Interview with Babbel US boss
“Of course we will not ignore AI either”
May 28, 2023, 4:09 p.m
English is the most spoken language in the world. That didn’t stop the language learning app Babbel from taking the leap across the Atlantic anyway. In an interview, US boss Julie Hansen explains how the USA has become the largest market and why AI is not making the app superfluous.
ntv.de: The name Babbel is reminiscent of the babel fish from the novel “The Hitchhiker’s Guide to the Galaxy”, a creature that you put in your ear and then understand every language. It has long since become a symbol for machine-based translation systems. At the pace that artificial intelligence (AI) is advancing, when do you think there will be applications that translate languages right in our ears?
Julie Hansen: Tools that speak users’ ears and translate them simultaneously have been around for a long time. For example from Google. Such solutions are also great for certain quick applications, such as asking for directions. But Babbel also wants to create deeper mutual understanding through language. Especially in the USA, many people marry into families with different languages. For example, if an application whispers a translation in people’s ears, it’s difficult to develop a relationship with your mother-in-law who speaks a different language.
AI keeps getting better. Won’t this make Babbel’s business model superfluous at some point?
We believe that learning a language always requires the human touch of a teacher. Even if the use of AI will certainly increase in the future. Around 200 linguists work in our didactic team at Babbel. Their human expertise and cultural competence are invaluable. Of course, we will not ignore AI either – but always in connection with a human touch.
Does Babbel already use AI?
Julie Hansen has headed Babbel’s US business since 2017.
Babbel already has tons of machine learning built into it. We started experimenting with specific AI applications as early as 2016. In the current Babbel product, this can be found in the speech recognition we have specially implemented for our application, in our error correction and the associated exercises, and in the display of personalized content to the learners. All these examples are based on the interaction of our expert knowledge and AI technology.
Are you currently learning a foreign language?
I learned German. It’s difficult for me, however, because I haven’t been able to be in Germany often because of the pandemic. Now that travel is possible again, I will get behind it more.
Babbel is a Berlin scaleup. In 2015, the company made the leap to the United States. English is the most spoken language in the world. Why did the company decide to expand back then?
In fact, the US market has its pitfalls. Many Americans take it for granted that foreigners speak English. The majority of the US population does not study a second language in school. Despite this – or perhaps because of it – the USA has now become Babbel’s strongest market. In the first six months of last year alone, we sold a million subscriptions there. After all, the US is the largest economy in the world. So many different nations come together here, which also awakens the desire to learn new languages. In addition, the concept of “lifelong learning” is very well established in American society. People always want to improve themselves. In addition, the B2B market is very interesting for us, i.e. companies that want to offer their employees flexible language courses.
Americans have a reputation for being reluctant to learn foreign languages…
In a way, it’s actually very helpful. On the one hand, our app is the answer to a tight offer, but on the other hand it also takes away many people’s reservations. For many, the ability to study with an app is very comforting. Because she doesn’t judge.
What language do Americans learn most often?
Spanish. The big advantage in America is that many of our users have the opportunity to put their Spanish skills to the test in everyday life. Not only the proximity to Mexico, but also a large Spanish-speaking community makes this possible. One of the big adjustments we made for the US market was that we also developed courses in Mexican Spanish. This was of enormous importance for our success in the USA.
How did the company differentiate itself from its US competitors?
One of the most amazing things about the US market is that it’s the most competitive in every conceivable category. And of course we see that too. There are also a number of other language learning apps on the market in the USA. Our offer is aimed primarily at motivated users who really want to speak their new language and therefore don’t mind learning some grammar. These are people who are looking for deeper experiences such as a new job, a great trip or expanding their own horizons.
To what extent do the European and American markets still differ?
In both markets, Babbel is all about teaching users to have real-life conversations. What is different, however, are the motives: In Europe and the rest of the world, for example, people learn a foreign language much more often in order to get ahead in their job. US users do this less often. They learn more for travel than brain training, to exchange ideas with other communities – or simply for self-improvement.
Startups and tech companies have had a difficult time in Silicon Valley since last year. Has the big wave of layoffs in the USA also reached Babbel?
The wave of layoffs in the technology sector has been painful for many companies. Luckily, Babbel didn’t have to lay off any employees in the US or Europe. On the contrary: we are hiring even more. 1,000 employees now work for Babbel. Traditionally, we have always been more conservative in our growth. We’ve had positive cash flow for a decade. The pandemic has also given the online learning industry an incredible boost, which we have been able to fuel by launching Babbel Live, our virtual classrooms with motivating teachers.
The company was actually scheduled to go public in 2021. Then the walk onto the floor was canceled at short notice. Reason: Unfavorable market conditions. Will there be a new start soon?
We actually have more money in the bank than we’ve ever collected. So at the moment we are in no hurry to go public. There must first be a price correction on the stock market. Some startups that dared to take this step have since been badly punished for it. In retrospect, I would even say that we can be glad that we did not go public in 2021.
Juliane Kipper spoke to Julie Hansen