AI threat spreads to affect IBM and educational firms Pearson and Clegg

The euphoria around AI has up to now largely been viewed as a boon for stocks but the potential losers are coming into focus.

Investors are starting to see the downside from the rapid acceptance of artificial intelligence, as California education company called Chegg plunged after it warned that the quick rise to popularity of ChatGPT tool is causing fewer students to sign up for its services. 

The ripple effects are widening, driving shares of UK education publisher Pearson down the most in more than a year.