Duolingo Cuts Contractors as It Implements Company-Wide ‘AI-First’ Strategy

Duolingo is reducing its contract workforce, shifting tasks previously handled by people to artificial intelligence systems. This move aligns with a new, company-wide “AI-first” strategy communicated internally, which mandates broad AI adoption across the company’s operations and product development, aiming to boost productivity and embed AI throughout its language-learning platform. Details of an internal note were later shared by CEO Luis von Ahn via X.

The internal communication frames the shift as fundamental, designating AI as the “default starting point” for work. It suggests traditional software coding “will likely become a smaller part of our jobs” as staff operate at a “higher level of abstraction” to build products more quickly.

The plan involves embedding “AI will be everywhere in our product,” expanding beyond existing AI-generated content like its AI Bot Video Call feature.

The AI Mandate Inside Duolingo

The AI-first directive introduces specific operational changes for Duolingo employees, referred to internally as “Duos”. Staff are now expected to “Start with AI for every task,” using relevant tools first even if initially less efficient, which the company views as essential for skill building. A notable policy mandates dedicating “10% of your time learning” about AI, justified by the rationale: “We’re okay slowing down short-term to invest in long-term leverage.” Collaboration is encouraged through sharing prompts, results, and experiences.

Further guidelines direct employees to “Avoid overbuilding” by utilizing third-party AI tools where practical and to “Build and experiment (carefully),” using APIs but protecting company data. Despite the push towards automation, Duolingo emphasizes that “Technical excellence still matters—more than ever,” noting AI tools do not “excuse sloppy thinking.” To aid this transition, an internal AI Advisory Board composed of engineering leaders will offer guidance, recommend models, and provide feedback channels.

CEO Rationale and Company Constraints

In his public message, CEO Luis von Ahn sought to reassure full-time staff, stating, “This isn’t about replacing Duos with AI. It’s about removing bottlenecks so we can do more with the outstanding Duos we already have.”

He framed the strategy as vital for scaling language education: “To teach well, we need to create a massive amount of content, and doing that manually doesn’t scale.” This perspective aligns with comments made in an October 2024 Forbes Australia interview, where he affirmed the company’s stance is “if we can automate something, we will,” referencing the automation of “pretty rote stuff” handled by previously dismissed contractors.

The company also reportedly introduced so-called “constructive constraints,” factoring AI utilization into performance evaluations and hiring decisions. Approval for new headcount now apparently requires justification that automation possibilities have been thoroughly explored.

Historical Context and Previous Workforce Reductions

This workforce adjustment follows earlier reductions. In January 2024, Duolingo “offboarded” about 10% of its contractors. While initially downplaying AI’s role, a spokesperson later confirmed to media outlets that “AI is contributing to the reduction,” though not the sole cause. This history adds context to the current, more formalized AI-first strategy.

Duolingo has integrated AI for some time, using models like “Birdbrain” for exercise personalization and adopting LLMs like OpenAI’s GPT-4 for its premium Duolingo Max tier features launched in March 2023.

Industry Context and Lingering Questions

Duolingo’s strategic direction places it alongside other tech companies, such as Shopify and Klarna, that have implemented similar “AI-first” policies requiring justification for roles not heavily utilizing automation. However, the heavy reliance on AI for educational content has drawn mixed reactions.

Skepticism remains regarding AI’s current ability to replicate the subtleties needed for effective language instruction, especially given Duolingo’s reputation among some users as being more effective for introductory learning than achieving advanced fluency. While the company aims for faster scaling and efficiency, the long-term impact on learning outcomes and user satisfaction from replacing human-generated or human-refined content with AI remains to be seen, representing a considerable test for the AI-first approach in education technology.

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