Duolingo CEO Expresses Astonishment That People Were Mad When He Bragged About Replacing Workers With AI
Duolingo CEO Luis von Ahn is having major regrets after widely bragging about replacing human workers with AI.
Earlier this year, von Ahn boasted that the language learning app company would "gradually stop using contractors to do work that AI can handle."
At the time, the CEO said that "we can't wait until the technology is 100 percent perfect," enthusing that "we'd rather move with urgency and take occasional small hits on quality than move slowly and miss the moment."
His enthusiasm for the tech was followed by a massive outpouring of criticism. Furious users on TikTok announced they'd be deleting the app en masse, their multi-year "streak" of daily use be damned.
Bafflingly, the simmering anti-AI sentiment apparently caught von Ahn by surprise.
"I did not expect the amount of blowback," he admitted in an new interview with the Financial Times, arguing that social media users had mischaracterized the changes as though "Duolingo has no employees, we have fired everyone and everything is being controlled by a massive AI."
Of course, if AI were advanced enough to do that, his prior remarks suggest that he absolutely would. Tech companies have embraced AI tech at all costs, driven by massive hype surrounding the tech — and consumers are quickly growing wary and frustrated.
The race to replace human workers with tech hasn't sat well with many, establishing an entire anti-AI movement. Consumers have bristled at companies stuffing AI into virtually every aspect of their digital lives. To many, it's a race to the bottom, with AI automation undermining their livelihoods in exchange for dubious advancements in actual technical capabilities.
But despite plenty of warning signs, von Ahn, a Silicon Valley mainstay whose net worth is just shy of $2 billion, says he didn't foresee the fallout.
Last month, von Ahn went into damage control mode, telling Fortune that "I do not see AI as replacing what our employees do" and walking back his earlier promises of using AI instead of contractors.
"I see it as a tool to accelerate what we do, at the same or better level of quality," he added at the time. "And the sooner we learn how to use it, and use it responsibly, the better off we will be in the long run."
This week, he told the FT that there will be a "very small number of hourly contractors who are doing repetitive tasks that we no longer need."
"Many of these people are probably going to be offered contractor jobs for other stuff," he added in an apparent attempt to extinguish the flames.
According to von Ahn, AI isn't going anywhere, blowback or not — an unsurprising stance given his immense vested interest.
To the CEO, a "Black Mirror"-style dystopia where users get sucked into spending a "significant amount of time socially talking to AI" is "just inevitable," he told the FT.
More on Duolingo: Duolingo Announces Plans to Replace as Many Human Workers as Possible With AI
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Yahoo
2 hours ago
- Yahoo
CEO Sebastian Siemiatkowski's blunt truths about Klarna's AI-first future
'Sorry if I'm being blunt,' says Sebastian Siemiatkowski as he explains why he delegated Klarna's last financial results announcement to an AI-generated version of himself. But 'I have yet to meet a CEO that's excited about the quarterly earnings reports and calls with investors.' The Swedish payments company's co-founder and CEO doesn't fear his avatar replacing him any time soon, but says even executives may yet find themselves in the robots' path, as 'it is definitely easier to replace the CEO than it is to replace a nurse.' Bluntness comes easily to Siemiatkowski, particularly when he's explaining how artificial intelligence threatens employment in his own business and beyond. Siemiatkowski is a pioneer of the $560 billion 'buy-now-pay-later' industry. He now stands on the cusp of a New York listing that could value his creation at a reported $15 billion and validate his 20 years of proselytizing for its business model. He has also become a standard-bearer for the notion of 'AI-first' companies, after saying last year that the technology could replace 700 customer service agents. Klarna reduced staffing by 39% over two years to cut losses Siemiatkowski blames in part on his own overhiring. It is