86–97% Cost Reduction Makes AI Economically Dominant for Price-Sensitive Demand
#1AI tutoring platforms have structurally broken the price-to-quality ratio that justified human tutor premiums. Khan Academy (free with Khanmigo at $9/month), Photomath (free tier), Duolingo (free/freemium), and ChatGPT ($20/month for unlimited academic help) collectively cover the majority of K-12 tutoring demand at a price point 80-97% below hourly human rates. Chegg, whose entire business model depended on students paying for human-backed homework help, saw its stock fall from $115 in 2021 to under $2 in 2025, with CEO acknowledgment that student migration to ChatGPT was the direct cause. Pearson's pivot away from physical textbooks and Duolingo's elimination of its contractor base in 2023-2024 confirm this is a sector-wide, not company-specific, structural shift.