In the crowded landscape of digital education, Duolingo Inc. is betting on artificial intelligence to drive growth, streamline operations, and expand into new educational frontiers—even as it contemplates new ways to navigate around Apple’s lucrative in-app payment system.

The Pittsburgh-based language learning company this week raised its full-year outlook for both sales and profits, citing surging demand for its AI-powered features, including automated content creation and a new video call tool that allows users to practice conversation with animated characters.

“Our investments in AI are paying off,” Duolingo co-founder and Chief Executive Luis von Ahn said in a Bloomberg Open Interest interview. “We’re spending significantly on R&D, hiring talent to develop new features like our video call functionality, and multiplying the speed at which we can generate high-quality educational content.”

AI at the Core

Von Ahn, a Guatemala native and Carnegie Mellon computer scientist known for co-creating CAPTCHA, positions Duolingo not just as an app, but as a technology platform making previously impossible learning experiences a reality. Whereas previous course expansion required teams of contract-based human writers and reviewers, “generating all of the content can be done a lot faster now with AI,” von Ahn noted. “That allows us to have way more courses, each with more depth, and serve more users globally.”

This expansion includes the recent rollout of 148 new courses, a feat that would have been unfathomably slow using traditional human-driven processes. The technology isn’t just about automating lesson writing, but transforming the user experience—from adaptive difficulty to simulated conversation partners.

Managing Fears and Workforce

Recent reports on social media platforms such as TikTok raised questions about the impact of AI on contractors and full-time staff. Von Ahn addressed the growing workforce anxiety directly, emphasizing that Duolingo’s use of AI is reshaping the types of roles needed—but not at the expense of its core employee base.

“We’re not reducing our workforce,” von Ahn said. “If a job can be done by AI, and done exceptionally well, we probably won’t hire a contractor for that role. But for our full-time employees, there is no change. In fact, we want them focused on creative, high-value tasks—not repetitive ones.”

He argued the company’s investment in AI has opened new opportunities, and that increased efficiency in operations would allow for further growth and innovation.

Apple’s 30% Question

Even as Duolingo doubles down on technology-led efficiency, it is closely watching shifts in the app marketplace. The recent legal ruling allowing third-party payment options in iOS apps could have major implications for companies like Duolingo, which have thus far relied on Apple and Google’s in-app purchase systems.

“Overwhelmingly, our customers currently pay through the app stores,” von Ahn said. “With the new ruling, we have the potential to allow payment via a webview inside our app, bypassing Apple’s system—and saving significantly on margins. Right now, Apple takes 30% of the first year’s subscription. If we switch to web payments, that’s no longer the case.”

While von Ahn stressed Duolingo will test and evaluate these options, the prospect of millions in annual cost savings looms large, stirring interest across the app-based economy.

Beyond Languages: Chess, Math, and Music

Duolingo’s ambitions extend well beyond languages. The company has rolled out new apps and lessons in math and music, and is now poised to add a surprising subject: chess.

“We’re not seeing chess as just a game,” von Ahn explained. “Learning chess helps with logic and critical thinking. Hundreds of millions of people want to learn it, so we’re launching beginner to intermediate chess training directly in our iPhone app in the coming days.”

While chess is traditionally categorized as a game, von Ahn said Duolingo intends to stick with educational subjects that require significant study—rather than entering the broader gaming sphere. “At the moment, we don’t have serious plans for other subjects after chess. Our focus is on deepening the areas we have—language, math, music, and now chess.”

Does Duolingo Actually Work?

Asked whether language apps can truly replace classroom experience or full immersion, von Ahn demurred. “What really matters is time on task. If you spend the required amount of hours practicing a language, you absolutely can learn it with Duolingo,” he said, noting peer-reviewed academic studies support the claim.

But he cautioned, “There are a lot of misconceptions about how long it takes. To learn Spanish to a good level, you need 500 hours. Chinese? About 2,000. Our job is to keep users motivated to spend that time.”

As Duolingo’s AI-driven model reshapes the industry’s calculus on scale, cost, and educational efficacy, the company is pressing its advantage—with human ingenuity and artificial intelligence working in tandem. Whether sidestepping Apple’s cut or bringing chess to smartphone learners, von Ahn’s ambitions for Duolingo suggest an education company evolving as quickly as the technology it embraces.