Chegg Challenges Google’s AI Impact on Online Information
Chegg, an American educational company, has filed a lawsuit against Google, claiming that its AI summarization technology undermines original content in favor of “low-quality, unverified AI summaries.” This new technology extracts information from various websites and presents it to users without requiring them to click through.
In a lawsuit submitted on Monday, Chegg argues that Google’s AI features will create a “hollowed-out information ecosystem” that is neither useful nor trustworthy. This announcement coincides with the company’s release of its full-year financial results for 2024, which were shared through a press release.
According to Chegg’s CEO Nathan Schultz, these two announcements are interlinked. He claims that Google has unfairly retained traffic that previously directed users to Chegg, negatively impacting its acquisitions, revenue, and workforce.
The AI overview search system from Google was officially launched in April last year and has been implemented in over 100 countries. If users have not opted out of the AI summaries feature, they are likely engaging with it regularly. Google has heavily invested in AI technologies, recently releasing Google Gemini as a competitor to OpenAI’s ChatGPT in 2023.
Google collaborates with various sources to provide information, but Chegg’s lawsuit argues that traffic to its site is hindered by Google’s AI overview, blocking potential visitors by retaining their interactions within the Google ecosystem. This situation not only impacts Chegg but also raises concerns for the broader digital publishing landscape and students’ access to quality education.
In response to Chegg’s allegations, Google’s spokesperson Jose Castenada stated that the AI Overviews make Google Search more helpful, generating new opportunities for content discovery. He noted that Google’s AI features provide broader exposure to a variety of websites.
The case is being presided over by U.S. District Judge Amit Mehta, who has previously contended that Google violates antitrust laws concerning its Chrome browser. Google is reportedly seeking to have the lawsuit dismissed.
