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TechCheck

TechCheck+ AI Roadkill 5/5/23

TechCheck

CNBC

Disruptors, Cnbc, Investing, Tech, Management, Business, Technology, Faang

4.566 Ratings

🗓️ 5 May 2023

⏱️ 6 minutes

🧾️ Download transcript

Summary

You’ve heard about the AI winners – Microsoft, Google, Nvidia and others leading the shift. But what about AI roadkill? The companies who could see their entire business models eviscerated by the coming wave of generative AI? Edtech company Chegg was the first public company to blame AI and ChatGPT for a weak outlook, and lost 50% of its value in one day. But it won’t be the last. This week on TechCheck weekly, the companies most at risk from the AI revolution.

Transcript

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0:00.0

You've heard about the AI winners, Microsoft, Google, and video. They're leading the shift.

0:08.0

But what about AI Roadkill? The companies who could see entire business models eviscerated by the coming wave of generative

0:15.2

AI like Ed Tech Company, Chegg, the first public company to blame AI and ChatGBT for a week

0:20.8

outlook and lose 50% of its value in one day. It won't be the last.

0:26.0

This week on Tech Check Weekly we're looking at them, the company's most at risk from an AI revolution.

0:32.0

Anybody who thinks that AI is not going to have an impact just isn't really paying attention.

0:36.0

Microsoft, Open AI, Mid Journey, even Meta and Adobe have all built some hype and value around splashy AI announcements and real life

0:44.7

applications of their products. Generally that's been seen as a positive by

0:49.2

investors. The only major company that's seen public blowback is perhaps Alphabet as investors

0:54.7

criticize the company for being too slow to roll out AI projects publicly and

0:58.8

lose the zeitgeist lead to Microsoft. But taking a step back, Alphabet has been working on AI for decades

1:06.3

and it's still largely seen as a big beneficiary and driver of this computing shift.

1:11.2

So it's hard to say they've lost when you're still at the

1:14.5

top of the first inning. So it was notable this week when we saw the first real

1:19.2

victims of this chat gbt and new wave of AI chatbots.

1:23.2

Companies often blame soft results on the weather or inflation

1:26.6

or economic uncertainty, but Chegg had a new fall guy.

1:30.6

It came out and blamed artificial intelligence.

1:33.6

Chegg is an education software company.

1:35.9

It provides homework help, digital and physical textbook rentals, online tutoring and other student

1:41.2

services.

1:42.2

Basically, it is a resource for students.

...

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