Al-powered strategy and marketing: rethinking strategic and marketing management in the age of artificial intelligence.

Artificial Intelligence (AI) is rapidly transforming how organizations design strategies and engage with their customers. What once seemed like an experimental technology has now become a central part of how companies compete, innovate, and grow. This thesis examines how AI is reshaping both strategic management and marketing by focusing on Duolingo, one of the world’s most widely used education technology platforms. From the very beginning, Duolingo integrated machine learning to personalize lessons, predict user difficulties, and encourage daily practice through gamification. These early uses of AI helped establish its reputation as an accessible and effective learning tool. In recent years, however, Duolingo has moved further into an “AI-first” model, introducing advanced features powered by generative AI, such as Duolingo Max. These tools allow learners to practice conversations with an AI partner, receive instant explanations for their mistakes, and experience more natural interaction with the app. This shift has had clear business impacts: a rapid increase in daily active users, strong subscription growth, and expanding revenue streams. At the same time, user reactions reveal important challenges—some learners express frustration with occasional errors or artificial responses, while others worry about losing the human touch in education. By analyzing Duolingo’s AI journey and comparing it with examples from other industries, this thesis explores the broader question of how AI can be used not only as a technological upgrade but as a strategic driver of competitive advantage. The study argues that while AI has enormous potential to reshape marketing and strategy, its success depends on balancing efficiency with empathy, automation with trust, and innovation with human-centered design. In this way, Duolingo’s case highlights both the opportunities and the responsibilities facing organizations that embrace AI in the digital age.