company

Chegg, Inc.

Education Technology (EdTech)
ScorePending
Awaiting crowdsourced evidence
Confidence
ApplicationModerate
medium
ImpactUnknown
low
OpennessUnknown
low
Chegg is an education technology company that has undergone a dramatic and publicly documented AI transformation, shifting from a human-expert-driven homework help and textbook rental model to an AI-powered personalized learning platform. The company partnered with OpenAI (GPT-4) in April 2023 and Scale AI in August 2023 to build proprietary LLMs and AI-driven learning tools, including CheggMate, Solution Scout, and AI-generated flashcards. Despite these investments, Chegg has been severely disrupted by generative AI competitors—particularly ChatGPT and Google AI Overviews—losing over 99% of its peak stock value and slashing approximately 45% of its workforce as of October 2025. The company now frames AI as both its primary threat and central recovery strategy, embedding it across products while relying on a network of subject matter experts to ensure quality and accuracy.
Application
How is AI being used?
Moderate
medium
Impact
How have people been affected?
Unknown
low
Openness
Company honesty about AI use.
Unknown
low
AI Tools & Platforms Detected
GPT-4 (OpenAI)CheggMate (GPT-4-powered learning companion)Scale AI (proprietary LLM development)Solution ScoutAI-driven flashcard generatorSkillMate (AI-based chatbot for Chegg Skills students)Machine learning and generative AI (platform-wide)
Key Evidence (11)
Chegg announced CheggMate, an AI learning companion built with OpenAI's GPT-4, in April 2023, combining GPT-4 with Chegg's proprietary content and 150,000+ subject matter experts
2023-04
web searchSource ↗
Chegg partnered with Scale AI in August 2023 to develop proprietary LLMs for a generative personalized learning assistant
2023-08
web searchSource ↗
Chegg's 2025 10-K states the platform is 'powered by AI-powered academic support thoughtfully designed for education coupled with access to a vast network of subject matter experts who help ensure quality and accuracy'
2025-02-24
sec filingSource ↗
Chegg's 10-K risk factors warn that AI tools have resulted in direct headwinds to its business and that non-subscriber traffic declined 49% year-over-year in January 2025
2025-02-24
sec filingSource ↗
Chegg slashed 45% of its workforce (388 employees) in October 2025, explicitly attributing cuts to 'new realities of AI' and reduced Google traffic, and described restructuring the operation of its academic learning products
2025-10-27
web searchSource ↗
Chegg embedded AI tools including Solution Scout and AI-driven flashcard generators across Chegg Study, reporting improved engagement and retention metrics; non-GAAP expenses fell 33% in Q2 2025
2025
web searchSource ↗
What insider reports could clarify
  • Specific internal workflow details on how and when subject matter experts review AI-generated content before it reaches students
  • Proportion of student-facing content that is AI-generated versus human-authored at present
  • Details on how proprietary LLMs developed with Scale AI differ from GPT-4 integration and their current deployment status
  • Whether Chegg's layoffs eliminated AI/ML engineering roles or primarily affected content and operations staff
  • Current status and user adoption metrics for CheggMate and Solution Scout post-restructuring
  • Internal responsible AI or AI governance policies, if any exist
  • How the strategic refocus on B2B Skills and Busuu language learning changes the AI product roadmap going forward
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