Chegg Sues Google Over AI Search Summaries Impacting Revenues
Chegg is suing Google parent Alphabet over claims the search engine's artificial intelligence summary tool has hit its revenues. The company's CEO says Google AI Overviews serve to keep users on Google, retaining traffic that historically came to Chegg and impacting its acquisitions, revenue, and employees. Chegg is exploring a sale of the business or alternative options to maximize shareholder value.
- This case highlights the broader struggle for edtech companies to adapt to AI-driven changes in user behavior, as generative AI tools like ChatGPT continue to disrupt traditional learning platforms.
- As more industries are transformed by AI, what role will governments play in regulating the impact of these technologies on businesses and workers?