Abstract
The paper empirically examines how the spread of generative artificial intelligence (AI) has affected the financial sustainability of education providers. Using annual financial statements of four listed education companies for 2022–2024 — Duolingo, Coursera, Udemy and Chegg — revenue dynamics, net profit margins and compound annual growth rates are compared. Companies that embedded generative AI into their core products increased revenue by 25–102% and improved margins, while the company whose core service was substituted by AI tools saw revenue fall by about 20%. Three channels through which AI affects financial sustainability are identified, and implications for universities are formulated.
References
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