Duolingo (NASDAQ: DUOL) has long been one of the most recognisable names in the edtech sector and is famed for its quirky owl mascot and gamified approach to language learning. But recently, the company has faced a growing wave of criticism, leading many to question whether its AI-first shift is behind the softening of its share price.
Is AI to Blame?
Duolingo’s move toward artificial intelligence hasn’t gone unnoticed and not always for the right reasons. In late 2023 and early 2024, the company let go of hundreds of contract writers and translators, replacing much of its lesson content generation with AI tools. The artificial language model introduced to Duolingo alienated users who valued the human-first approach that built Duolingo into what it is today.
While the core staff remained largely intact, many users and observers interpreted this as Duolingo “binning off” its human creators. The optics weren’t helped by the company scrubbing its social media channels and facing public backlash over content quality. It came as their CEO, Luis von Ahn, reaffirmed his intention to replace contract employees with artificial intelligence raising questions as to who produced the social media content; humans or AI? Or was this an attempt to stop the public from commenting on new posts expressing disapproval of the plans?
Share Price: What’s Going On?
Despite posting strong quarterly earnings, Duolingo’s share price has shown signs of softening, prompting questions about the underlying causes. On the surface, the company appears to be in good financial health. Recent reports highlighted a 38% year-on-year increase in revenue, alongside a growing base of paying subscribers now exceeding 10 million. Daily active users have surged to over 46 million, reflecting impressive engagement metrics that many other edtech platforms would envy. From a strictly financial perspective, these are the hallmarks of a company in growth mode.
However, the performance of Duolingo’s stock has not fully mirrored these achievements. Following an initial uptick on the back of strong earnings, the share price has dipped slightly, a movement that suggests investors are weighing more than just topline figures. The decline, while not dramatic, indicates a shift in sentiment that is likely influenced by wider concerns about the company’s recent strategic choices. The growing unease around the rollout of AI-generated content, the handling of community backlash, and the reduced visibility on social media are all contributing factors that appear to be affecting market confidence.
It is important to recognise that Duolingo’s appeal to investors has always rested on more than just revenue growth. The platform’s brand equity, user loyalty, and ability to maintain long streaks of daily engagement have historically underpinned its valuation. Anything that threatens to destabilise this foundation such as alienating users with unrefined AI content or dismantling the community elements that fuel retention carries with it potential financial repercussions. In this light, the recent dip in share price may not reflect immediate performance shortcomings, but rather a forward-looking concern about sustainability and strategic direction.
Analyst outlooks remain broadly optimistic, with several institutions maintaining “buy” ratings and citing Duolingo’s scalable model and margin potential. Yet the caution now present in the market underscores a deeper truth: in the tech and education sectors alike, perception can be just as influential as performance. Investors are increasingly sensitive to how technological shifts impact consumer behaviour, and Duolingo’s current trajectory has placed it at the heart of that tension. The question now is not whether Duolingo can continue to grow, but whether it can do so while preserving the qualities that made it valuable in the first place.
Community and Consumer Sentiment
Duolingo’s community has long been one of its greatest assets — a vibrant, global network of learners who didn’t just use the app, but actively identified with it. For many, Duolingo wasn’t simply a tool for learning Spanish or brushing up on French; it was a daily ritual, a game-like escape, and, importantly, a brand with personality. From Duo the owl’s cheeky push notifications to the in-app celebrations of long streaks, the platform felt alive. That sense of presence and human touch helped foster a unique bond between the app and its users — one that many traditional educational tools struggled to replicate.
However, recent changes have disrupted that bond. As Duolingo embraced AI-generated lessons and phased out many of the people behind its course content, users began to notice a shift in tone. Lessons felt flatter, less intuitive, and occasionally confusing or culturally tone-deaf. This wasn’t just a technical issue; it represented a departure from what had made Duolingo feel trustworthy and relatable. The growing perception that much of the content was being generated without human oversight sparked frustration, particularly among dedicated users with years of streaks invested in the platform.
This dissatisfaction has been compounded by Duolingo’s sudden retreat from its social media presence — a space where the brand had cultivated a witty, irreverent, and highly engaging voice. The decision to wipe or significantly scale back content on platforms like TikTok and Instagram sent the wrong message at precisely the wrong time. In the absence of transparency, users were left to speculate, fuelling narratives of corporate detachment and a loss of direction. Many felt as though they were no longer part of a community, but simply data points in an algorithm-driven ecosystem.
