Chegg sues Google over claims AI search tool blocks user traffic – Financial Times
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Chegg is suing Google parent Alphabet over claims the search engine’s artificial intelligence summary tool has hit its revenues, leading the US-listed educational technology group to weigh up a sale of the business.
California-based Chegg, which provides study tools for students, filed the complaint on Monday claiming that Google’s AI Overviews, which presents users with summary answers to their queries, serves to keep users on Google’s own site.
Chief executive Nathan Schultz said the search giant’s AI search changes had “unjustly retained traffic that has historically come to Chegg, impacting our acquisitions, revenue and employees”.
He added this was “materially impacting” revenues, leading to the company to instigate a strategic revenue in which it would explore “a range of alternatives to maximise shareholder value, including being acquired, undertaking…
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