Call me paranoid, but I’m always thinking about how certain technology trends could disrupt the companies I hold inside my SIPP and ISA. I want to be invested in the disruptors (Netflix, say, or Amazon) rather than the disrupted (Blockbuster or Woolworths).
Alphabet CEO Sundar Pichai famously said: “Artificial intelligence is one of the most profound things we’re working on as humanity. It is more profound than fire or electricity.” You don’t get more disruptive than that!
From robotaxis to AI agents, the pace of innovation today is dizzying. And it’s sure to shake up many industries in the coming years.
One product I’m watching closely is Meta Platforms’ AI-powered smart glasses. Think hands-free messaging, videos, and AI assistants whispering information into your ear. All while looking (mostly) like a normal pair of specs/sunglasses!
Over time, people may use some smartphones apps less than before.
They’re catching on
Building on its Ray-Ban AI glasses, Meta has just released new ones with Oakley. They pair with the Meta AI app and have a personal AI assistant built in.
In Q1, the Ray-Ban Meta AI glasses had four times as many monthly active users as the year before. So they’re catching on.
Live translations
Meta’s CFO Susan Li said this on the firm’s Q1 earnings call: “This month, we fully rolled out live translations on Ray-Ban Meta AI glasses to all markets for English, French, Italian, and Spanish. Now, when you are speaking to someone in one of these languages, you’ll hear what they say in your preferred language through the glasses in real time.”
This got me thinking about Duolingo (NASDAQ: DUOL), the world’s leading language learning app. It had 46.6m daily users in Q1, and over 130m monthly learners. Of those, 10.3m were paying subscribers, up 40% year on year.
I added this growth stock to both my ISA and SIPP a few months back. But if we’re all going to be wearing AI glasses in future, and they can automatically translate foreign words in real time, why bother learning a new language?
Of course, I’m not suggesting the need to learn languages is suddenly going to disappear. Many people need to speak one for work or study, particularly English (a big cash cow for Duolingo). But some casual learners might ditch the app, increasing the churn rate.
Meanwhile, a visual-based rival could emerge, designed specifically for smart glasses and using an entirely different learning model. For example, one based on immersive, real-world learning, using your environment.
Indeed, in this scenario, the firm’s app-based lessons with cartoon characters might one day seem quaint!
One thing reassuring me here, though, is that Duolingo is already seriously embracing the technology. It uses AI to personalise lesson sequences and predict which words or grammar points a learner will forget.
In April, generative AI helped it launch 148 new language courses, more than doubling its offering. And paid subscribers can now video chat with an AI-powered avatar to practice speaking in real time.
Plus, the company has rolled out chess lessons to compliment its non-language courses in music and maths. I’m not panicking. The future still looks bright.
Duolingo stock has dipped 25% since May. While it’s still not cheap, I think it’s worth considering for long-term investors.
