New report shows AI adoption rising in localisation workflows

A new industry report has highlighted the increasing adoption of artificial intelligence in localisation processes among businesses in Europe and North America.

The research, conducted by Lokalise and covering responses from over 500 professionals at medium to large companies, shows that 55% of businesses are currently using AI for localisation, particularly for lower-priority content. According to the findings, 63% of respondents believe AI improves translation speed but still requires human oversight to maintain quality.

The primary use cases for AI in localisation cited by businesses include website or application content, with 52% of respondents indicating use in this area. AI is also used for marketing materials and regulatory documents by 48% of companies, while 46% utilise it for internal documentation.

The report indicates a significant shift towards hybrid localisation approaches that blend AI with human review. Eighty-one per cent of companies reported that they are likely to implement such hybrid models within the next year, with 40% of organisations identified as having high localisation maturity stating they are very likely to do so. When asked about the projected impact of AI over the coming year, 46% anticipate that AI will run most localisation workflows, with 42% predicting AI will handle the majority of translation tasks.

Revenue growth remains a primary driver of localisation efforts, with 74% of companies stating that localisation accounts for over 26% of their revenue growth. Furthermore, 11% of those surveyed attribute more than half of their revenue growth to localisation. The top motivating factor for increased localisation was identified as new revenue growth potential, cited by 55% of companies, followed by the need to meet customer demand in specific regions at 53%, and the intention to improve customer experience at 52%.

In terms of benefits, 51% of respondents reported that enhanced localisation led to improved customer satisfaction. Additionally, 47% mentioned that it improved inclusivity and accessibility, and 45% said it strengthened their brand's presence in global markets.

Despite recognising the importance of localisation, over two-thirds of organisations reported gaps in localisation maturity. The study defined maturity across three levels, with 'low maturity' organisations demonstrating little to no strategy and ad hoc processes, 'medium maturity' companies possessing structured and recurring documentation, and 'high maturity' businesses exhibiting fully optimised and integrated localisation workflows. The research also showed that 43% of companies continue to rely on spreadsheets for managing complex localisation projects, a practice that can contribute to delays, errors, and challenges in collaboration.

Magnus Slind-Näslund, Chief Technology Officer at Lokalise, stated: "Our research reveals that having a localization strategy and the technology to back it up is not a 'nice to have', it is a key driver of revenue and customer satisfaction. The financial gains reported by companies which have mature localization strategies are so significant that it could make or break an organization when it scales internationally."

He added: "Surprisingly, despite the ROI businesses know that they can achieve through localization, there is a clear disconnect between this recognition and the actual implementation of mature localization processes. Too many organizations are relying on under-resourced and rudimentary tools for delivering local content and functionality. However, this situation may soon change, as the vast majority of respondents said they intend to leverage AI to enhance their localization efforts."

The report comes as organisations face several challenges in 2025, including the rapid growth of content—expected to increase fivefold over the next three years—cost pressures, higher expectations from customers for culturally relevant experiences, and expanding regulatory requirements around language access.

The full localisation industry report, titled "The revenue impact of localization: Why you can no longer afford to ignore it", sets out to provide stakeholders in product, design, engineering, and marketing roles with strategies to address localisation gaps, support business growth, minimise risk, and retain competitiveness in international markets.