Which Jobs Are AI Replacing? The Chegg vs. ChatGPT Case Study

As AI like ChatGPT rapidly advances, roles relying on straightforward answers—like customer support, tutoring, and study help—are most at risk. Chegg’s sharp decline reflects this shift. Since ChatGPT’s release in late 2022, Chegg’s stock price has plummeted nearly 90%, losing $14.5 billion in value. Subscription drop-offs and workforce cuts signal that students now prefer free AI-powered tools over paid services. As AI evolves to tackle complex tasks, jobs in education, customer support, and data analysis could be next to face disruption.

The recent rise of ChatGPT has brought an urgent question to the forefront: which types of jobs are most vulnerable to replacement by AI? Chegg, once a leading platform in the educational tech industry, is a case study of how quickly AI can disrupt established business models and job roles. Chegg’s initial success in offering students affordable, fast homework help has turned to struggle as ChatGPT has rapidly outpaced it in popularity, with the chatbot providing similar help instantly and, in many cases, for free.

Since its early days as an academic aid platform, Chegg has been a fixture in online education. The company’s revenue model depended on a large workforce, primarily overseas contractors, to supply quick, accurate answers to a vast number of student queries. This job demand boomed during the COVID-19 era, pushing Chegg’s value to new heights.

Chegg’s struggles are indicative of a larger trend across multiple sectors. As AI technology like ChatGPT continues to advance, roles in repetitive, question-based services (like customer support, tutoring, and similar helpdesk positions) may face disruption. As AI increasingly handles these tasks, the demand for specific human roles in such industries may decline. According to industry analysts, the risk isn’t limited to education; fields like legal research, customer support, data entry, and content generation could also see changes, as AI becomes increasingly capable of handling structured, information-based tasks.

In response to AI’s rapid ascent, Chegg has attempted to pivot by integrating AI into its services. For instance, Chegg tried to develop “Cheggmate,” an AI-powered solution that leveraged GPT-4 to enhance its response accuracy. However, ChatGPT’s free, flexible service still remained more appealing to students.

Chegg’s challenges emphasize a larger picture. The question-based roles that AI is currently targeting may expand, with applications in customer service, legal research, and finance. However, AI also creates new roles in managing, customizing, and ethically developing these AI systems. The adaptation of both companies and employees in understanding these changes could shape the job market of the future.