Chegg is one of an emerging group of firms that have already bridged the gap with generative AI like ChatGPT. Two others stand out: Stack Exchange, which runs Stack Overflow, an online forum for software developers, and RWS, a translation service. These emerging AI victims offer clues as to when businesses can be empowered by technology and when it will be undermined.

For years Stack Overflow was the place for developers to get help with difficult coding problems. Many are now turning to codewriting AI assistants instead, such as Microsoft’s Github Copilot. Two-fifths of coders say they use such tools. According to data provider Similarweb, Stack Overflow’s monthly internet traffic has halved over the past two years. Last year the company went through two rounds of layoffs, with a total of one-third of its workforce laid off. “Death by LLM,” is how Elon Musk described the company’s fate on X, the social media site he owns, referring to the big language models that underpin creative AI.

Translation services have also been affected by AI. RWS’s revenue fell 4% year-on-year in the six months to March, while profits fell 16%. Investors, fearing the impact of AI, have seen ChatGPT’s share price fall 57% since its launch in November 2022. Last year the company held an event for investors where it tried to convince them that AI would benefit its business. It seems few were convinced. Other issues, such as the launch of a new EU-wide patent scheme that hurt RWS’s patent-translation business, didn’t help the company. Earlier this year, his boss, Ian Al Makadam, said he would step down in 2025.

Examining these AI victims suggests three lessons for businesses. The first is that the risk to technology entrants is greater in industries where the potential damage from AI hogwash (known as hallucinations) is lower. Bug-ridden code is a problem for developers, but problems are usually easier to find before the software is deployed. Poor translations can be easily corrected. If an AI tool makes up facts while writing an undergraduate history essay, the implications are small (although a student caught using the AI ​​tool might be less). Mistakes when writing a legal contract or medical prescription, by contrast, are more costly. AI services will take longer to gain traction in industries that are more susceptible to manufactured nonsense.

The second lesson is that businesses are most at risk when off-the-shelf AI can replicate what they do with little customization. Tools like ChatGPT can already help translate text, write code, or extract history events. There’s a long tail of things that, with further tailoring, an AI tool could potentially do, such as planning and booking vacations or finding and contacting job candidates. But for now, travel agents and recruiters seem safe.

A final lesson is that, if your company is in the AI ​​firing line, using the technology to develop an original product can help save you. Chegg is working with Scale AI, a startup, to offer students machine-generated answers to questions that would have previously been written by humans. RWS has an AI-powered translation tool. Stack Overflow now helps users find the latest in its website, among other things.

The problem is that these applications are unimpressive. But consider the language learning app Duolingo. ChatGPT can mimic a half-decent French tutor and AI-induced error costs less for users. Even so, shareholders are starting to think of Duolingo as an AI winner. In September it unveiled a video chat feature that lets users practice their language skills with an AI-generated character called Lily. On November 6, this sardonic, purple-haired avatar joined the firm’s earnings call and presented its results. Analysts and investors erupted. The firm’s share price rose 6 percent over the next few days. As AI propels more industries, smart innovation is the best way for victims to escape their fate.