Duolingo Inc is laying off some of its contractors while utilizing generative artificial intelligence to produce more content, indicating a shift towards AI tools for certain tasks typically performed by human workers. A company spokesperson stated on Jan 8 that approximately 10% of contractors were “offboarded” due to the reduced need for the type of work they were handling. The spokesperson also noted that part of the reduction in workforce could be attributed to the use of AI.
The company’s CEO, Luis von Ahn, declared in a letter to shareholders in November that Duolingo is using generative AI technology to generate new content more quickly, including scripts for language-teaching shows. Additionally, the company utilizes AI to create voices within the app and has introduced a premium tier called Duolingo Max, offering AI-generated feedback and conversations in other languages.
Following these developments, the company’s shares saw a 3.2% increase to US$210.65 in New York, after already tripling in 2023. According to the spokesperson, the reduction in workforce is not a direct substitution of workers with AI, as many full-time employees and contractors at Duolingo use AI technology in their work. The company had 600 full-time workers at the end of 2022, as per filings.
Recent heightened interest in generative AI has led to concerns from employee groups and unions about the potential impact on jobs. A report from the World Economic Forum released in April estimated that AI could lead to significant disruptions in the labor market over the next five years, although the overall impact may be positive as employers seek workers with more technical skills to navigate the use of this technology.
In response to these concerns, Microsoft Corp announced an alliance with the American Federation of Labor and Congress of Industrial Organizations last month to train people about AI and examine its implications on employment. At an event announcing the partnership, Microsoft President Brad Smith emphasized the need to enhance the way people work, acknowledging that while AI may accelerate and eliminate certain aspects of jobs, it is not a straight replacement for human workers.
Meanwhile, Chegg Inc, a provider of online homework-help services, disclosed in June its intention to reduce its workforce by 4% and integrate AI more effectively into its tutoring services as students embrace chatbots. Similarly, International Business Machines Corp CEO Arvind Krishna stated in May that the company expected to halt hiring for roles that could be replaced by AI technology within a few years, particularly in back-office functions like human resources.
As AI’s use continues to grow, it is clear that companies are exploring its potential to transform various aspects of their operations, with both positive and negative implications for workers and the labor market. – Bloomberg
