How ChatGPT Led to the Downfall of an Online Education Giant

November 11, 2024

Once a go-to resource for students seeking homework help, Chegg has seen a dramatic fall, with its stock down 99% as students increasingly turn to ChatGPT for academic support. The AI-driven platform offers instant, free answers and personalized assistance, providing a compelling alternative to traditional education tools like Chegg. As ChatGPT gains traction among students, Chegg has struggled to keep up, losing its user base and market share to the AI disruptor.

This shift reflects a broader trend in education, as AI technologies redefine how students learn and access information. While Chegg relied on subscription-based models and human-guided solutions, ChatGPT’s fast, AI-powered responses are proving more appealing for today’s tech-savvy students, leading to Chegg’s steep decline.

Chegg’s downfall underscores the impact of AI on traditional business models, especially in sectors like education where immediacy and accessibility are highly valued. As AI continues to evolve, more industries may need to adapt swiftly or face similar challenges.

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