Chegg’s AI Model Impacting Customer Growth and Stock Price Sinks 50%

New York, May 2 (EFE).- The American online education company Chegg sank almost 50% on the New York Stock Exchange this Tuesday, after acknowledging that the artificial language model generated by artificial intelligence (AI) ChatGPT ” is having an impact” on your customer growth rate.

The company, which yesterday announced profits of 2,186,000 dollars (1,989,000 euros) in the first quarter of the year, 62% less than in the same period last year, assured that, given the uncertainty generated by the new situation , did not offer its revenue expectations for the entire year, as companies often do when announcing their results.

“In the first part of the year, ChatGPT did not have a noticeable impact on the growth of our new accounts and we met expectations for new enrollments. However, since March, we have seen a significant increase in student interest in ChatGPT We now believe that it is impacting our growth rate of new customers,” said Chegg president Dan Rosensweig.

In some comments to shareholders collected by the company’s website, Rosensweig also expressed his conviction that the education sector in general is already being affected by artificial intelligence, which according to him, will be an advantage for Chegg, something that seems that has not convinced investors.

“Generative AI and great language models will impact society and business, both positively and negatively, at a faster rate than people are used to,” he warned.

Nor did the Chegg president and chief executive officer seem to calm investors, who assured that he continues “to see very strong retention rates, which suggests that those students who already understand the value of Chegg” continue to choose the company and use its services. “in high rates”.

Rosensweig also noted that he met with OpenAI CEO Sam Altman seven months ago “to discuss the future of AI and education.”

“As a result of those conversations, we quickly reoriented our business to focus and prioritize the use and incorporation of AI into Chegg’s services,” he said.

In this regard, he noted that the company has already embraced the new technology and applied it in partnership with OpenAI in a new product called CheggMate to make learning “more personalized, adaptive, accurate, fast and efficient.”

“According to our research, 85% of students prefer to have human experts involved in their study support, so we believe the future of learning is a blend of AI technology with human support to build trust and ensure accuracy and accuracy.” relevance,” he concluded.

Since the advent of the most advanced models of language generation by artificial intelligence, both discussions and apocalyptic and hopeful messages about new technology and its implications for the progress of society have multiplied.