Duolingo to launch generative AI video-calling feature in India to boost monetization

US-based language learning company Duolingo is looking to roll out its newly launched generative artificial intelligence-backed video calling feature 'Video Call with Lily' in India this month to boost monetization in the country, said its chief business officer Bob Meese.

“The video calling feature is our big bet on AI, and we continue to update our AI features. We might be in the sweet spot for generative AI,” Meese said in an interview with Mint. “We now have enough resources, with the money and talented people to invest in it, but we're still trying to move very, very quickly. We think moving quickly is really needed with these new technologies.”

This comes at a time when the language learning industry is expecting some challenge from generative AI and its language and translation capabilities. Companies like Duolingo are attempting to launch features on top of the disruptive technology.

Duolingo is likely to boost monetization with this addition as users are more likely to pay for this feature, said Meese, who is on a four-day India visit. “Today, that is not available in India, but we're making that available in India, as soon as this month. We think that video call will help people with conversation practice, and that that's a feature that people in India are more likely to pay for.”

The feature, launched in September in the US market, lets users converse with Lily, a virtual character, providing an immersive and interactive experience.

The AI video-calling feature will be part of the subscription model, Duolingo Max, which is the company’s most premium offering. 

Founded in 2011 by Luis von Ahn and Severin Hacker, Duolingo is an American educational technology company that teaches languages through gamification. In 2020, Duolingo had stopped monetizing in India to make the most of the growth in the Indian language learning market, buoyed by Covid-19 induced lockdowns.

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India then stood out, growing at four times the pace of its other international markets, making the country one of the two fastest growing markets for the company, according to news reports. However, last year Duolingo turned the revenue tap on for India.

“When we turned on monetization, it slowed down that growth a little bit. But that was the right decision for us,” Meese said. “We have made that decision to turn on monetization to build the long-term health of the market in India for us.”

Its subscription model Super Duolingo (formerly known as Duolingo Plus), DET, or Duolingo English Test, are the company’s major revenue sources. “India and China are by far the two most important markets for DET.”

India expansion plans

The company also plans to expand its India presence and hire more tech talent, said Meese, at a time when the edtech industry in India has seen a slew of layoffs in the past two years. With funding and valuations dropping after the pandemic, the sector is also ripe for consolidation.

Duolingo is also evaluating acquiring edtech companies for talent in India to grow its presence. “In India, we're focused on getting more talent. We're getting more people to grow the India tech team, and we will follow up with looking at acquihiring companies,” Meese told Mint.

“It's hard for us to demonstrate that we're serious without hiring people locally, and we believe it's a big step to hire our first engineering and product people in India,” he said. “This is a really big step for us. Additionally, we want more people from our headquarters to visit India to understand the local market landscape better.”

In July this year, the company introduced an English-language course worldwide for the intermediate level, with advanced English skills for education and career growth. “It is a big focus for us at the whole company level, and India is a really fast-growing part of that,” Meese said.

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The company is also increasing its penetration in the local languages segment. In August 2022, Duolingo launched a new Indian language course on its platform, allowing users to learn English from Bengali. It followed that up with Telugu in 2023.

Meese told Mint that the company now plans to launch Tamil in 2025.