Since the introduction of this ChatBot (ChatGPT) by Openai, there have been huge Impacts of ChatGPT in Edtech Industry. I will say this impacts are not favorable to the Edtech industry, because, according to the Q1 report of Chegg, it is below expectations.
Chegg stock is trading at lowest level since April 2017, this is due to the market share lost to ChatGPT, Josh Schafer, Yahoo Finance Analyst, said that Chegg stock has been falling for several months due the impact of ChatGPT, and as result of this, Chegg has commenced partnering with OpenAi to incorporate ChatGPT-4 into Chegg to build there own version of AI products. There is need for serious catchup by Chegg, because ChatGPT is free and most options on Chegg are not, Josh said.
Chegg stock plummets on ChatGPT
However, the corporation did not lose nearly half of its worth as a result of Q1’s performance. The company’s executives acknowledged in its earnings call that ChatGPT was limiting its capacity to acquire new customers, potentially slowing growth and making it more difficult to forecast future financial performance.
It is imperative to note that, “The company was launched in 2005, and began trading publicly on the New York Stock Exchange in November 2013. As of March 2020, the company reported having 2.9 million subscribers to Chegg Services. The services provided by Chegg have been controversial because there have been reports of student cheating using Chegg services“.
The Impacts of ChatGPT in Edtech Industry
Chegg, a company in the Zacks Internet – Software sector, reported sales for the three months ended March 2023 of $187.6 million, exceeding the Zacks Consensus Estimate by 1.27%. In contrast, last year’s revenues were $202.24 million. Over the past four quarters, the company has four times exceeded consensus revenue projections.
The management’s remarks on the earnings call will be largely responsible for determining if the stock’s current price movement based on previously revealed numbers and anticipated future earnings can be sustained.
ChatGPT Responds on the Impact on Edtech Industry
I ask ChatGPT this question “will there be a negative impact of chatgpt in the edtech industry?” below are its responds:
As an AI language model, ChatGPT is designed to provide helpful and accurate responses to a wide range of questions on various topics, including education. The use of AI language models like ChatGPT in the edtech industry has the potential to significantly enhance and improve educational experiences for students and educators alike.
However, like any technology, the use of AI language models in the edtech industry may have some potential negative impacts. Some concerns include:
- Dependence on technology: As AI language models become more prevalent in education, there is a risk of students and educators becoming too reliant on technology for learning and teaching, which may reduce critical thinking and problem-solving skills.
- Data privacy and security: The use of AI language models in the edtech industry involves collecting and storing sensitive data about students and educators, which raises concerns about data privacy and security.
- Bias and discrimination: AI language models are trained on large datasets, which may contain biases and perpetuate discrimination. This can result in the perpetuation of stereotypes and inequalities in education.
- Limited personalization: AI language models can provide personalized learning experiences for students, but they are limited by the data they are trained on and may not always be able to provide a truly personalized experience for each student.
To mitigate these potential negative impacts, it is important to use AI language models in the edtech industry responsibly and ethically. This includes ensuring that data privacy and security are prioritized, addressing biases and discrimination in the data used to train AI models, and balancing the use of technology with other teaching and learning strategies to promote critical thinking and problem-solving skills.