XTM Localization Predictions 2025
Intro
A successful localization program is one that has a comprehensive understanding of the industry.
Technology, strategies, processes, data… All of these topics are in a state of constant change, and anticipating these changes and trends is what allows companies to stay ahead of the game and gain a competitive advantage over those that don’t.
With that in mind, here are our top three localization predictions and trends for the industry in 2025.
Fear of AI replacing humans in the language industry dies down
Generative AI’s breakout in 2023 undeniably revolutionized the language landscape and the localization industry in particular. The game had changed, and we were seeing the biggest change in the human role in the translation and localization industries since the arrival of machine translation.
Learn how AI technology is transforming translation here.
According to McKinsey’s Global Survey published in 2023, more than one-third of the survey’s respondents have been using AI tools regularly in business functions for less than a year since these came out. This rise in AI use inevitably raised the question of “What now?” for human roles in language activities and if this was the beginning of the end for human-led activities in the industry.
After the hype has died down and the dust has settled a bit, we have started to see concerns with Generative AI, such as:
- The quality of the copy it generates is unsuitable for certain types of content
- Questions on data privacy and intellectual property
- Issues with inherent bias based on the data used for training
Despite the data provided by McKinsey mentioned above, the application of Generative AI is still an unanswered question for many companies, amid the fear of the consequences of publishing AI-generated content of low quality, or the efficiency of extensive post-editing.
In any case, these fears have established that no matter how human-like GenAI can be, and how its “learning time” in comparison with machine translation has been drastically reduced, human input, at any stage of the process, will always be required, whether it has to do with the level quality or applying a simple sanity check.
Therefore, our localization prediction for 2025 will see the conversation turn from “Is AI going to take over our jobs?” to “How can we best work together with AI technology?”. And this is the smart approach we believe will bring in the most success.
“Many times I have heard that AI is going to take over people’s jobs by outperforming humans in various tasks. However, just like spaceships need pilots and heavy mining machinery needs operators, humans will forever be a part of the show, regardless of how powerful the technology shall become.”
Rafał Jaworski
Principal AI Engineer
Hyper-personalization is the new way for global content
The arrival of AI technology has provided the tools for companies to create content at an unprecedented pace and volume. This localization trend for 2025 is reshaping how businesses connect with diverse audiences by tailoring content experiences to individual preferences, behaviors, and cultural nuances.
But mass personalization is nothing new.
According to a study by Bolt, 75% of shoppers would pay more for beauty and skincare products if they got personalized online shopping experiences. However, companies now have the tools to provide this level of personalization at much lower costs and faster speeds.
Our localization prediction for 2025 is that the rise of advanced analytics, artificial intelligence, and data-driven insights is propelling this shift toward hyper-personalization. This allows companies to craft more relevant and resonant messages for their target demographics and, as a result, enhance their brand image.
Which is why hyper-personalization and localization will go hand in hand.
Translation services are no longer confined to mere language conversion. Instead, they now encompass a nuanced understanding of local preferences, idioms, and cultural sensitivities. One localization trend we could see emerge in 2025 is companies investing in localization strategies that go beyond linguistic accuracy, ensuring that content resonates emotionally and culturally with diverse audiences.
Whereas, before, companies communicated with their audiences via email or advertising boards, they can now leverage new technologies such as voice integration, personalized chatbot messages, and highly-targeted geolocated communications.
AI technology is being and will be implemented in marketing emails, and this represents a whole new level of hyper-personalization and revolutionizing outreach strategies. From voice integration and chatbots to data collection and predictive analytics, companies are going to be able to be more engaging than ever before.
As technology continues to evolve, the ability to create meaningful, individualized content experiences will become increasingly pivotal for companies seeking to gain a competitive advantage and enhance their brand image globally.
Agile models and data usage are now a must and no longer a nice-to-have to stay globally competitive
We’ve always talked about the need to have agile localization models and the many benefits that they bring.
