Foreword
Will Artificial Intelligence still be the centre of discussion this new year?
Yes, it will. Not surprisingly, AI continues to be a strong force in the global market. Analysts see 2025 as the year when AI must start proving its return on investment (ROI) and become part of long-term business strategies instead of stand-alone services. Likewise, long-awaited AI regulations in the EU start taking effect and will offer a route for a more transparent, ethical, and sustainable AI.
In the localization industry, particularly, AI also seems to be a drive for growth; we’re poised to see more advancements in machine translation, the rise of hybrid workflows, and specialised areas like video game localization.
See below our 5 localization industry trends for 2025!
1. The Localization Market Keeps Rising up
Experts predict that the localization industry will continue increasing its revenue this year. Several factors are the drivers of this growth:
- Increased globalization of businesses.
- A rise in e-commerce.
- The demand for localized content that resonates with diverse audiences.
- The AI fever.
This last one has plagued the headlines for the last couple of years so it’s a force to be reckoned with. One of the main benefits of machine translation (MT) and now AI translation is their scalability, which promises to take business to higher levels. The growth of the MT market and improvements in LLMs will make it possible for AI translation to enter new markets and offer more services.
2. MT and Hybrid Workflows are Here to Stay
Machine translation continues its journey in search of enhanced accuracy. In 2025, we can expect significant improvements in translation quality driven by AI technologies. One of those developments is the use of Large Language Models (LLMs) in translation workflows, CAT tools, and MT.
In 2024, companies like RWS, DeepL and Translated were already betting on integrating LLMs into MT systems and translation workflows. However, this year, we will see more innovations and regular workflows with AI as research and experimentation come to fruition. The integrations vary from quality estimation to fully automated translation workflows.
As the quality of MT gets better, combining human expertise with machine translation becomes increasingly common. We’re talking about “hybrid workflows” with machine translation post-editing (MTPE). In this way, businesses can achieve faster turnaround times without sacrificing quality.
3. The New Rules of the Game
AI safety and ethical use have been one of the biggest concerns when integrating AI into the translation and localization industry. Fortunately, the the EU Artificial Intelligence Act (AI Act) is addressing these concerns. This is the first AI regulation so far, which sets a precedent for the safe implementation and use of AI.
Although effective from August 2024, early 2025 is when some providers must start proving compliance with these regulations. Times set to comply with these regulations depend on the risk models pose for their users. Risks vary from prohibited to minimal risk.
On the other hand, the new ISO 5060:2024 standard focuses on the quality evaluation of translation outputs, regardless of whether human or machine-produced. These standards take into account MT outputs and PE and promise to change the way translation is evaluated. No doubt more regulations will follow as AI becomes the new norm. The United States, for instance, has yet to take a stand regarding AI.
Source: Milengo.com
4. More Inclusive Services and TaaF
Another important regulation affecting the localization industry in 2025 is the EU Accessibility Act. Although it has been in place for several years, this regulation dictates that by June 2025 all companies trading in the EU must comply with accessibility standards. We have seen an increase in accessibility features and developments in the last few years with subtitling, voice-over, text-to-speech technologies, etc. However, this year will most likely be key for all accessibility-related features.
Following these efforts, we will continue seeing the growth of AI subtitling and dubbing tools, as well as an emerging trend: translation as a feature (TaaF). TaaF appears as an upcoming trend in the software industry where non-language related companies offer AI-powered translation in their apps as part of their product’s features. Integrating translation AI into software means an opening in the localization industry and more demand for different translation services.
5. Multilingual Personalization
In an age where consumers expect tailored experiences, “multilingual personalization” is becoming essential for businesses looking to engage diverse audiences effectively. Hyper-localization will continue to be a trend with companies increasingly focusing on creating personalized content that resonates with users in their native languages.
To implement multilingual personalization strategies successfully, businesses should consider factors such as cultural preferences, regional dialects, and user behaviour. In this scenario, leveraging AI analytics and human cultural insights and creativity is key to delivering tailored experiences.
Expect more developments on this!
More MT mapping and development of low-resource languages. The development of an LLM for Quechua by the University of Georgia seems to pave the road for more systems of low-resource languages.
What Does This Mean for the Video Game Localization Industry?
The gaming industry presents unique challenges and opportunities for localization teams. With gaming expanding globally at an unprecedented rate, there is a growing demand for high-quality localized content that resonates with players from different cultures.
Although MT appears as a powerful ally in supplying this growing demand, the challenges for translating this type of content remain, especially in terms of:
- Language accuracy.
- Adapting cultural content for local audiences.
- Compliance with inclusivity and accessibility regulations.
We will see more efforts aiming to leverage AI translation with human expertise to tackle these issues in game localization. Moreover, other technologies such as AI dubbing, subtitling, and speech-to-text technologies will play an important role in delivering tailored experiences for players around the globe. See our upcoming article about trends in video game localization in 2025 for more about this.
As we look ahead to 2025, the landscape for the translation and localization industry looks hopeful. Key trends such as market growth, advancements in machine translation technologies, hybrid workflows, multilingual personalization, accessibility improvements, and specialized areas like video game localization will be a growth factor that will shape how businesses approach global communication.
The key is carefully and methodically embracing innovation in translation and localization practices.
Stay tuned to see how these trends play out during the year!
