Chegg is getting a generative AI makeover just in time for back-to-school season

ChatGPT’s advanced abilities have the potential to shake up many industries, and online learning services are an early example of this. With a free, competent tool like ChatGPT that can help with homework and studying, why would students pay for an online learning service?

As a result, Chegg was a victim of ChatGPT, with its stock slicing in half in May. On Tuesday, Chegg announced its quarterly earnings report, which exceeded expectations and caused the company’s shares to surge by more than 25%. 

The company is trying to keep up that momentum by leveraging generative AI and announcing a partnership with Scale AI. 

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Scale AI will develop proprietary large language models (LLMs) for the online learning company to help support the development of a personalized learning assistant. The AI company has partnered with other noteworthy companies in the past, including the US Department of Defense. 

The new experience is set to combine Chegg’s robust proprietary content with generative AI to provide students with a conversational interface and personalized learning, including practice tests, study guides, and flash cards. 

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“With Chegg’s Large Language Models trained with our unique data sets, specifically for education, and with the help of our 150,000 subject matter experts, we will deliver a significantly enhanced and differentiated learning experience for students,” said Nathan Schultz, Chief Operating Officer of Chegg.

The new Chegg experience is slated to roll out over the course of the next two semesters. 

In April, the company revealed Cheggmate, which is meant to combine the power of GPT-4 with Chegg’s content to create personalized learning experiences for users on the platform. The integration with Scale AI might be just what the company needs to continue its upward trajectory.