still shrinking by 10 to 15 people a week through natural attrition, he says, adding that he uses LinkedIn to track his fellow CEOs' headcount as a 'bullsh*t detector' of how serious they are about automating work. AI's disruptions to workforces could cause a recession, Siemiatkowski posited this week, but he thinks companies are not leveling with employees about that prospect. Some Silicon Valley CEOs reassure audiences that new jobs will replace the ones being lost, he says: 'And then I talk to them in private rooms and it's like, 'Oh my God, the jobs are gone'... I feel that is dishonest.' Several 'AI-first' executives have faced pushback, with Duolingo CEO Luis von Ahn having to reassure users that the language-learning app would still hire humans after a social media backlash. Siemiatkowski, too, has tempered his plans and is rehiring some flesh-and-blood customer service agents. 'Obviously, AI today can pretend to be empathetic and express emotions and stuff, but at the core, people crave human connection,' he says, predicting that offering a real person at the end of the line will become 'a VIP thing' for which customers pay a premium. Transparent, not top-down The risk of branding your company 'AI-first' is that staff hear 'employees second.' Siemiatkowski says Klarna has used savings from shrinking its payroll to increase compensation for the 3,422 employees it has retained. But he thinks managers are too often afraid to tell their people how much change they see coming. 'We think we're protecting them,' he says. 'But over time, you realize that it generally leads to bad outcomes and lack of trust. I've learned that it's better to be honest and transparent, and trust my employees to be grown-ups who can deal with complex, threatening information.' Siemiatkowski is a fan of Toyota's ethos of enlisting employees to improve processes, and Klarna has been gathering 200 staff at a time on video calls to ask where technology could eliminate inefficiencies. Managers are not imposing recommendations from on high, he says. 'The team members saw it themselves.' The process can leave dozens of employees out of a role at a time, he says, but normal churn means the company usually has other positions to fill. Klarna puts sidelined staff 'on the bench' to be able to fill jobs as people resign, he says, adding that 80% of them find a new position within days. The hands-on path to growth It's a misconception that executives can't scale up a company by being hands-on, Siemiatkowski says, pointing to in-the-details executives from Walmart's Sam Walton to Apple's Steve Jobs. 'The truth is that hands-on is the only thing that truly scales.' He has regulators and credit committees to worry about, he notes, 'but I can't let that eat the whole agenda. I need to have two or three days a week where I can go deeper in specific areas and accept that, maybe for a few months, this is where I'm going to spend more of my time.' That was the approach Siemiatkowski took early in the pandemic, when Klarna realized that it was at risk of ceding the US market to Afterpay, an Australian competitor. Unable to travel, he and his team began furiously tapping their networks — anyone from investors and employees to LinkedIn contacts — to arrange virtual meetings with US retailers. It soon concluded that 'nothing beats the CEO sales pitch.' Siemiatkowski made 1,000 sales calls to US retail executives in 2020. 'I would go to the office in the morning, do my job in Swedish [working hours], come back, eat dinner with the kids, and then log in,' he recalls. By the end of that year, Klarna had deals with roughly half of the country's 100 largest chains. It took until this year for him to secure an exclusive deal with Walmart, after giving it warrants over Klarna shares. The world's largest retailer is a great negotiator, he says, so 'any deal you make with them is going to be a tough deal.' A disrupter meets its skeptics From the start, Siemiatkowski was driven by an urge to disrupt the finance industry's incumbents. 'I dreamt, since I was a kid, about going after the banks,' he says. The debt collectors' letters he recalls his parents receiving fueled his 'crazy obsession,' he says. Regardless of personal grudges, he also saw that 'banks digitally sucked' 20 years ago, creating lucrative opportunities for new entrants. 