Forbes contributors publish independent expert analyses and insights.

Language learning pioneer Duolingo recently faced severe backlash after CEO Luis von Ahn announced in an all-hands email, later shared on LinkedIn, that the company is gradually phasing out human contractors, looking for AI use in hiring and in performance reviews, and that headcount will only be added if a team cannot automate more of their work.

The reaction was so intense that the company temporarily deleted all of its content on TikTok and Instagram, where it had amassed 6.7 million and 4.1 million followers respectively, after both accounts were "flooded with negative feedback."

This situation shows the fundamental tension facing modern business leaders: how to embrace AI's efficiency and cost benefits without alienating customers who may be concerned about job displacement. And, how can a company reassure its stakeholders that it's on top of AI without sparking a backlash?

This isn't a new dilemma. Businesses have always sought to improve efficiency through technology, but the rapid advances in AI have intensified these concerns. Even many white collar workers are running scared.

This isn't Duolingo's first AI controversy. The company faced criticism in 2023 for quietly reducing its contractor base and introducing some AI features. The difference today is the public nature of the company's AI-first declaration and the scale of the reaction.

Unlike many leaders that view AI primarily as a way to increase efficiency, von Ahn believes that AI can not only improve the current services but can dramatically scale the firm's offerings in a way not achievable by humans. He compares AI to the mobile revolution that let Duolingo greatly extend its reach. von Ahn wants the company to completely rebuild its systems using AI.

Most of von Ahn's letter focused on these plans, but critics seized on his hiring and headcount remarks to loudly demand the company employ humans, not AI.

Business leaders face a difficult balancing act:

Duolingo had been performing exceptionally well before this controversy, with strong revenue and user count metrics. The firm's share price was near a record high. The announcement by von Ahn wasn't a response to investor fears or competitive threats. Rather, it was meant to be an exciting new direction for the firm.

While it's tempting to draw parallels to the original Luddites -- 19th century textile workers who destroyed machinery they believed threatened their livelihoods -- today's situation is more nuanced. The backlash against Duolingo wasn't led by employees or contractors directly affected by the company's AI policies, but primarily by consumers and others concerned about the ethical implications.

This suggests that modern resistance to AI isn't simply about protecting jobs, but reflects broader societal concerns about the pace and nature of technological change, including:

Today's ubiquitous social media platforms lets people not connected to a particular company or situation weigh in, often in large numbers, increasing the pressure on leaders.

For business leaders, the Duolingo situation offers several lessons:

Duolingo isn't the first company to take heat for comments about AI use and hiring, and won't be the last. In April, Shopify CEO Tobi Lutke was criticized after saying hiring managers would have to justify new hires by showing AI couldn't handle the work.

As AI becomes increasingly capable of performing tasks previously done by humans, all companies will need to navigate the complex interplay between technological advancement, business imperatives, and social responsibility.

Rather than dismissing consumer concerns as irrational resistance to progress, forward-thinking companies will recognize these reactions as important signals about how they should approach AI integration -- not necessarily to slow it down, but to ensure it happens in ways that maintain trust and align with broader social values.