00:00As AI rapidly reshapes language learning, we're exploring how companies like Babbel are balancing
00:05cutting-edge technology with the human connection that keeps learners engaged. Joining us now for
00:11more on all of this is Julie Hansen, Chief Revenue Officer of Babbel. Thank you so much for being
00:16here, Julie. Justine, thanks for having me. Of course, this is such an interesting topic here.
00:22I mean, AI has transformed so many things in our entire world, but especially so many industries
00:27just over the last year. So how has it really been changing the way that people learn languages,
00:32and what has been the biggest shift that you've really seen as we've just looked at AI just kind
00:37of taking over everything? You're absolutely right that it's touched a lot of aspects of language
00:44learning. The biggest impact it's had is on translation. So real-time translation is obviously
00:52pretty incredible with AI, and that does obviate the need for some tiny small bit of language
00:58learning, but not the core experience of language learning. Most people don't learn language to have
01:04a translation, but rather to have a conversation. So we're not seeing it necessarily change the urge
01:10to learn languages at all, actually. And interestingly, we did this survey in April, and we found that
01:17about half of Gen Z and millennials are using AI translation regularly, and yet this is the group
01:24that has the highest motivation to learn a new language in the U.S. So it really doesn't seem to
01:29be
01:29dampening that desire outside of the quick hit of having a conversation in taxi. Yeah, definitely. I mean,
01:36it's just fascinating to hear about those survey results and see what people are really thinking that
01:42they need AI for and the parts that they don't want AI for that are a little bit more conversational,
01:47that are a little bit more human-oriented. So tell us about some of those overhauls that you're making
01:51and why you're making those changes and how those changes will look for users. So there's no one single
01:57way of learning a language. You know, there are kind of these four main modalities, speaking, listening,
02:02writing, reading, and everyone benefits from a different mix of those. Up until now, although we've had 19 years
02:10of user data, we've really had pretty close to a one-size-fits-all product based on kind of an
02:16excellent pedagogy and the best practices in language learning, etc. Our new product will overhaul
02:24that and create personalized learning path for every single person using the modality that suits them best
02:30the most, but also using their mistakes becomes their curriculum in a personalized way. You want to go
02:37faster? The product will do that with you. You want to go more slowly and repeat more? It will
02:43automatically do that. The lessons are much shorter because so are our attention spans. And so we'll
02:51also be able to offer many more languages in due course with the power that AI content creation brings
02:57us. So it's very exciting to see, you know, how we're able to harness this AI power. We've long had
03:07AI in the product in some ways, especially in the form of machine learning, which we use for the speech
03:13recognition, which is pretty magical actually, but taking that to another level as well. And then the other
03:22bit of magic that AI brings to language learning is that low pressure, low stakes, private practice,
03:30um, where, you know, most people find as they're learning a lesson, they they're going along great,
03:36but when they try to speak, they just freeze up. It's the single biggest fear in language learning is
03:41making a mistake. Um, you can make as many mistakes as you want with your AI tutor and it will
03:47patiently
03:48correct you. So we're really leaning into that as well. And we already have Babbel speak in the
03:53product, but again, taking it to the next level. Yeah. I mean, there's so many different pieces of
03:58the puzzle there that you're kind of bringing together, right? With this kind of adaptability
04:01for the actual lessons, but then also this kind of AI tutor chat bot kind of model as well. And
04:07I think
04:08you're right. A lot of people do get so self-conscious. So being less self-conscious in front of a
04:12non-person,
04:13um, could definitely help in those kinds of fears that people have, but there also is this kind of
04:18mix of excitement around these kinds of AI tutors and chat bots, but then also this feeling of wanting
04:23human connection and community. So how do you balance all of that as you move forward here?
04:30Yeah, you're absolutely right. It's, um, perfecting talking to AI is not the same as speaking in real
04:36life. And that's always been the goal of Babbel is to get you out there speaking. So it's the mix
04:42of
04:42pedagogy approaches. Um, but also always keeping the focus on practical language, you know, um, not just
04:52random conversations that you, um, could have with wherever you and the AI want to go, but rather
04:58focused, curated foot with the intent of equipping you to go out there and speak. And that is one of
05:06the key things, you know, the other interesting, um, thing that we're bringing out, which is not
05:12necessarily only about AI, but language is about connection. So while, um, it's a solitary pursuit
05:21to do your language learning, if you can find a group and do it either together or just in concert,
05:28um, where you're holding each other accountable, you're comparing progress, you're having fun with it,
05:34that vastly increases learner success. Something like if people who are learning groups have 65% higher
05:42goal completion rate, and that's a syndicated survey, not ours. So that's why we brought out the group
05:49plan and are really leaning into that as well. Yeah. I mean, it's such an important, uh, factor
05:55there to have that community kind of aspect, holding each other accountable and also being excited to
05:59then do this thing that you want to do with learning a language, but with others, um, so important,
06:04especially since the final goal is to be able to speak to others. Uh, so that piece of it is
06:08just so
06:08important. Looking a little bit now at the business side of things, you know, many consumers are now
06:13expecting AI features in the products they pay for. Do you think AI has really become a premium feature that
06:18kind of justifies a higher subscription price or a higher tier, or is it really just kind of the
06:23baseline these days that's expected and just fold it in? I do think it's becoming more baseline,
06:31but at the same time as the subscription industry matures and we get more, we and consumers get more
06:37sophisticated about understanding how people want to pay for what they want to pay for. Um, we see the
06:45opportunity to have more nuanced subscriptions. So whether an AI tier is a premium tier or unlocking
06:53more languages or, you know, unlocking a higher level of learning, I think the future of Babbel will
06:59be more than one type of subscription. Um, and I think that's, that's, we didn't, that's a trend in
07:08the subscription industry as well. And AI is part of that trend, but not, um, the only cause of it.
07:14Yeah. I mean, it's so many different things you have to think about when you're building
07:17these different subscription models and these different tiers and incorporating all of these
07:21different tools that you have now. And also what will be coming in the future as well. I mean,
07:26when you look five years ahead, what do you think the future of language learning looks like overall?
07:30And then also what role do you see Babbel playing in that evolution as you guys continue
07:34to evolve and add new features and take in all the new technology that's available?
07:39Yeah. We continue to think that the future is bright because we are fundamentally helping
07:45people do something that's extremely human and basic. Um, and AI is probably not going to change
07:52that in the short term. Um, so AI, we believe we'll just keep evolving the product to be, or it
07:59will help
08:00us evolve the product to be better, more personalized, more efficient, more effective. Um, and I think
08:06the best, the most successful language learners have always incorporated other learning techniques
08:12into what they do. An app alone will not get you fluent. And we, we don't make a claim that
08:17it will,
08:18but media adding to that or travel immersion, um, and AI practice is the trend that we're seeing,
08:26um, evolve as well, where people have purchased an app, but also are using AI on their own to reinforce
08:32that.
08:33Love that trend. I think that's a very powerful development for, for Babbel and for AI learning
08:39in general. Um, so as long as humans want to talk to each other, we see a bright future for
08:45language
08:45learning. Well, it's so exciting. We really appreciate you giving us so much to think about.
08:50We look forward to seeing where all of this goes. Julie Hansen, Chief Revenue Officer at Babbel.
08:54Thank you so much for being here. Thank you, Justine.
