How an edtech startup used AI tools like Midjourney and HeyGen to ...
In the first weeks after OpenAI released ChatGPT to the public in 2022, the chief executive of the Ukrainian edtech startup Headway, was wary of the artificial-intelligence hype. He decided his then-three-year-old company should adopt a defensive strategy, letting other companies take the lead in generative-AI investments, and reaping the benefits afterward, should they indeed come. A business trip to Silicon Valley the following April completely changed the thinking at Headway.
Company-Wide Focus on AI
In the first six months of 2024, AI-driven ads reached 3.3 billion impressions, and the return on investment from video ads increased by 40% due to reduced production costs.
AI Adoption in Marketing
Headway is among the many marketers leveraging AI tools to reduce advertising costs. Klarna, for example, cited AI in cutting its spend on marketing agencies by 25%. A Gartner study predicted that 30% of outbound marketing messages from large companies would be synthetically generated by 2025. The rapid adoption of AI tools in marketing has industry experts excited about AI’s prospects, though concerns linger about the impact on agency jobs and consumer readiness for AI-centric advertising.
Headway's Educational Apps
Founded in Ukraine in 2019, Headway offers a portfolio of educational apps downloaded by over 110 million users worldwide. The company, headquartered in Kyiv, Ukraine, operates apps like Headway, Impulse, AddMile, and Skillsta. The flagship Headway app provides 15-minute book summaries, challenges, and micro-learning sessions.
Headway monetizes through paid subscriptions and heavily advertises on digital platforms like Meta’s Instagram and Facebook, Google, and TikTok.
AI in Ad Production
Headway utilizes AI technology in all user-generated-content video ads, including subtitles and voiceovers. UGC ads, accounting for 30% to 50% of subscriptions and free trials, are crucial for user acquisition.
AI Integration in Products
Headway is integrating AI features into its products, such as testing an AI assistant in the Headway app using OpenAI API, Google Cloud’s Vertex AI, and a vector database to provide conversational book summaries. Users are engaging significantly with the AI assistant, showcasing the success of the company’s AI initiatives. Headway continues to innovate using AI tools like Midjourney and Leonardo AI to enhance its product offerings.
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