Investors are starting to see the downside from the rapid acceptance of artificial intelligence.
Shares of a California education company called Chegg Inc. plunged Tuesday after it warned that the quick rise to popularity of OpenAI’s ChatGPT tool is causing fewer students to sign up for its services. And that’s having ripple effects, driving shares of U.K. education publisher Pearson Plc down the most in more than a year.
But the potential losers are coming into focus. Besides education, there’s customer service: French call-center operator Teleperformance SE warned last week that 20 per cent to 30 per cent of its call volumes could be automated in the next three years as chatbots become mainstream. The forecast helped push the stock down 14 per cent.
Some companies will benefit by using AI to reduce costs: International Business Machines Corp. said it expects to pause hiring for jobs it thinks could be replaced with artificial intelligence in the coming years. And Mould points to publishing as area where it can generate copy and support time-stretched editorial teams.
Chegg sank 46 per cent to US$9.50 at 8:36 a.m. New York time in premarket trading, while Pearson declined 9.9 per cent to 798.80 pence in London.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Week Ahead: Inflation data due; earnings from Netflix - BNN BloombergA look at what investors will be watching in the upcoming week.
Read more »
Enbridge buys underground natural gas storage facility from Fortis for $400M - BNN BloombergEnbridge Inc. has signed a deal to buy a large underground natural gas storage facility in B.C. for $400 million.
Read more »
JPMorgan First Republic deal ends second-biggest U.S. bank failure - BNN BloombergJPMorgan Chase & Co. agreed to acquire First Republic Bank in a government-led deal for the failed lender, putting to rest one of the biggest troubled banks remaining after turmoil engulfed the industry in March.
Read more »
Grand & Toy launches 'brand refresh' as it narrows focus to business customers - BNN BloombergGrand & Toy is now expanding in categories like health and safety, technology, office design and furniture and break room experiences.
Read more »
Most Canada government workers end strike after deal on wages - BNN BloombergAbout 120,000 workers in Canada's federal public service ended a strike after the government of Prime Minister Justin Trudeau agreed to wage increases of about 12 per cent over four years.
Read more »
Oil extends second weekly drop on concerns over China recovery - BNN BloombergOil extended two weeks of losses after data from China reignited concerns about a patchy recovery in the world's biggest crude importer.
Read more »