ChatGPT puts homework help services in big trouble - GIGAZINE
It is becoming more common to use AI services such as ChatGPT.
Chegg not only provides direct advice on homework answers, but also offers content to help you understand your studies and 24/7 online tutoring services. Chegg has continued to grow its business since launching its Q&A service in 2014, and has shown phenomenal growth during the COVID-19 pandemic.
Changing Trends in Homework Help Services
A survey conducted by investment bank Needham found that 30% of students said they would use Chegg in the fall semester of 2024, down from 38% in the spring semester of 2024. Meanwhile, 62% of students said they would use ChatGPT in the fall semester of 2024, up from 43% in the spring semester of 2024.
According to the Wall Street Journal, Chegg had been considering developing a system that would automatically output answers using AI even before the release of ChatGPT. However, the development plan was rejected by executives. Also, when ChatGPT was released, there were opinions that 'ChatGPT can output incorrect answers, so it is not a threat to Chegg.'
However, a few months after ChatGPT was released, Chegg's internal data showed that 'students are increasingly using ChatGPT.' In addition, it was revealed that some of the answers output by GPT-4 were of higher quality than the expert answers accumulated on Chegg.
The Rise of AI in Education
In response to the rapid improvement in the quality of AI, Chegg partnered with OpenAI to launch a learning service using GPT-4. Today, we are announcing CheggMate, a new AI-enhanced learning service built with @OpenAI's most advanced model GPT-4 on our leading personalized learning platform. https://t.co/50yZiXaFq3 pic.twitter.com/ngTQrom9g1
The Latest Developments
Chegg announced a partnership with Scale AI in August 2023 to introduce AI into answer creation. In addition, the company has revamped its website and added a chat AI-style text box to its homepage. Despite these measures, the number of users continues to decline, and revenues fell 11% in the second quarter of 2024 compared to the second quarter of 2023. Furthermore, analysts expect revenues to fall 15% in the third quarter of 2024.
Chegg CEO Nathan Schultz told the Wall Street Journal, '91% of users are satisfied with Chegg's service. We want to target students who want better answers than they can get for free from a chat AI.'
Conclusion
As AI technology continues to advance, the landscape of homework help services is rapidly changing. With the rise of ChatGPT and other AI-powered solutions, traditional platforms like Chegg are facing the challenge of adapting to meet the evolving needs of students in the digital age.
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