AI continues to be catalyst for Duolingo but 'killer' for Shutterstock: Citizens JMP's Andrew Boone

Andrew Boone from Citizens JMP discussed the contrasting effects of AI on companies like Duolingo and Shutterstock, highlighting Duolingo’s potential growth through AI-driven tutoring features, while Shutterstock faces challenges from AI-generated content threatening its business model. He also touched on how AI could enhance platforms like Reddit and Meta, and the evolving role of influencers in marketing as AI creates new opportunities.

In a recent discussion, Andrew Boone from Citizens JMP highlighted the dual impact of artificial intelligence (AI) on various companies, particularly focusing on Duolingo and Shutterstock. He noted that while AI serves as a catalyst for growth in some sectors, it poses significant challenges for others. Duolingo, a language learning platform, is expected to benefit from AI advancements, particularly through the integration of one-on-one tutoring capabilities that enhance conversational practice within its app. This innovation is seen as a potential driver for increased premium subscriptions and accelerated language learning.

Conversely, Shutterstock faces a more precarious situation as AI technology evolves. Boone explained that AI’s ability to generate images from text threatens the traditional stock media marketplace, which Shutterstock relies on. As AI continues to advance, there is a risk that it could extend beyond images to video and other media types, compelling Shutterstock to rethink and reinvent its business model to remain competitive in a rapidly changing landscape.

The conversation also touched on Reddit, which Boone believes could leverage AI to translate its vast array of user-generated content into multiple languages. This capability could significantly broaden Reddit’s audience and advertising potential, transforming it from a primarily English-speaking platform to a global one. As Reddit enhances its accessibility, it may see increased user engagement and a more diverse advertising market.

Boone expressed optimism about Meta (Facebook and Instagram), suggesting that the company is undergoing a significant AI-driven transformation. He pointed out that AI is improving the relevance of posts and advertisements, leading to better user engagement and higher returns on ad spend for advertisers. Additionally, Meta is developing creative tools that automate ad optimization, which could enhance advertising performance and drive revenue growth in the coming years.

Finally, the discussion raised questions about the future role of influencers on platforms like Instagram and TikTok in light of AI advancements. Boone noted that TikTok has introduced a product called Symphony, which allows for the use of an influencer’s likeness in various campaigns. This development suggests a potential shift in how brands engage with influencers, as AI could create new opportunities for marketing without relying solely on traditional influencer partnerships. Overall, the conversation underscored the transformative impact of AI across different sectors, presenting both opportunities and challenges.