'We weren't like, 'Oh, we're going to start this corporate social responsibility bank,'' he says: 'It was: 'We're going to make a lot of profit.'' Two decades later, Klarna has just reported a fourth consecutive quarter of profitability, albeit on an adjusted basis. But Siemiatkowski still routinely has to reassure commentators and authorities that Klarna's 'pay in four' model is not leading consumers to spend money they don't have. He blames some of that on the lobbying and messaging power of the industry he set out to disrupt. Klarna's core product generates lower profit margins than credit cards, he notes, 'so this model is threatening a very, very large profit pool of incumbents.' Klarna has yet to find a report on its industry that it thinks is entirely unbiased, he says. Last month, the Federal Reserve reported that late payments by BNPL borrowers had increased sharply in 2024. While the Trump administration has said it will not regulate industry members like credit card lenders, Democrats and UK regulators want more oversight. When Klarna struck a partnership deal with food delivery group DoorDash in March, journalists seized on the notion of consumers paying for pizzas in installments as evidence of BNPL lenders tempting customers to overextend in a fragile economy. 'It lends itself to amazing headlines and a lot of clicks,' Siemiatkowski says, but 'it has nothing to do with reality.' Klarna's average BNPL user has outstanding debt of under $100 and can think for themself, he says. He is not arguing for no regulation, he insists, saying: 'I love capitalism — as long as democracy puts some limits to its most shameless actions.' A country cousin crosses the Atlantic Klarna is a rare European startup to crack the US, and Siemiatkowski jokes that he feels like 'the cousin from the countryside' in Silicon Valley, even with venture capitalist Michael Moritz chairing his board. 'When I go to San Francisco, I always feel like I'm — 'Hello, I'm from Sweden!'' he says in an exaggerated accent. Building a global business from Stockholm has been hard, he says. 'We grew very successfully, but in a very small market, so the success in Sweden could never support the success in Germany. And the success in Germany could never support the success in the UK. And the UK couldn't support the US.' He sees Europe's higher tax rates on the kind of people who make enough money from one startup to invest in others as holding back future Klarnas. Entrepreneurs need early-stage backers, he notes. 'Who are these angel investors? Well, they are rich people. Where do you get rich people? Well, people who don't get taxed too much.' Sweden's prime minister, Ulf Kristersson, has been among those urging Europe to make its capital markets more competitive with New York. But Siemiatkowski seems unswayed. The US is Klarna's largest market, he says, and more than half of its investors are there. 'How are we Swedish?' he asks bluntly. 'Because I happen to live here?' A New York initial public offering would put Klarna head-to-head with Affirm, the payments rival led by PayPal alumnus Max Levchin. Affirm's stock has been on a wild ride this year, halving between mid-February and early April, then staging a strong enough rally to rise above January's level, in bouts of market volatility that have deterred many companies from listing. Siemiatkowski says he and Moritz decided early on that Klarna would have to be well-known — and profitable — in the US for it to list there. It met those conditions in 2023, he says: 'Now it's just a question of when you feel the market conditions are right.' Klarna has already weathered extreme swings in the private markets, with its valuation spiking as high as $46.5 billion before coming down to earth to $6.7 billion after a funding round. 'I've been very gifted to get a very rocky ride,' Siemiatkowski says, reasoning that he has learned from failure and is now enjoying applying those lessons. On one particularly frustrating day, he remembers jumping in his car, cranking up the volume to , by Queen and David Bowie, and realizing that he had chosen this challenge. 'If you're Zlatan [Ibrahimović], the biggest Swedish soccer player, you want to play in the Champions League finals,' he remarks. You may not win the finals, but you have to appreciate the experience regardless of the pressure, he says. 'I mean, this is what I signed up for, right?'