The result has been a noticeable dip in goodwill. While some users have chosen to quietly disengage, others have taken to forums, review sites, and social media to voice their disappointment. Comments range from concerns over the declining quality of lessons to more emotional responses about feeling abandoned or unappreciated. For a brand that once prided itself on fun and accessibility, this shift in tone has been jarring. It speaks to a deeper truth in consumer behaviour: that loyalty is not just earned through functionality, but through emotional resonance. And when that resonance is lost, even the most successful platforms can find themselves vulnerable.
The Human vs. AI Trade-off
Duolingo’s shift toward an AI-first strategy has marked a significant turning point for the company, not only operationally but also in how it is perceived by its users and investors. While this move has introduced clear efficiencies, it has also sparked widespread concern over the erosion of the brand’s identity and its connection with the user community. Language learning, at its core, is a deeply human pursuit — one that relies on nuance, cultural context, and emotional engagement. As Duolingo leans further into automation, it runs the risk of losing the very qualities that made it one of the most beloved educational platforms in the world.
From a business perspective, the advantages of adopting AI are clear. Automated content generation allows Duolingo to produce lessons faster and at a significantly lower cost than through traditional methods. This scalability enables the company to expand into more languages, including those with limited commercial demand, and to maintain consistent updates across all courses. Such efficiency supports a more predictable and lean operating model, which is attractive to investors and aligns well with the high-growth expectations of a publicly traded tech firm. In theory, the more AI does the heavy lifting, the better the margins and the faster the company can grow its user base without a corresponding increase in headcount.
However, the impact on the user experience tells a different story. Many of Duolingo’s long-time users have expressed frustration with the quality of AI-generated lessons. Translations have become less reliable, explanations less clear, and the overall tone more robotic. In languages where cultural and contextual subtleties are crucial, the loss of human oversight is particularly apparent. Learners have reported that content often feels awkward or unnatural, with mistakes that a native speaker would never make. These issues have undermined trust in the platform, especially among serious learners who value accuracy and depth over speed.
More damaging than the technical shortcomings is the emotional disconnect many users now feel. Duolingo’s success was never just about the mechanics of learning; it was about the experience. The company cultivated a sense of playfulness and personal connection through witty notifications, engaging characters, and a community-driven approach to education. The decision to let go of many of its human content creators and the subsequent reduction in community engagement, including the wiping of social media content, has left users feeling as though something vital has been lost. The app once felt like a companion in the learning journey; now, to many, it feels more like a machine dispensing tasks.
This shift in tone and engagement has broader implications for the brand. Duolingo has always stood apart in the edtech space because it managed to combine educational rigour with personality. The owl mascot, quirky humour and the streak culture contributed to a brand identity that was human, memorable, and emotionally resonant. By sidelining the very people who created that culture, the company risks becoming another sterile platform, indistinguishable from countless other AI-driven tools. For users who came to Duolingo not just to memorise vocabulary, but to feel part of something, that change is more than cosmetic, it’s fundamental to the brand’s success.
From an investor’s point of view, the trade-off between operational efficiency and brand strength is a delicate one. While recent financial results have remained solid, with strong user growth and healthy revenue, there is growing unease about the long-term impact of alienating the user base. Shareholders understand that user retention is key to subscription growth, and any significant decline in engagement or satisfaction could have a compounding effect on revenue over time. In a space as competitive as language learning, where free and paid alternatives abound, brand loyalty is everything.
Ultimately, Duolingo’s embrace of AI may offer short-term gains, but the long-term success of the platform will depend on its ability to balance automation with authenticity. Language learning is not just about input and output; it’s about connection. If Duolingo forgets that, it may find that no matter how fast or cheaply it can generate lessons, the users who once adored the brand will begin to look elsewhere.
What Needs to Happen Next?
To secure its future and restore confidence among both users and investors, Duolingo must take deliberate steps to realign its AI strategy with the emotional and educational needs of its community. The company does not need to abandon artificial intelligence entirely because the efficiencies it offers are too significant to ignore but it must reintroduce the human element that defined its brand and made it a household name in edtech. The key lies in finding a thoughtful balance between automation and authenticity, ensuring that technological progress does not come at the expense of user trust or learning quality.
