How AI Will Shape Global Business Expansion in 2024: Top 4 Trends to Watch

By Pamela Ghosal, Director Brand & Communications, Phrase

In 2024, the translation and localization industry is poised for transformative growth, driven by advancements in AI and large language models (LLMs). This evolution is a response to the increasing global business demands and the explosion of content, which in turn will require localization.

An independent survey of 2,000 business leaders, conducted by Censuswide on behalf of Phrase, revealed how global leaders are thinking about their changing needs when it comes to business expansion. Let’s examine how we expect those needs and recent shifts in technology to drive advances in 2024 and beyond.

AI Will Play a Growing Role in Future-Proofing Business

From a global standpoint, almost three-quarters (73 percent) of business leaders are excited by the potential of AI and large language models (LLMs) for business expansion—and this excitement is well-warranted. AI and LLMs are going to enable global growth in a way never before seen.

It’s quickly becoming a strategic necessity to incorporate AI and LLMs into localization efforts to meet the dynamic demands of global markets and individual customer needs. The pressure is coming from two directions: On one hand, the growing volume of content requiring translation and localization at scale to drive global growth has quickly outpaced the ability of manual, human-powered systems to keep up. On the other, expectations of a more personalized experience among consumers have never been higher. This has resulted in a greater demand for not only communicating in the customer’s language, but also delivering content tailored to the needs of specific segments and individuals.

AI-Driven Localization Will Power Personalized Customer Experiences

Speaking of personalization: At present, over half (61 percent) of businesses globally are not currently using AI to deliver a personalized customer approach. Therein lies an opportunity, and it’s one we expect to see businesses capitalize on in 2024 and the coming years. Just as AI and LLMs are helping enterprises keep up with the growing volume of content being produced as a natural course of business, they’re also helping organizations connect on a deeper level with individual audiences and customers.

In 2024, we will see a wave of innovation sweep the localization industry, leveraging AI and LLMs to create deeply personalized customer experiences, at every touchpoint, across global markets. These technologies will bring a new level of automation to content translation, enabling human localization resources to be dedicated to the most critical assets while smart systems handle the rest—with automated quality checks ensuring fit-for-purpose content at every step.

Leading Enterprises Will Enhance Customer Engagement via Localization

In 2024, business leaders will prioritize real-time communication in ways they haven’t before. Over half (52 percent) of businesses globally are not currently communicating in real time in the language of their customers. Perhaps more importantly, 55% of business leaders confirm their company has lost business due to the lack of a proper translation and localization strategy.

Business leaders understand that localization of content plays a tremendous role in customer acquisition and retention. Customer-centric communications strategies are vital to success across global markets. Historically, reliance on manual localization processes and systems driven largely by human intervention have held back translation speed accuracy and scale, but that’s not going to hold true in 2024 and beyond. With the evolution of localization technology with superior quality measurement, customer engagement in global markets will be greatly enhanced through AI-powered localization and automation

Localization Will Take Center Stage in Broader Business Strategies

Globally, more than three-quarters (79 percent) of business leaders foresee the role of translation and localization evolving in their business strategy over the next three years. This demonstrates just how tuned-in today’s executives are when it comes to the growing importance of localization within business strategy, addressing both current challenges and future strategic shifts. Localization of content will no longer be an afterthought of organizations seeking global expansion. It’s a key factor in driving growth and gaining a competitive edge in areas where others lack the capabilities to connect clearly and authentically with their international customers.

In 2024, the significance of robust AI-powered translation and localization technology for global business success cannot be overstated. As the world continues to evolve into a tightly interconnected global village, effective communication across diverse linguistic and cultural landscapes is paramount. The ability to transcend language barriers is not merely a convenience but a strategic necessity for businesses aiming to thrive on the global stage.

Tags: AI