Yahoo
2 hours ago
- Yahoo
CEO Sebastian Siemiatkowski's blunt truths about Klarna's AI-first future
'Sorry if I'm being blunt,' says Sebastian Siemiatkowski as he explains why he delegated Klarna's last financial results announcement to an AI-generated version of himself. But 'I have yet to meet a CEO that's excited about the quarterly earnings reports and calls with investors.' The Swedish payments company's co-founder and CEO doesn't fear his avatar replacing him any time soon, but says even executives may yet find themselves in the robots' path, as 'it is definitely easier to replace the CEO than it is to replace a nurse.' Bluntness comes easily to Siemiatkowski, particularly when he's explaining how artificial intelligence threatens employment in his own business and beyond. Siemiatkowski is a pioneer of the $560 billion 'buy-now-pay-later' industry. He now stands on the cusp of a New York listing that could value his creation at a reported $15 billion and validate his 20 years of proselytizing for its business model. He has also become a standard-bearer for the notion of 'AI-first' companies, after saying last year that the technology could replace 700 customer service agents. Klarna reduced staffing by 39% over two years to cut losses Siemiatkowski blames in part on his own overhiring. It is still shrinking by 10 to 15 people a week through natural attrition, he says, adding that he uses LinkedIn to track his fellow CEOs' headcount as a 'bullsh*t detector' of how serious they are about automating work. AI's disruptions to workforces could cause a recession, Siemiatkowski posited this week, but he thinks companies are not leveling with employees about that prospect. Some Silicon Valley CEOs reassure audiences that new jobs will replace the ones being lost, he says: 'And then I talk to them in private rooms and it's like, 'Oh my God, the jobs are gone'... I feel that is dishonest.' Several 'AI-first' executives have faced pushback, with Duolingo CEO Luis von Ahn having to reassure users that the language-learning app would still hire humans after a social media backlash. Siemiatkowski, too, has tempered his plans and is rehiring some flesh-and-blood customer service agents. 'Obviously, AI today can pretend to be empathetic and express emotions and stuff, but at the core, people crave human connection,' he says, predicting that offering a real person at the end of the line will become 'a VIP thing' for which customers pay a premium. Transparent, not top-down The risk of branding your company 'AI-first' is that staff hear 'employees second.' Siemiatkowski says Klarna has used savings from shrinking its payroll to increase compensation for the 3,422 employees it has retained. But he thinks managers are too often afraid to tell their people how much change they see coming. 'We think we're protecting them,' he says. 'But over time, you realize that it generally leads to bad outcomes and lack of trust. I've learned that it's better to be honest and transparent, and trust my employees to be grown-ups who can deal with complex, threatening information.' Siemiatkowski is a fan of Toyota's ethos of enlisting employees to improve processes, and Klarna has been gathering 200 staff at a time on video calls to ask where technology could eliminate inefficiencies. Managers are not imposing recommendations from on high, he says. 'The team members saw it themselves.' The process can leave dozens of employees out of a role at a time, he says, but normal churn means the company usually has other positions to fill. Klarna puts sidelined staff 'on the bench' to be able to fill jobs as people resign, he says, adding that 80% of them find a new position within days. The hands-on path to growth It's a misconception that executives can't scale up a company by being hands-on, Siemiatkowski says, pointing to in-the-details executives from Walmart's Sam Walton to Apple's Steve Jobs. 'The truth is that hands-on is the only thing that truly scales.' He has regulators and credit committees to worry about, he notes, 'but I can't let that eat the whole agenda. I need to have two or three days a week where I can go deeper in specific areas and accept that, maybe for a few months, this is where I'm going to spend more of my time.' That was the approach Siemiatkowski took early in the pandemic, when Klarna realized that it was at risk of ceding the US market to Afterpay, an Australian competitor. Unable to travel, he and his team began furiously tapping their networks — anyone from investors and employees to LinkedIn contacts — to arrange virtual meetings with US retailers. It soon concluded that 'nothing beats the CEO sales pitch.' Siemiatkowski made 1,000 sales calls to US retail executives in 2020. 'I would go to the office in the morning, do my job in Swedish [working hours], come back, eat dinner with the kids, and then log in,' he recalls. By the end of that year, Klarna had deals with roughly half of the country's 100 largest chains. It took until this year for him to secure an exclusive deal with Walmart, after giving it warrants over Klarna shares. The world's largest retailer is a great negotiator, he says, so 'any deal you make with them is going to be a tough deal.' A disrupter meets its skeptics From the start, Siemiatkowski was driven by an urge to disrupt the finance industry's incumbents. 