Duolingo, Inc. (DUOL) saw its stock price surge 5.23% in pre-market trading on Thursday, following the company's announcement of a strategic shift towards an AI-first approach. The language learning app developer plans to gradually replace contract workers and contractors with artificial intelligence, signaling a major transformation in its operational model.

In an email shared on Duolingo's LinkedIn account, CEO Luis von Ahn emphasized the company's commitment to embracing AI technology. "AI has already changed the way we work," von Ahn stated. "This isn't a question of if or when. It's happening now." The company aims to streamline its content creation process and improve efficiency by leveraging AI capabilities, potentially leading to significant cost savings and accelerated growth.

Investors appear to be responding positively to Duolingo's forward-thinking strategy, viewing it as a move that could enhance the company's competitive edge in the edtech market. While the transition may face some challenges, particularly in terms of maintaining content quality and managing the workforce shift, the market seems optimistic about the long-term benefits of this AI-driven approach. As Duolingo continues to innovate and adapt to technological advancements, it may be well-positioned to expand its user base and improve its financial performance, factors that could contribute to sustained stock price growth.