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Duolingo's CEO Luis von Ahn is doing damage control after his "AI-first" memo sparked backlash. He tells The NY Times the controversy was due to miscommunication.

Von Ahn insists the memo was misunderstood due to a lack of context. He emphasizes that Duolingo has never laid off full-time employees.

Let’s dive into the details. . .

Today in the “Incredible AI” world:

• Duolingo’s AI-First Future Sparks Debate

• AI Became a Cybercriminal’s Toolkit

• AI Toys for Kids Revolutionizing Playtime

• How to Master Video Editing with AI

• 5 Super-Useful AI Tools You Should Try

• AI Image of the Day

Read Time: 4 minutes

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Duolingo’s AI-Driven Evolution Under Luis Von Ahn:

Duolingo’s founder Luis von Ahn is rethinking how much AI should shape language learning. He’s concerned that generative models may dilute human nuance. The company is now balancing innovation with educational integrity.

Things to Know:

• Founder’s Shift in Perspective: Luis von Ahn once championed AI’s role in education, but now he’s cautious. He believes human interaction is still essential for meaningful language learning.

• AI’s Growing Influence: Duolingo uses AI to personalize lessons and simulate conversations. But von Ahn warns that overreliance could lead to shallow learning experiences.

• Human Touch Still Matters: Despite AI’s efficiency, Duolingo is investing in human-led tutoring and feedback. The goal is to preserve emotional and cultural depth in language acquisition.

Duolingo’s journey reflects a broader tension in edtech: speed versus substance. AI can accelerate learning, but it can’t replace human connection. Von Ahn’s pivot reminds us that thoughtful design still matters.

AI-Powered Hacking is the New Cyber Threat:

Russian hackers recently deployed the first known AI-powered malware targeting Ukrainians. This marks a turning point where hackers worldwide are integrating AI tools into their operations. The era of AI-enhanced cybercrime has officially begun.

Things to Know:

• Russian Intelligence Breaks New Ground: Moscow's spies created malware with large language models that automatically search for sensitive files. This represents the first documented case of state-sponsored AI malware in action.

• Hackers Getting Faster and Smarter: AI tools aren't turning novices into experts, but are making skilled hackers better and faster. Cybercriminals, spies, and researchers are all adopting these powerful new capabilities rapidly.

• Defense Teams Fight Back Hard: Google's security team used AI to discover at least 20 important software vulnerabilities before criminals could find them. The cat-and-mouse game between attackers and defenders has intensified significantly.

The cybersecurity landscape is transforming rapidly as both sides weaponize artificial intelligence. Startup Xbow became the first AI to top HackerOne's global hacking leaderboard in June. Specialized AI hacking companies are emerging as the technology finally matches expectations.

AI Toys Redefine Kids’ Playtime Forever:

AI-powered toys are evolving fast, blending storytelling, emotional intelligence, and interactive play. Curio and Grem are two standout examples pushing boundaries in child-focused tech. These toys don’t just talk—they listen, adapt, and even reflect.

Things to Know:

• Emotional Intelligence in Play: Curio and Grem are designed to respond to children’s emotions and questions. They use conversational AI to create meaningful, personalized interactions that go beyond scripted responses.

• Storytelling Meets Machine Learning: These toys build narratives based on user input, learning from each interaction. Over time, they craft unique story arcs tailored to each child’s personality and curiosity.

• Privacy and Ethical Concerns: Experts raise concerns about data collection and emotional manipulation. While companies promise safety, the line between entertainment and surveillance remains blurry for AI toys.

Children form deep connections with these toys, often treating them like friends. This emotional attachment raises questions about dependency and the role of AI in early development. AI toys are no longer just gadgets—they’re companions.

- AI TUTORIAL -

How to Master Video Editing with AI:

Traditional video editing can involve a steep learning curve and a confusing interface. But what if you could edit videos by simply editing the text?

Descript is an AI-powered video editing tool that lets you do just that. With Descript, you can edit your videos by editing the corresponding text transcript.

How it works:

• Upload your content: Simply add your audio or video files.

• Transcription: Descript provides accurate transcriptions in minutes.

• Edit with ease: Edit your content just like a text document—cut, copy, paste, and delete. Changes you make to the text automatically update the audio/video.

• Overdub: Need to fix mistakes or add new text? Use Descript’s AI-powered overdub feature.

• Publish and share: Export your content to various formats or share it directly from Descript.

Stop struggling with traditional video editing tools. With Descript, you can create professional-looking videos quickly and easily.

- DAILY POLL AND RESULT -

Today’s Poll:

Vote and find out the result tomorrow.

Yesterday’s Result:

Q) Should AI be allowed to write news articles?

• A) Yes, they can be accurate - 85% 👑

• B) No, it lacks human touch - 5%

- BEST AI TOOLS -

Speechmatics: Foundational speech technology. Enterprise-grade APIs for ASR and building conversational AI products.

Aidy: An AI platform that works around the clock to track and research the issues that drive your organization’s decisions.

Bolt: Prompt, run, edit, and deploy full-stack web apps with natural language prompts.

Swallow: Use AI agents and no-code tools to create enterprise-ready pricing APIs and quote forms directly from Excel spreadsheets.

AI Name Genius: Generate creative, catchy, and available domain names in seconds.

- AI IMAGE OF THE DAY -

The Colossal Wolf Towers Over The City:

Prompt:

"A cinematic photograph of Fenrir, the colossal grey wolf, towering over a storm-ravaged modern city. His crimson eyes glow as bristling fur cuts through wind and rain. Skyscrapers shrink beneath him while dust and debris swirl around his massive legs. Flickering city lights fight against dark storm clouds. Shot from a wide-angle ground perspective with an Arri Alexa LF, dramatic lighting emphasizes his immense power and scale."

Try this prompt in any decent AI image generator and let me know your result.

The Best New App for Reading Newsletters:

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Big investors are buying this “unlisted” stock

When the founder who sold his last company to Zillow for $120M starts a new venture, people notice. That’s why the same VCs behind Uber and eBay also backed Pacaso. They made $110M+ in gross profit to date. They even reserved the Nasdaq ticker PCSO. Now, you can join, too.

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