'I dreamt, since I was a kid, about going after the banks,' he says. The debt collectors' letters he recalls his parents receiving fueled his 'crazy obsession,' he says. Regardless of personal grudges, he also saw that 'banks digitally sucked' 20 years ago, creating lucrative opportunities for new entrants. 'We weren't like, 'Oh, we're going to start this corporate social responsibility bank,'' he says: 'It was: 'We're going to make a lot of profit.'' Two decades later, Klarna has just reported a fourth consecutive quarter of profitability, albeit on an adjusted basis. But Siemiatkowski still routinely has to reassure commentators and authorities that Klarna's 'pay in four' model is not leading consumers to spend money they don't have. He blames some of that on the lobbying and messaging power of the industry he set out to disrupt. Klarna's core product generates lower profit margins than credit cards, he notes, 'so this model is threatening a very, very large profit pool of incumbents.' Klarna has yet to find a report on its industry that it thinks is entirely unbiased, he says. Last month, the Federal Reserve reported that late payments by BNPL borrowers had increased sharply in 2024. While the Trump administration has said it will not regulate industry members like credit card lenders, Democrats and UK regulators want more oversight. When Klarna struck a partnership deal with food delivery group DoorDash in March, journalists seized on the notion of consumers paying for pizzas in installments as evidence of BNPL lenders tempting customers to overextend in a fragile economy. 'It lends itself to amazing headlines and a lot of clicks,' Siemiatkowski says, but 'it has nothing to do with reality.' Klarna's average BNPL user has outstanding debt of under $100 and can think for themself, he says. He is not arguing for no regulation, he insists, saying: 'I love capitalism — as long as democracy puts some limits to its most shameless actions.' A country cousin crosses the Atlantic Klarna is a rare European startup to crack the US, and Siemiatkowski jokes that he feels like 'the cousin from the countryside' in Silicon Valley, even with venture capitalist Michael Moritz chairing his board. 'When I go to San Francisco, I always feel like I'm — 'Hello, I'm from Sweden!'' he says in an exaggerated accent. Building a global business from Stockholm has been hard, he says. 'We grew very successfully, but in a very small market, so the success in Sweden could never support the success in Germany. And the success in Germany could never support the success in the UK. And the UK couldn't support the US.' He sees Europe's higher tax rates on the kind of people who make enough money from one startup to invest in others as holding back future Klarnas. Entrepreneurs need early-stage backers, he notes. 'Who are these angel investors? Well, they are rich people. Where do you get rich people? Well, people who don't get taxed too much.' Sweden's prime minister, Ulf Kristersson, has been among those urging Europe to make its capital markets more competitive with New York. But Siemiatkowski seems unswayed. The US is Klarna's largest market, he says, and more than half of its investors are there. 'How are we Swedish?' he asks bluntly. 'Because I happen to live here?' A New York initial public offering would put Klarna head-to-head with Affirm, the payments rival led by PayPal alumnus Max Levchin. Affirm's stock has been on a wild ride this year, halving between mid-February and early April, then staging a strong enough rally to rise above January's level, in bouts of market volatility that have deterred many companies from listing. Siemiatkowski says he and Moritz decided early on that Klarna would have to be well-known — and profitable — in the US for it to list there. It met those conditions in 2023, he says: 'Now it's just a question of when you feel the market conditions are right.' Klarna has already weathered extreme swings in the private markets, with its valuation spiking as high as $46.5 billion before coming down to earth to $6.7 billion after a funding round. 'I've been very gifted to get a very rocky ride,' Siemiatkowski says, reasoning that he has learned from failure and is now enjoying applying those lessons. On one particularly frustrating day, he remembers jumping in his car, cranking up the volume to , by Queen and David Bowie, and realizing that he had chosen this challenge. 'If you're Zlatan [Ibrahimović], the biggest Swedish soccer player, you want to play in the Champions League finals,' he remarks. You may not win the finals, but you have to appreciate the experience regardless of the pressure, he says. 'I mean, this is what I signed up for, right?' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Tom's Guide
3 hours ago
- Tom's Guide
Netflix's updated homepage is getting pushback from some users — here's why it's exactly what the service needs
