Duolingo to bet on generative AI subscription plan (2024)

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Summary MINT SPECIALS FAQs

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Duolingo to bet on generative AI subscription plan (13)

Sabela Ojea , The Wall Street Journal 1 min read 10 May 2024, 01:10 PM IST

Duolingo to bet on generative AI subscription plan (15)

Summary

Duolingo says its investment in artificial intelligence is paying off after the language-learning app posted a 54% surge from last year in first-quarter paid subscribers to 7.4 million.

Duolingo says its investment in artificial intelligence is paying off after the language-learning app posted a 54% surge from last year in first-quarter paid subscribers to 7.4 million.

The company, which reported a 45% increase in first-quarter revenue to $167.6 million, said generative AI has accelerated its subscription growth and enabled faster content creation. The technology has enabled the company to boost its outlook while other online learning companies report sales declines for the quarter.

“What we’re seeing is that people are willing to pay even more to learn a language through Generative AI," Finance Chief Matt Skaruppa said in an interview on Thursday.

Duolingo aims to create a human-like tutor experience as it looks to boost AI-monetization efforts around expanding its family subscription plan and Duolingo Max plan, Skaruppa said. The company will be experimenting further with prices for its Duolingo Max plan, currently priced at $29.99 a month or $167.99 annually in the U.S., and to make it available in other geographies. Meanwhile, Duolingo plans to improve the family plan with smoother invites to the app and more engaging social features.

Generative AI has sped up content development exponentially, cutting some projects down from five years to three months, Chief Executive Luis von Ahn said on the company’s earnings call.

Developed with OpenAI’s GPT-4 technology, Duolingo Max is currently only available in six countries for Spanish- and French-language learners. The company plans to add more languages in the future, including English, the most popular language to learn.

“We are growing users very quickly with very low acquisition costs, since most of our growth comes from word of mouth," Skaruppa said. “The hardest thing is to keep users engaged when learning a language, making sure that they come back to the app every day."

For now, there seems to be enough content to keep learners engaged: During the quarter, daily active users rose to 31.4 million.

The number of Max subscribers is comparatively small, but the company is optimistic as it includes more Generative AI features that go beyond conversation.

The company on Wednesday raised its revenue outlook for the second quarter to between $175 million and $177.5 million. Analysts expected $176.9 million. Learning technology companies including Coursera and Chegg recently offered more cautious guidance, citing a challenging online learning outlook.

Write to Sabela Ojea at sabela.ojea@wsj.com

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MINT SPECIALS

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Duolingo to bet on generative AI subscription plan (2024)

FAQs

How is Duolingo using Generative AI? ›

Duolingo has already used machine learning for years, having introduced its AI model Birdbrain in 2020 to adjust the difficulty of exercises based on users' strengths and weaknesses. However, up until 2023, "every single exercise chosen by Birdbrain was written, reviewed, edited, and translated by human experts."

Did Duolingo fire staff for AI? ›

Duolingo has fired human translators in favour of using AI, as part of a shift to artificial intelligence that began in earnest almost a year ago. The company behind the most famous language learning app has laid off 10% of its contractors, according to a Bloomberg report.

Is Duolingo replacing workers with AI? ›

Language learning app Duolingo has cut 10pc of its translators as it replaces them with artificial intelligence (AI).

How much does Duolingo AI cost? ›

Part 3: How Much Does Duolingo AI Cost? Duolingo Max currently offers two different plans: an Individual Plan and a Family Plan. The Individual Plan of Duolingo Max currently costs $168 a year, but only if you pay for the entire year upfront. If you'd like to pay every month, Duolingo Max costs $29.99 per month.

What is the downside of generative AI? ›

Known Limitations Of Generative AI

Large language models (LLMs) are prone to "hallucinations" - generating fictitious information, presented as factual or accurate. This can include citations, publications, biographical information, and other information commonly used in research and academic papers.

Did Duolingo change in 2024? ›

In July 2023, Duolingo launched a feature using the iOS widget feature. In January 2024, after having laid off around ten percent of its contractors, Duolingo began using artificial intelligence (AI) to replace tasks usually done by its contractors. In March 2024, the widget feature was also on Android.

Is Duolingo checked by AI? ›

At Duolingo, our approach to online proctoring marries human expertise with AI's power. Unlike traditional in-person proctoring, where someone supervises an exam in person, online proctoring employs advanced technology, including AI, to monitor test takers remotely.

Is Babbel or Duolingo better? ›

Approach to learning

The biggest difference between Babbel and Duolingo is the approach to language learning. Babbel is a better option if you want traditional language instructions through modules and lessons. By contrast, Duolingo works great if you need a playful, gamified experience.

Is Duolingo going to stop? ›

Duolingo Classes will wind down and retire on January 18th, 2023. This means hosts and learners will no longer be able to host or attend classes, and the Classes website will not be accessible. We are very grateful to our learners and hosts who have joined us on this journey.

Why is Duolingo changing so much? ›

Why are courses updated? There is no such thing as a “finished” language course. So at Duolingo, we're always working to make our courses better! If you've gotten an update, it's because we're excited to share the latest changes to the existing course.

Is there any app better than Duolingo? ›

The best overall Duolingo alternative is Rosetta Stone. Other similar apps like Duolingo are Busuu, Lingvist, Mango Languages, and Babbel for Business. Duolingo alternatives can be found in Language Learning Software.

How much is Super Duolingo 2024? ›

Duolingo Free vs Super vs Super Family
Duolingo FreeDuolingo SuperDuolingo Super Family
FreeFrom $6.99/monthFrom $9.99/month
Ad-basedAd-freeAd-free
No offline accessOffline language learningOffline language learning
Limited exercise tries (hearts)Unlimited exercise tries (hearts)Unlimited exercise tries (hearts)
2 more rows
Jan 18, 2024

Is paid Duolingo worth it? ›

All things considered, if you're an enthusiastic, devoted language learner like me, Super Duolingo is well worth the price. If you don't mind watching ads and aren't obsessed with your streak, however, continuing to use the free version is probably just fine.

Is it worth paying for Super Duolingo? ›

You might consider paying for Super Duolingo if you love Duolingo and want to support the people making it or if you primarily use the mobile app rather than the web app. The web app and mobile app are nearly identical except for one big difference: hearts. In the Duolingo mobile app, you start with five hearts.

Does Duolingo use GPT-4? ›

Duolingo turned to OpenAI's GPT-4 to advance the product with two new features: Role Play, an AI conversation partner, and Explain my Answer, which breaks down the rules when you make a mistake, in a new subscription tier called Duolingo Max.

Does Duolingo use OpenAI? ›

Yes! At Duolingo, our curriculum experts and designers are well-versed at working with AI-generated content to create fun and effective lessons. These new features are no different! Humans write the scenarios that learners see in Roleplay—they make sure the initial prompt (Talk about a vacation!

How Duolingo uses AI in every part of its app? ›

We create personalized educational experiences

AI helps us analyze user responses in order to identify common grammar mistakes and make corrections and suggestions, and analyze the sounds and patterns of your speech, so we can provide targeted feedback on your pronunciation.

How are people using generative AI? ›

Generative AI algorithms can be used to create new, original content, such as images, videos, and text, that's indistinguishable from content created by humans. This can be useful for applications such as entertainment, advertising, and creative arts.

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