ChatGPT hits online education

The US online learning platform Chegg has said that ChatGPT has started to have a negative impact on its student numbers, as it reported a drop in revenue by 7% to $188 million. And revenues are predicted to fall even further in the next quarter.

Chegg’s CEO Dan Rosebsweig explained: “In the first part of the year we saw no noticeable impact from ChatGPT on our new account growth and we were meeting expectations on new-signs. However, since March we saw a significant spike in student interest in ChatGPT. We now believe it is having an impact on our new customer growth rate.”

Shares in Chegg fell by 50% after the warning and investors will now be looking closely at the impact ChatGPT has on others working in the education and publishing field such as Pearson, Udemy and Coursera, according to reports in Bloomberg.