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

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 means so as to add new subscribers.

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“[S]ince March, we noticed a major spike in scholar curiosity in ChatGPT. We now consider it’s having an affect on our new buyer progress price,” Chegg CEO Dan Rosensweig stated in the course of the firm’s Q1 earnings name.

Chegg is especially susceptible to competitors from generative AI; though you could comprehend it as a spot to lease school textbooks, “it has additionally confirmed an extremely well-liked instrument for dishonest,” TechCrunch+ reported.

AI could be the least of edtech’s worries by Anna Heim initially revealed on TechCrunch

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