Then ChatGPT arrived in November 2022, offering students instant answers for free and removing the need for a paid Chegg subscription.

@chuma_the_ai_coach

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Why it worked

The video effectively uses a relatable and impactful business story (a major company's downfall due to AI) to highlight the disruptive power of AI, resonating with a broad audience interested in technology and business trends.

Summary

The video explains how ChatGPT's arrival in late 2022 significantly impacted Chegg, a company that provided online homework help. Chegg's stock value plummeted by 99% as students shifted from paid subscriptions to using free AI tools like ChatGPT for instant answers.

Structure

1ChatGPT's arrival and impact on Chegg
2Chegg's business model and stock collapse
3The role of AI in disrupting industries
4Questioning the future of companies facing AI disruption

Product placement

OpenAI: ACTS - it is the company that created ChatGPT, which is mentioned as the cause of Chegg's stock collapse. Removing it would change the narrative. ChatGPT: ACTS - it is the AI chatbot that disrupted Chegg's business model. Removing it would change the narrative. Chegg: ACTS - its stock performance and business model are the subject of the video. Removing it would change the narrative. Genie-Yus AI: APPEARS - it is a logo on the creator's shirt. Removing it would not change what happens in the video.

Original caption

Did you know this ??😁 #ai #chatgpt #claude #futureofjobs #futureofwork

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OpenAI ChatGPT Chegg Inc NYSE: CHGG 0.82 USD -99.07% -87.24 past 5 years 17 Jul, 4:00 PM GMT+4 Disclaimer 100 50 0 2020 2026 Tag a friend... Clinchmarketplus Ad Follow GENIE-YUS AI

Transcript

Then ChatGPT arrived in November 2022, offering students instant answers for free and removing the need for a paid Chegg subscription. Only five months later, Chegg's CEO acknowledged during an earnings call that the chatbot was damaging its business. The stock collapsed 48% in a single day. In just 39 months, Chegg's market value collapsed from $14.5 billion to only $114 million, erasing 99% of the company's worth. Chegg may be the first major company effectively wiped out by AI. Chegg may be the first major company effectively wiped out by AI. At its peak, Chegg was worth $14.5 billion and dominated online homework help. Its business model was simple: charge students $19.95 a month for access to a massive library of 79 million answers built over more than a decade. If you are asking yourself what does this company do? So students used to use this website to go and find questions and answers to their exams and some of their most trickiest questions. Now because of AI and how it has been trained on all of the data that's publicly available on the internet, students stopped paying for that website and started using Chat GPT. And as a result, the company lost value. The question is, how many more other companies have suffered this loss and how many more other companies are going to suffer this? This is one of the ways in which AI is disrupting industries across the board.