Duolingo Embraces AI-First Strategy to Accelerate Growth and Innovation

Duolingo aims to move quickly and take risks with AI. In a memo to employees shared on LinkedIn, Duolingo’s CEO, Luis von Ahn, laid out his vision to transform the company into an "AI-first" organization. “We can't wait until the technology is 100% perfect, ” von Ahn stated in the memo published Monday. “We’d rather act urgently and accept occasional minor drops in quality than move slowly and miss the opportunity. ” Towards the end of the memo, von Ahn outlined five key "constructive constraints" Duolingo will implement: - Gradually phasing out contractors doing work AI can handle - Incorporating AI usage as a hiring criterion - Including AI utilization in employee performance reviews - Granting headcount only if a team cannot automate more work - Launching specific initiatives across most functions to fundamentally change workflows Replacing manual work with AI initiatives is not new for Duolingo. Earlier this year, in 2024, the company cut 10% of its contract workforce as it ramped up using AI to produce content, following similar AI-related layoffs in 2023. Von Ahn emphasized in the memo that the AI expansion won’t replace full-time staff with technology. “Without AI, scaling our content to more learners would take decades. We owe it to our learners to deliver content as soon as possible, ” he wrote. Last year, Duolingo showcased its AI adoption by starting an earnings call with Lily, an AI chatbot modeled after a purple-haired app character. “Over time, she’s going to do more of my job, and I can just retire, ” the CEO joked then. Duolingo’s stock has increased 68% over the past year, partly fueled by growth in its paid premium tiers.
The company is also branching out from language learning, experimenting with chess and introducing music courses. Its first-quarter earnings report is expected this Thursday. Von Ahn joins a growing list of tech leaders declaring that AI use is now essential. Earlier this month, Uber’s CEO Dara Khosrowshahi said too few employees know how to use AI and announced new training programs. He stated that mastering AI coding agents will be “an absolute necessity at Uber within a year. ” Similarly, Shopify’s CEO Tobias Lütke shared a memo on social media this month, asserting that AI use is “now a fundamental expectation for everyone at Shopify” and teams must prove why AI cannot achieve their goals before requesting additional headcount. Von Ahn’s recent memo echoed Lütke’s message. LinkedIn cofounder Reid Hoffman praised Lütke’s post, urging leaders in startups or large firms alike to embed AI into their operations and regularly assess progress on AI learning.
Brief news summary
Duolingo's CEO Luis von Ahn has announced an "AI-first" strategy, emphasizing rapid adoption of AI despite potential minor quality issues. In a memo to employees, he outlined key measures: phasing out contractors for tasks AI can handle, incorporating AI proficiency into hiring and performance reviews, limiting headcount growth unless automation is insufficient, and implementing AI-driven transformations across teams. The company has already reduced contract workers, using AI to generate content, but assures full-time roles won’t be replaced. Von Ahn stressed AI’s necessity for scaling content and speeding up delivery to learners. Duolingo, whose stock has risen 68% in a year, is also experimenting with courses beyond languages. This move mirrors broader tech trends, as leaders from Uber and Shopify declare AI competence a vital expectation and integrate AI into workflows and staffing decisions, signaling AI’s critical role in future business operations.
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