Duolingo’s AI Shift Sparks Backlash – But Did It Matter?
▼ Summary
– Duolingo exceeded quarterly revenue estimates despite backlash for replacing human workers with generative AI, causing its stock to rise nearly 30%.
– The company transitioned to an “AI-first” approach, cutting contract workers and automating tasks, while expanding its language courses from 148 to more than double its previous offerings.
– CEO Luis von Ahn stated AI enabled rapid content scaling, claiming it would otherwise take decades to achieve similar growth manually.
– Despite user criticism of AI features, Duolingo’s revenue is projected to surpass $1 billion this year, with daily active users growing 40% year-over-year.
– While social media backlash impacted sentiment, the company adjusted its posting strategy to improve public perception, though financial performance remained strong.
Duolingo’s recent financial success highlights how AI adoption is driving growth, despite vocal criticism from some users. The language learning platform reported better-than-expected quarterly earnings, with shares jumping nearly 30% after the announcement. This comes months after CEO Luis von Ahn declared Duolingo would transition to an “AI-first” approach, reducing reliance on human contractors in favor of automation.
The shift allowed Duolingo to rapidly expand its course offerings, introducing 148 new language programs, more than double its previous catalog. Von Ahn emphasized that without AI, scaling content at this pace would have taken decades. While some learners argue the app’s quality has suffered, the numbers tell a different story. Revenue is projected to surpass $1 billion this year, and daily active users have surged by 40% year-over-year.
Investors questioned why growth landed at the lower end of the company’s 40-45% forecast. Von Ahn acknowledged that initial backlash over AI announcements temporarily hurt public perception. “We adjusted our social media strategy to focus on positivity,” he explained, noting that toning down edgy posts helped improve sentiment.
Criticism persists, particularly on platforms like TikTok, where users sarcastically question whether Duolingo’s content is AI-generated. The company playfully responds, clarifying that human teams still produce much of its material. Yet, despite mixed reactions, the financial results speak for themselves, proving that, for Duolingo, prioritizing efficiency and scalability through AI is paying off.
(Source: TechCrunch)
