AI Translation Risks Put Spotlight on Duolingo’s Pricey Multiple
Duolingo’s strong stock market performance through May reflected a user base that was growing and enthusiastic.
Photographer: Gabby Jones/BloombergDuolingo Inc. is facing risks from multiple angles as investors reassess the impact of artificial intelligence on the mobile foreign language learning platform.
AI-powered live translation services are seen as a potential threat to its long-term growth, which explains the stock’s volatility last week after Apple Inc. detailed a similar feature to be included with its latest AirPods. At the same time, Duolingo has faced a backlash about its AI-first strategy, with some users criticizing Chief Executive Officer Luis von Ahn for considering replacing human contractors with AI.