Chegg Initiates Lawsuit against Google, Alleging that Artificial Intelligence-powered Search Results Negatively Impact Its Operations
Chegg, struggling to stay afloat, isn't backing down without a fight. The online education company, known for its textbook rentals and later expanding into homework help, took Google to task on Monday for allegedly engaging in anticompetitive practices. Chegg claims Google is unfairly scraping material from its platform for its AI-powered search results, stripping demand for original content and wiping out financial incentives for businesses like Chegg to invest in producing material for AI programs.
This isn't an unprecedented move - tech giants like Google have faced accusations of using search dominance to copy competitors' products and keep users on their own websites for years. Google argues that by using others' material in chatbots, they're transforming content significantly, making it fair use. They also claim AI-powered summaries don't drive users away from other sites because they help users find information more quickly, allowing them to explore in-depth when they find something interesting.
However, Chegg raises valid concerns. When users can copy-paste Google's responses to homework problems, why invest in detailed, accurate responses? Chegg's stock plummeted 30% the day after filing the lawsuit.
The tech giant is not entirely off the hook. Skepticism towards the industry remains within the new administration. Regardless, it's worth noting that Chegg's stock is at an all-time low, trading at just $1 per share, down from a peak of $113 in 2021.
Chegg, arguing that Google's practices contribute to the "dead internet theory," argues that bots and automated content are overrunning the web. Chegg itself has incorporated AI-assisted answers, but users allege these aren't always accurate. Chegg claims to target "curious learners" with more comprehensive and vetted solutions, aided by AI.
Chegg may not be the most endearing character, but its concerns are valid. AI tools like Google's summaries could impact the survival of websites, losing detailed, step-by-step knowledge that supports AI models in the first place. After all, the convenience of rapidly obtaining information might come at the cost of comprehension and understanding.
(Enrichment insights lightly incorporated, not exceeding 15% of total content)
Chegg is investing in producing original content for AI programs, but fears that Google's alleged scraping of material could wipe out these financial incentives. The use of technology in AI-powered search results is a topic of debate, with Chegg accusing Google of engaging in anticompetitive practices. This isn't the first time tech giants like Google have faced such accusations, as they've been criticized for utilizing search dominance to copy competitors' products for years. Google defends its actions by arguing that transforming content through AI makes it fair use and that AI-powered summaries don't drive users away from other sites. However, Chegg raises concerns about the impact of AI tools on the survival of websites, suggesting that they could lose detailed, step-by-step knowledge that supports AI models.
