Duolingo is one of the world’s most influential and leading language learning apps with over 100 million users (Guerrero, 2024). However, it comes with one key gap: conversational fluency. Our team identified this “speaking gap” as a limitation that can threaten Duolingo’s value proposition. We propose the integration of a GenAI conversational partner called DuoMate as a solution that can strengthen Duolingo’s competitive position.
DuoMate’s LLM model will be trained using Duolingo’s large proprietary base (Zacks, 2025) to ensure optimal delivery that is personalized, accurate, contextually relevant, and adaptive. It also integrates speech-to-text and text-to-speech in different real-life contexts to simulate natural conversations. Its instantaneous feed-back on grammar, vocabulary, and pronounciation aims to elevate users’ confidence with speaking a foreign language. Together, the model provides an adaptive feedback loop that bridges the gap between learned lessons and practical implication.
Currently, Duolingo operates on a freemium model. We suggest embedding the DuoMate feature with Duolingo’s recently introduced subscription, Duolingo Max (Mlot, 2023), to increase its perceived value and encourage free users to switch to a premium subscription model. By attracting both individual learners and corporate collaborations, this business decision enhances Duolingo’s revenue potential. We estimate a 41% revenue growth in the first year post-release of this feature. Duolingo’s paid subscribers are projected to grow from 20.3 to 28.3 million. With an expected window of 6 month development period prior to the launch, the estimated total development costs and first-year costs come up to around 94.7 million USD.
Upon conducting market research, we have found that the global online language learning market has been rapidly growing and is projected to reach a valuation of 91.6 billion USD by 2030 (Markets, 2024). Furthermore, there is a growing shortage of qualified human instructors – 44 million short by 2030 (Taylor, 2025) – that places a strain on language course pricing and fixed schedules. Duolingo has the opportunity to minimize the shocks of this shortage by leveraging GenAI to deliver scalable, highly personalized lessons at a lower cost and much greater flexibility. We expect early adopters to range from intermediate and advanced learners to corporate clients.
By addressing Duolingo’s critical learning gap, it can transform its platform’s value proposition from a “fun, gamified learning app” to a “conversational fluency buddy” becoming a complete language learning ecosystem. As part of Duolingo’s existing AI-first strategy which led to a 51% surge in daily active users contributing to its 1 billion USD revenue forecast for 2025 (Daigle, 2025), DuoMate plays a pivotal role in Duolingo’s evolution and growth. Thus, DuoMate serves as an innovative growth catalyst that benefits both Duolingo and its users by offering high quality, tailored lessons to each individual user while expanding Duolingo’s revenue potential, strengthening user loyalty, and reinforcing its dominance in the AI-powered education market.
References:
Daigle, C. (2025, September 21). Duolingo’s AI Strategy Fuels 51% User Growth and $1B Revenue – CAIO_Blog2025. Chief AI Officer Blog. https://chiefaiofficer.com/blog/duolingos-ai-strategy-fuels-51-user-growth-and-1b-revenue/
Guerrero, N. (2024, October 5). Good, free, fun: The simple formula that has made Duolingo a daily habit for millions. https://www.bbc.com/worklife/article/20241004-the-simple-formula-that-made-duolingo-a-daily-habit-for-millions
Markets, R. A. (2024, July 24). Online language learning to generate $91.6 billion in revenue – Global Strategic Business Report 2024-2030 – Mobile learning applications propel growth in emerging markets. Yahoo Finance. https://finance.yahoo.com/news/online-language-learning-generate-91-133100989.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAH3_6WV_hhZGDlqYfwuZi3nBqAMmgskP1YfR4HveU8WfOFVErpLoTIDGuyVOFtjNHX-Zf6OgIvjKG7ya00ya5vCRdaSNPbmRQvY71mGOOfdJexwEyeFvQET0TZGN0x0-DT7CxWBsRcq9PiyoZCaNGhKM9ckxhFH2mXn5jLUAImAx
Mlot, S. (2023, March 17). Duolingo’s MaX subscription uses GPT-4 for AI-Powered Language learning. PCMAG. https://www.pcmag.com/news/duolingos-max-subscription-uses-gpt-4-for-ai-powered-language-learning#:~:text=Duolingo%20jumped%20on%20the%20generative,conversations%20with%20in%2Dapp%20characters.&text=The%20Explain%20My%20Answer%20feature,to%20go%20for%20a%20hike.%22
Taylor, L. (2025, August 22). Global Teacher Shortage 2030: What It Means for International Educators. https://www.teachertrainingasia.com/teaching-blog/2393-Global-Teacher-Shortage-2030-What-It-Means-for-International-Educators-blog.php
Zacks. (2025, September 18). Duolingo: AI and data powering Scalable growth and Competitive moat. Nasdaq. https://www.nasdaq.com/articles/duolingo-ai-and-data-powering-scalable-growth-and-competitive-moat