We’ve also talked about the importance of data-driven decisions in your localization program, and how this allows companies to make better-informed decisions that boost cost-efficiency.
Our localization prediction for 2025 is that being agile and data-driven is no longer an option for companies if they wish to remain competitive, but rather an imperative need. With the increasing amount of time-sensitive digital content that is consumed globally, having it localized on time can make a considerable difference in successful market penetration and user adoption.
Learn how we leverage insights and data with our reporting tools.
Practical AI implementation and workflow integration
In 2025, businesses will prioritize the practical integration of AI into their localization workflows. This shift moves beyond theoretical AI capabilities to tangible applications that streamline content creation, translation, and delivery. AI-driven tools will automate repetitive tasks, reduce turnaround times, and support linguists by suggesting contextually accurate translations. Companies adopting these tools will experience improved efficiency and reduced operational costs.
According to a Deloitte survey, 73% of companies investing in AI have reported significant operational improvements. Effective AI integration empowers teams to focus on creative and strategic localization efforts while AI handles routine tasks, ensuring consistent and high-quality content delivery.
Workforce transformation and upskilling
The growing role of AI in localization necessitates workforce transformation. In 2025, organizations will invest in upskilling their teams to complement AI capabilities. This includes training linguists, project managers, and content creators in AI tools, data interpretation, and advanced technology management. Upskilling initiatives prepare teams to collaborate effectively with AI, fostering innovation and adaptability.
A World Economic Forum report projects that by 2025, 50% of all employees will need reskilling due to technological advancements. Companies prioritizing employee development will bridge the gap between human expertise and AI efficiency, resulting in stronger localization outcomes and sustained growth.
Hyper-personalization of multilingual content
In 2025, hyper-personalization will redefine multilingual content strategies. Brands will leverage AI-driven insights to deliver tailored messages that resonate with diverse cultural and linguistic audiences. This approach goes beyond language translation, focusing on cultural context, local preferences, and real-time user behavior. Companies utilizing hyper-personalization will build stronger customer connections and increase engagement.
A study by Epsilon shows that 80% of consumers are more likely to make a purchase when brands offer personalized experiences. Integrating hyper-personalization into localization efforts enables brands to engage global audiences with content that feels relevant and authentic.
Enhanced focus on data security and ethics
Data security and ethical AI usage will be at the forefront of localization strategies in 2025. With the growing use of AI and data-driven tools, companies must prioritize protecting sensitive information and maintaining ethical practices.
Implementing strict data governance policies and transparent AI models will be essential for building trust with global audiences. A PwC survey found that 85% of consumers will not engage with companies if they have concerns about data security. Organizations focusing on data protection and ethical standards will foster trust and safeguard their reputation while delivering localized content across markets.
30 January 2025 – 4PM CET
What’s next for localization in 2025? Join our webinar
In summary, the trajectory of localization points toward a future defined by strategic integration of advanced technologies, particularly artificial intelligence. This evolution necessitates a shift in focus from apprehension regarding technological displacement to a proactive exploration of collaborative potential between human expertise & AI capabilities.
Key trends include a heightened emphasis on hyper-personalization, driven by data analytics & AI-powered insights, enabling businesses to forge deeper connections with diverse audiences through culturally resonant content. Concurrently, agile methodologies & data-driven decision-making are becoming indispensable for maintaining global competitiveness in an environment characterized by rapid content consumption.
Practical implementation of AI within localization workflows, coupled with strategic workforce development focused on upskilling in relevant technologies, will be crucial for optimizing efficiency & ensuring high-quality content delivery. Moreover, a steadfast commitment to data security & ethical AI practices will be paramount for building trust & safeguarding brand reputation in the global marketplace.
Platforms such as XTM Cloud offer integrated solutions for managing the complexities of this evolving landscape, providing centralized control over translation workflows, project management, & other crucial aspects of the localization process, thereby facilitating adaptation to the dynamic demands of the international market.
Don’t take our word for it: schedule a demo of XTM Cloud today.