Duolingo Inc., renowned for its language-learning software, has opted for generative artificial intelligence to streamline content creation, leading to a reduction in its contractor workforce, hinting at a trend where companies leverage AI for tasks traditionally handled by human workers.
This shift to generative AI signals a new wave of automation in language learning amid concerns over the impact of the evolving technology on jobs.
A company spokesperson quoted by Bloomberg confirmed that approximately 10% of contractors have been “offboarded,” citing a shift in the nature of required tasks due to the integration of AI technologies. “We no longer require as many individuals for certain tasks, partly due to the efficiency brought in by AI,” the spokesperson stated.
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CEO Luis von Ahn previously outlined in a shareholder letter in November the company’s utilization of generative AI. This technology enables the rapid creation of text, speech, and images, significantly expediting the production of content, including scripts for language-teaching shows. Duolingo has integrated AI-generated voices into its application and introduced Duolingo Max, a premium tier offering AI-generated feedback and multilingual conversations.
Following this revelation, Duolingo’s shares surged by 3.2% to $210.65 in New York, marking continued investor confidence after a remarkable tripling in value throughout 2023.
The spokesperson clarified that the reduction in workforce is not merely a replacement of human workers with AI. Many full-time employees and contractors at Duolingo actively employ AI technologies in their respective roles. At the close of 2022, Duolingo boasted 600 full-time employees, as per company filings, and the spokesperson assured that no full-time employees were impacted by the recent cutbacks.
The growing interest in generative AI has prompted concerns among employee groups and unions regarding potential workforce reductions. A World Economic Forum report forecasted significant labor-market disruptions within the next five years due to AI adoption, albeit with a potentially positive net impact as employers seek individuals equipped with technical skills to navigate AI.
Responding to these concerns, Microsoft Corp. formed an alliance with the American Federation of Labor and Congress of Industrial Organizations to address AI’s impact on employment. Microsoft President Brad Smith emphasized the need to enhance workforce capabilities and acknowledged the potential for AI to accelerate certain aspects of job roles.
Other tech firms, including Chegg Inc. and International Business Machines Corp. (IBM), have also made moves in this direction. Chegg Inc. announced a 4% reduction in its workforce, focusing on integrating AI into tutoring services. IBM’s CEO, Arvind Krishna, highlighted the intention to pause hiring for roles potentially replaceable by AI and estimated that 30% of back-office jobs could be automated within five years using AI tools.
Popular language learning app Duolingo has cut about 10% of its contractors as part of its shift towards heavier reliance on artificial intelligence. The Pittsburgh-based company said it will start using AI more often to create content, but that humans will still check AI-produced work. It’s not Duolingo’s first dip into AI waters; back in March, it added an AI-powered subscription tier that allows users to have full conversations with a chatbot. The company said it has more than 24 million daily active users and 5.8 million paid subscribers. More than a third of companies said AI replaced workers last year, and 44% said the technology will cause layoffs in 2024, per a recent survey cited by CNN. (LinkedIn News)