ChatGPT sinks Ed-Tech stocks: We asked if it will replace online...
The recent rise of ChatGPT, the generative AI chatbot developed by OpenAI, has caused panic in the online learning industry, with share prices of companies like Chegg and Pearson falling significantly due to fears that the technology will replace traditional education methods.
However, when approached by FinancialExpress.com, ChatGPT responded by saying that it is not capable of replacing online classes or school textbooks. While ChatGPT can provide information and answer questions, it cannot take the place of a human teacher or the educational resources they provide.
The CEO of Chegg, Dan Rosensweig, has admitted that the explosion of generative AI chatbots like ChatGPT has hurt the company's revenue, leading to a 50% drop in its share price after reporting a 7% year-on-year drop in sales and a 5% fall in subscribers. Pearson, another education company, also saw a 15% drop in its share price due to the impact of ChatGPT and other AI chatbots.
However, ChatGPT itself stated that AI technology has the potential to transform education, but it is unlikely to completely replace human teachers or educational resources. Instead, AI can be used to supplement traditional teaching methods, provide personalised learning experiences, and automate administrative tasks.
Market experts believe that businesses like call centres or tutoring services, which require little specialisation, are the most vulnerable to AI for now. However, if the technology is used properly, it could provide significant support in the education sector.
