Pearson slides after Chegg warns over ChatGPT

Shares in education publisher Pearson slid on Tuesday after US firm Chegg, which provides online guidance for students preparing tests, warned over the impact of AI chatbots on its homework-help services.

Shares in Chegg were down 42% in pre-market trade after it said on Monday that since March, it had seen "a significant spike" in student interest in ChatGPT.

"We now believe it’s having an impact on our new customer growth rate," the company said in its first-quarter earnings release.

Chegg reported a 7% year-over-year decline in total net revenues to $187.6m.

At 1050 BST, Pearson shares were down 7.7% at 819p.