered tools are not a replacement for human interaction. Students still need human guidance and support to learn effectively. AI-powered tools can be a valuable supplement to human instruction, but they cannot replace it entirely.
Overall, the rise of ChatGPT and other AI-powered tools is a major challenge for the online education industry. However, it is also an opportunity for innovation. Companies that are able to successfully integrate AI into their products and services are likely to emerge from this challenge even stronger than before.