At London Book Fair in April, publishing industry leaders had plenty to say about the rise of generative AI technology, which many saw as potentially very disruptive to traditional business models.
This week, the possible impact of AI, and ChatGPT in particular, on publishing and related educational businesses came into sharper focus.
Dan Rosensweig, CEO of Chegg, a company that began life as a textbook rental company and is now an online learning platform for university students, made comments Tuesday about Chegg’s first quarter financial performance ended March 31, in which he mentioned “a significant spike in student interest in ChatGPT.”
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“AI technology is evolving at a very rapid pace, and Chegg is embracing it aggressively and immediately, Rosenweig told investors,” reports Andrew Albanese, Publishers Weekly senior writer.
The Chegg CEO “said he believed AI is the next big shift and that Chegg leadership has ‘reoriented’ the company to utilize AI in Chegg services. Rosenweigh also shared a downgraded financial forecast for the company,” Albanese tells me.
“The result? On Tuesday, Chegg’s stock price dropped by almost half, down 48.4% at $9.08,” Albanese said.