There’s no question that Generative AI tools in general, and ChatGPT in particular, have the potential to be highly disruptive to existing businesses. Several companies are highly exposed, and entire industries could be rapidly and heavily transformed.
One of the first “victims” of ChatGPT appears to be Chegg, which saw its stock plummet 40% this week after the CEO lowered Q2 revenue guidance and mentioned that ChatGPT was having a negative impact on new customer growth. I’ve put “victims” in quotes because at first glance, the market’s reaction seems to be overblown. Chegg actually delivered strong Q1 results, but investors are very nervous about Q2 guidance.
Chegg is launching its own AI-powered service, CheggMate, later this month in a beta to a select group of users.