Among the stocks that fell in the wake of Chegg's announcement about the challenge from ChatGPT was Duolingo (DUOL -4.26%), the popular language-learning app. It rebounded and moved higher after that, but in 2025, it cooled off on concerns about slowing user growth, though revenue rose 41% in Q2.
Investors feared that Duolingo users could stop paying for its services and instead just use free AI tools like ChatGPT. However, Duolingo has already integrated some of ChatGPT's features into its product and incorporated other AI tools.
For example, in March 2023, the company launched Duolingo Max, which uses GPT-4 technology to add two new features to Duolingo Super. Those features explain wrong answers to users and offer a role-playing feature that allows users to practice conversations in different scenarios.
In early 2024, the company cut contract workers since it plans to use AI to create more lessons, and it also introduced a generative AI subscription plan. Additionally, it has launched a feature called "video call" with an AI character and a game-based experience called "Adventures."
As AI adoption increases, the opportunities for AI language learning are likely to expand.