Chegg, the first company to admit that ChatGPT affects its revenue, chooses to embrace AI and lay off 4% of its employees

IT House News on June 14, American online education company Chegg admitted last month that student interest in the artificial intelligence chatbot ChatGPT had "surged significantly" and began to hurt its sales. Now the company has chosen to "join if you can't beat it." The company plans to integrate artificial intelligence into its brand, launched the AI ​​​​teaching aid product CheggMate, and laid off 4% of its employees.

Previously, Chegg CEO Dan Rosensweig claimed that OpenAI’s ChatGPT had an impact on their new customer growth rate. “ChatGPT is a fatal blow because the company’s main source of revenue is to provide homework answering services to students.” After that Chegg's stock price nearly halved, plunging more than 40%.

▲ Chegg Stock Information

After this, Chegg Company cooperated with OpenAI to develop its own AI teaching assistant product CheggMate, aiming to "help students better learn and understand homework content."

▲ Picture source Chegg official website

After inquiries, IT House learned that this teaching aid product called CheggMate is a "conversational learning assistant" that is connected to the GPT-4 model. Its main functions include:

• Driven plan (simulated teacher and students conduct 1V1 Q&A, students can choose the AI ​​teacher with their favorite teaching style);
• Personalized learning (providing personalized assessment and supporting practice tests based on students’ answering styles, learning progress, etc.);
• Adaptive tutoring (AI teachers can adjust teaching plans in a timely manner to meet students’ learning needs);
• Immediate feedback (providing immediate feedback through charts, conversations, etc.);

After the release of CheggMate, Chegg claimed that it “will lay off 4% of its employees” to “enable the company to better execute its artificial intelligence strategy.” According to Bloomberg speculation, this may be related to the lack of cash flow caused by Chegg's previous sharp decline in share prices.

▲ Picture source Bloomberg

But whatever the future holds for Chegg, it's clear that only a world of injured employees is reached.

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