Breakingviews - Chegg pitches itself as an AI middleman

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Educational software company Chegg is trying to stay one step ahead of artificial intelligence. Its 8.2 million student subscribers could easily turn to free AI-powered chatbots like ChatGPT as an alternative aid for homework and test prep: AnitaRamaswamy

Students study in the law library at the University of Michigan in Ann Arbor, Michigan, U.S., September 20, 2018. Picture taken on September 20, 2018.is trying to stay one step ahead of artificial intelligence. Its 8.2 million student subscribers could easily turn to free AI-powered chatbots like ChatGPT as an alternative aid for homework and test prep. But the bot’s propensity to spit out false information and role in enabling cheating has led some schools to ban it.

An AI model is only as good as the data on which it is trained. To that end, Chegg on Monday announcedwith ChatGPT developer OpenAI to build a virtual tutor, CheggMate. The bot will use Chegg’s database of human-vetted quiz answers to ensure accuracy. Chegg’s pitch to subscribers is that it can offer quick and reliable answers, free of ChatGPT’s frequent fabulation. With awareness of AI proliferating, schools will face pressure to adapt; Chegg could fashion itself as a safer way to do so.

Investors seem hopeful: Chegg’s stock is up 10% since announcing that chief executive Dan Rosensweig would appear at an event with OpenAI boss Sam Altman on Monday. Other companies with domain-specific databases may follow suit, rebranding themselves as middlemen to avoid being made obsolete by AI.

 

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