ChatGPT has sent the share prices of online learning firms such as Chegg and Pearson sinking on fears that it will replace traditional education. However, OpenAI’s chatbot believes it won’t be able to do so, it said when prompted by FinancialExpress.com. “I am not capable of replacing online classes or school textbooks. While I can provide information and answer questions, I cannot take the place of a human teacher or the educational resources they provide,” replied ChatGPT. This reporter had asked: “Will ChatGPT replace online classes or school textbooks?”
The signs of AI bots replacing traditional ways of learning have shaken the education sector. The share price of US-based Chegg, an education tech company providing online homework help and textbooks, tanked nearly 50% on Tuesday after the company reported a 7% on-year drop in sales and a 5% fall in subscribers. Earlier, the CEO of the company had admitted that the explosion of generative AI chatbots had hurt the company’s revenue. Chegg’s fall pushed the shares of UK-based Pearson, which is also in the business of education, down 15%.
“In the first part of the year, we saw no noticeable impact from ChatGPT on our new account growth and we were meeting expectations on new sign-ups. However, since March we saw a significant spike in student interest in ChatGPT. We now believe it’s having an impact on our new customer growth rate,” Chegg CEO Dan Rosensweig told AFP.
On the other hand, ChatGPT itself said that while AI technology has the potential to transform education, it is unlikely that it will completely replace human teachers or educational resources. “Rather, AI can be used to supplement traditional teaching methods, provide personalised learning experiences, and automate administrative tasks,” it added.
Market experts believe that the companies which are most vulnerable to AI, for now, are businesses which require little specialisation – such as call centres or tutoring services but if the technology is used properly then it may provide significant support.