AI vs traditional business - part 1 | Generative ai Learning Path | Best Generative ai use Cases | Generative ai use Cases pdf | Turtles AI

AI vs traditional business - part 1
  #Shares of online #education #company #Chegg have plummeted after the company announced that its #growth is being hindered by #ChatGPT, the #AI #LLM by #OpenAI. Chegg provides #homework #assistance and #online #tutoring through #Subscription #Services, which include Chegg Study PackChegg StudyChegg Writing, and Chegg #Math, as well as Busuu, an international language learning platform. The company's Busuu offerings can be accessed through its websites and on mobile devices, and the Skills and Other category encompasses its skills, advertising services, print textbooks, and e-textbooks offerings. CheggMate is meant to help students with their homework, but its full launch date is uncertain. During the company's earnings call on Monday, CEO Dan Rosensweig stated that there was no significant impact on new account growth in the early part of the year, but since March, there has been a notable increase in student #interest in ChatGPT, which is now believed to be affecting the company's new customer growth rate. Chegg's revenue for the quarter is expected to be between $175 million and $178 million, far below the analyst consensus estimate of $193.6 million. Despite beating first-quarter expectations on the top and bottom lines, with earnings per share ex-items of 27 cents above analysts' 26 cent estimate, and revenue of $188 million topping a $185 million consensus, Chegg shares closed down 48.41% to $9.08 on Tuesday. Following the results, Morgan Stanley analyst Josh Baer slashed his price target to $12 from $18, citing the overshadowing effect of AI on the results. Jefferies also downgraded the stock to hold from buy, citing the threat that artificial intelligence poses to Chegg. The Wall Street firm reduced its price target to $11 from $25. Chegg is developing its own AI product, CheggMate, in collaboration with OpenAI, which develops ChatGPT. However, Jefferies analyst Brent Thill says the impact of the product is uncertain and may not show up until FY24 at the earliest.