Netflix recently rolled out its first big homepage redesign in over a decade, and it's definitely a noticeable change. The new look is cleaner and more modern, with a navigation bar at the top and recommendations that feel more tailored to what you like. The service has streamlined how shows and movies are displayed, aiming to make it easier to find something to watch without all the clutter. Plus, Netflix is catering to the TikTok generation by testing a vertical video feed on its mobile app, packed with short clips from shows and movies. Unfortunately though, not everyone's thrilled. Since the update started rolling out globally, plenty of users have taken to social media to complain. Spending any time on the Netflix subreddit quickly uncovers plenty of users sharing their frustrations and personal complaints about the service. This includes missing (and removed) features along with fewer titles being shown at once. Some have even gone so far as to start a petition to "bring back the old user-friendly interface." It's the first major redesign Netflix has done in years, so it's understandable that change feels jarring for some. Despite the grumbles, I actually like the new layout. It feels less overwhelming, which helps me focus on what I want instead of falling into the endless scroll vortex that usually ends with me annoyed and turning the TV off. Sometimes change is exactly what a streaming service needs, and here's why. As mentioned before, the Netflix subreddit is where most opinions are being voiced. The common complaint by far is how few titles are now visible on screen at once. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. Previously, a single row could show around seven options, but that number has dropped due to the new design's auto-expanding tiles and autoplay previews. Some users have even noted (somewhat ironically) that they can now see more shows on their phone screen than they can on their much larger TV. I also noticed that a couple of well-liked features have quietly disappeared. The 'new & popular' tab (which used to give a quick overview of trending titles and upcoming releases) is no longer part of the new layout. The update also did away with the 'categories' section, though fewer users seem to be upset about that change. Netflix highlighted the differences between the new "My Netflix" tab and the main homepage, but in practice, they look pretty similar as both show many of the same rows and recommended content. This is a criticism I can't really argue with. Of course, it wouldn't be a real controversy without some backlash on X too. One user commented on how they can't set reminders on movies and TV shows, because they can't even see them. Meanwhile, another user called it 'headache-inducing' due to the titles being too big. However, it's tough to tell just how much the online controversy reflects the opinions of Netflix's entire user base. Plus, it's unclear exactly how many people have even seen the new interface yet. The rollout started in May, but which countries or what portion of users have access remains unknown. It's also important to note that Netflix's own testing indicates that most users (even if they're not vocal about it) actually prefer the new layout (h/t The Hollywood Reporter). While it might seem like everyone's unhappy, you're only hearing one side. Don't get me wrong, I totally get why people are disappointed. Change is frustrating, especially when it comes to the platforms we use daily. But as someone who's incredibly picky about what to watch, I've actually found the new Netflix homepage to be a refreshing update. The fewer titles shown on screen at once make the experience feel less cluttered and more focused on your viewing habits. Instead of getting overwhelmed by endless rows, I can actually take in what's there, and honestly, the larger thumbnails and auto-playing previews make everything look way more appealing (we love a good aesthetic). Despite the redesign, all the essentials are still right where you need them. You've still got the top 10 list, the 'continue watching' row, and the ever-helpful 'new on' section. So while it might look different, nothing else has really been taken away. The same goes for the 'My Netflix' tab. Your personal list is still there, plus a solid lineup of recommendations based on what you've been watching. That said, I do understand why some people are frustrated. A few features do feel a bit more tucked away, and certain titles might not jump out like they used to. But with any big change, there's a bit of a learning curve. Hanging on to the same design forever can get stale pretty fast. People's habits change, tech moves forward, and what felt great ten years ago might now seem a bit clunky or outdated. Updating the interface keeps things feeling fresh, shows Netflix is actually listening and evolving, and helps the service keep up with what we want and need. Plus, with better screens, faster internet, and all kinds of new devices focused on AI, there are better ways to make browsing and watching easier and more fun. Changing things up lets Netflix use those improvements so the whole experience just feels smoother and more enjoyable. So yes, I'll keep defending Netflix's redesign, and I don't think it's quite cause for anyone to rush into canceling their subscriptions over it.
