Education publisher Pearson Plc is outlining how it’s integrating artificial intelligence across its operations a week after its shares fell over fears that AI tools such as ChatGPT will undermine its business.
(Bloomberg) — Education publisher Pearson Plc is outlining how it’s integrating artificial intelligence across its operations a week after its shares fell over fears that AI tools such as ChatGPT will undermine its business.
In an unscheduled stock market statement Tuesday, Pearson’s Chief Executive Officer Andy Bird said the London-based firm would use AI in a range of applications, such as generating quizzes and summaries based on learning materials in its Pearson+ subscription product.
Last week, rival Chegg Inc.
warned that ChatGPT was threatening the growth of its homework-help services, sending its stock plunging by nearly 50%. Pearson’s shares sank 15% at the time, though it recovered some losses in subsequent days.
Bird said Pearson is working on an AI-powered tutor for people studying English. The company also reiterated its full-year financial guidance.
Its shares rose as much as 3.3% following the statement.
“As generative AI develops, we expect it to create significant positive opportunities for Pearson, due to our unrivaled depth of content and data,” Bird said.
“Learners and educators place enormous trust in us so we have a responsibility to be thoughtful and considered in how we use this technology, whilst continuing to move at pace to enhance our products.”
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