Who’s the next Chegg? A.I Could Threaten Main Revenue Sources For These Companies - Credit: CNBC

Who’s the next Chegg? A.I Could Threaten Main Revenue Sources For These Companies

The world of technology is ever-evolving, and Artificial Intelligence (A.I.) has become a major player in the game. A.I. is being used to automate processes, increase efficiency, and even create new products that weren’t possible before its existence. But with this newfound power comes potential risks for certain companies who rely on traditional revenue sources such as subscriptions or advertising fees to stay afloat.

Take Chegg Inc., an education technology company based in Santa Clara, California that provides online tutoring services and sells textbooks online for college students around the world. Chegg relies heavily on subscription fees from its customers to generate revenue; however, it could be at risk if A.I.-based competitors enter the market offering similar services at lower prices or even free of charge due to their lack of overhead costs associated with human labor needed to provide these services traditionally by hand.

Another example is Yelp Inc., which operates an online platform connecting consumers with local businesses such as restaurants and hotels through reviews written by users about those establishments they have visited or patronized in some way shape or form . The majority of Yelp’s income comes from advertisements placed on their website by local businesses looking to attract more customers; however, if AIs are able to accurately predict consumer preferences without needing user input then there would be no need for ads since AI can target specific audiences directly instead of relying on broad marketing campaigns like Yelp does currently . This could lead to a decrease in ad sales revenues for Yelp over time as AI becomes more sophisticated and accurate at predicting customer behavior patterns than humans can do manually today .

Finally we have Spotify Technology SA , a Swedish music streaming service provider whose main source of income comes from monthly subscription fees paid by users who want access unlimited listening options available through their app . However , just like Chegg , Spotify may find itself facing competition from AI-based rivals offering similar services but cheaper rates due again largely because they don’t require any human labor costs associated with providing these types of digital entertainment experiences traditionally done manually .

These three examples demonstrate how quickly AIs are becoming capable enough not only replace existing jobs but also disrupt entire industries where companies rely heavily upon traditional revenue streams such as subscriptions or advertisement sales for survival purposes . It remains unclear what impact this will ultimately have on each respective industry but one thing is certain: Companies must begin preparing now if they wish remain competitive against future AI-driven threats posed against them otherwise they may find themselves struggling financially down the line when it’s too late already make necessary changes needed survive long term success within rapidly changing technological landscape we live today ! |Who’s the next Chegg? A.I Could Threaten Main Revenue Sources For These Companies|Technology|CNBC

Original source article rewritten by our AI: CNBC




By clicking “Accept”, you agree to the use of cookies on your device in accordance with our Privacy and Cookie policies