Duolingo and the AI Jobs Crisis: What's Happening?

Duolingo's Shift to AI and the Emerging Jobs Crisis

This week, Duolingo revealed its intention to integrate AI more fully into its operations, specifically by substituting contractors with artificial intelligence. This transition, as highlighted by journalist Brian Merchant, signals a potentially significant moment in the unfolding AI jobs crisis.

Previous Contractor Reductions

According to Merchant’s reporting, the replacement of human workers with AI at Duolingo isn't a recent development. Approximately 10% of the company’s contractor base was reduced at the close of 2023.

Further workforce adjustments occurred in October 2024, with AI systems taking over roles previously held by contractors – initially translators, and subsequently, writers.

Impact on Entry-Level Employment

Reports in The Atlantic have indicated an unexpectedly high unemployment rate among recent college graduates. A possible contributing factor is the increasing adoption of AI by companies.

It is suggested that businesses may be substituting AI for entry-level white-collar positions, or that investment in AI is diverting funds away from new human hires.

The Root of the Crisis

Merchant argues that the current situation stems from deliberate managerial choices. Executives are actively seeking to reduce labor expenses and centralize authority within their organizations.

This is evidenced by a decline in opportunities within creative fields, reduced earnings for freelance professionals like artists and writers, and a general trend toward reduced hiring of human employees.

A Strategic Shift, Not a Robot Apocalypse

Merchant clarifies that the AI jobs crisis isn’t a futuristic scenario of robots taking over. He draws a parallel to the situation at DOGE, where a significant number of federal employees were let go under the guise of implementing an “AI-first strategy.”

The core issue, he contends, is a strategic prioritization of AI driven by cost-cutting measures and a desire for increased control.