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Christopher Hutton, Technology Reporter


NextImg:Corporations start to feel the bite of AI: IBM, Samsung, and Chegg

High-profile companies are starting to see their businesses disrupted by artificial intelligence.

Three high-profile companies said this week that they were making changes to employment, operations, or other facets of business in response to the rise of artificial intelligence-powered tools such as OpenAI's GPT and Google Bard.

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Chegg

The online education company Chegg said on Monday that ChatGPT has significantly cut into its business. "In the first part of the year, we saw no noticeable impact from ChatGPT on our new account growth, and we were meeting expectations on new sign-ups," CEO Dan Rosensweig said during a Monday earnings call. "However, since March, we saw a significant spike in student interest in ChatGPT. We now believe it's impacting our new customer growth rate."

The company's stocks fell more than 40% on Tuesday in response to Rosensweig's claims.

IBM

The tech manufacturing firm stated on Monday that it intends to pause hiring for thousands of jobs that it intends to replace with AI programs. The jobs most affected would be those with back-office functions, such as human resources. "I could easily see 30% of that getting replaced by A.I. and automation over a five-year period," IBM CEO Arvind Krishna told Bloomberg. The company employs an estimated 26,000 people in those roles.

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Samsung

The mobile phone developer ordered employees to stop using ChatGPT for coding after discovering that sensitive code had been fact-checked with the bot. Engineers accidentally leaked internal source code via ChatGPT in April that was considered confidential. For example, an employee used a chatbot to convert meeting notes into a presentation. The presentation included details the company did not want a third party to be aware of, which would be contained within the bot's memory banks for a time.