The claim

Start an AI-powered tutoring or homework-help service and charge students.

Chegg's October 2025 layoffs and OpenAI's July 2025 Study Mode launch drew wide coverage of AI replacing paid homework help.

How we checked

This is an evidence check, not a hands-on test. We reviewed platform rules and policies, published earnings data, regulator warnings and reporting: 2 sources, listed below.

Costs

Start-up cost
Varies
Effort
medium

What the evidence shows

Students now get AI study help free from the chatbots themselves, which has hit even established paid homework-help businesses. OpenAI launched Study Mode in July 2025 for Free, Plus, Pro and Team users, guiding learners step by step with hints and quizzes. Chegg cut 45% of its workforce (388 roles) in October 2025, citing students moving to free, general-purpose chatbots and falling Google referral traffic. OpenAI itself notes Study Mode can behave inconsistently and make mistakes, but students can already get AI study help free.

Realistic earnings: Charging for AI-generated homework help competes with free tools that hit a large company like Chegg hard. The sources do not show earnings for individuals; any viable offer would likely need to rest on the tutor's own subject knowledge.

Limitations

Earnings ranges are typical outcomes for a beginner, drawn from the sources; some people do far better or worse. Platform rules change often, so check the latest policy before you start.

VerdictOverhyped

Rarely matches what is promised.

Sources

  1. Maginative: OpenAI's Study Mode launched 29 July 2025 for Free, Plus, Pro and Team users; OpenAI notes inconsistent behaviour and mistakes maginative.com
  2. Fortune (Oct 2025): Chegg cuts 45% of staff (388 roles), citing students shifting to free chatbots and lower Google traffic fortune.com