First, Duolingo must revisit the role of human expertise within its content creation process. While AI can accelerate the production of lessons, it lacks the cultural awareness and nuanced understanding of language that native speakers and professional linguists provide. Reintegrating human oversight, even in a hybrid editorial capacity, would not only improve content quality but also restore a layer of accountability that many users feel has been lost. Lessons should be reviewed and refined by people who understand the intricacies of language and pedagogy, not just algorithms optimised for speed.
Second, the company needs to re-establish a meaningful presence in its social channels and community platforms. Social media was once one of Duolingo’s greatest assets, helping to build a loyal following through humour, relatability, and genuine interaction. The decision to wipe or scale back these channels during the recent backlash has only deepened the sense of detachment among users. Instead of retreating, Duolingo should use these platforms to engage in transparent dialogue, acknowledge user concerns, and showcase the human stories behind its technology. Rebuilding this bridge will be essential to winning back hearts as well as minds.
In tandem with improving content quality and community engagement, Duolingo should also focus on elevating the learner experience in ways that complement, rather than replace, human connection. This could include features such as live tutoring, peer language exchange, or moderated discussion forums; these tools that give learners the opportunity to interact in real, meaningful ways. If AI is to remain a core part of the platform, it should act as an assistant or accelerator, not a substitute for social learning. Providing options for human touchpoints within the user journey would cater to a broader range of learning styles and reinforce the brand’s commitment to genuine language acquisition.
Finally, Duolingo needs to communicate a clearer vision for the role of AI in its future. The current backlash is as much about perception as it is about performance. Users and investors alike want reassurance that the company understands the limitations of AI and values the role of human connection in education. By publicly outlining a balanced strategy that combines technological innovation with a respect for language, culture, and community, Duolingo can demonstrate leadership in a space where many are still grappling with the implications of automation.
In short, Duolingo’s challenge now is not just technical, but cultural. It must remember that language learning is fundamentally a human act that’s built on empathy, shared meaning, and the desire to connect. If the company can harness AI to support those goals rather than undermine them, it stands not only to recover lost goodwill but to lead the next chapter of edtech with integrity and insight.
Duolingo stands at a crossroads. Its pivot to an AI-first strategy reflects the broader trajectory of the tech industry, where efficiency, scale, and automation dominate boardroom thinking. On paper, the move makes perfect sense: faster content production, lower costs, and the ability to rapidly expand into new markets. But the real test for Duolingo lies beyond spreadsheets and shareholder reports. It sits in the hearts and minds of its users who make up millions of learners that didn’t fall in love with an algorithm, but with a brand that made learning feel personal, playful, and, most importantly, human.
There is no denying that artificial intelligence has a role to play in the future of education. It offers speed, adaptability, and reach that no traditional system could ever match. Yet, as Duolingo is learning, education is not simply a transaction of information. It is a process of emotional and intellectual connection. The danger in pushing AI too far, too quickly, is not just that the content may suffer, but that the users begin to feel as though they no longer matter and that their learning journey is being managed by a faceless machine rather than supported by a thoughtful guide.
This is not an unsolvable problem. In fact, Duolingo is uniquely positioned to lead the way in defining what a balanced, human-centred AI model could look like. It has the brand recognition, the user base, and the financial runway to course-correct and win back trust. What it needs now is to acknowledge that the humour, the warmth, the sense of being part of something that cannot be automated is what their users really value. It must be curated, protected, and nurtured by people who understand that learning is a human endeavour.
The coming months will be critical for Duolingo. If Duolingo listens to its users, rebuilds its community, and demonstrates a commitment to responsible innovation, it can turn recent criticisms into an opportunity for leadership and growth and market sentiment will likely improve. If it doesn’t, it risks becoming another cautionary tale of a tech company that forgot why people showed up in the first place. The tools may be digital, but the connection must remain human. In language learning, as in business, that’s the difference between being understood — and simply being heard.
📚 Sources:
- Duolingo users are in turmoil over the app’s AI lessons – Polygon
- AI backlash highlights corporate risks – Business Insider
- Duolingo Speaks A Language Investors Can Understand – Investor’s Business Daily