Guest Articles

Localization 2025: The Rise of Data, ROI, and Specialization

In mid-2025, localization is no longer niche. Data, ROI, and specialization now define how enterprises deploy scalable, AI-powered multilingual solutions.

Advances in large language models (LLMs) and artificial intelligence (AI) fundamentally reshape how content is produced and consumed. The democratization of AI through tools like ChatGPT is only the beginning. By 2025, the innovations of recent years will transition and mature. Localization will no longer be a specialized, standalone function but a widespread, practical feature woven into everyday business operations.

As businesses move AI tools from experimentation to production, the complexities and costs of scaling these technologies are crystal clear. Running thousands of automated tasks across departments demands more than a capable model. It requires infrastructure, staffing, and a clear alignment with measurable business goals. Companies can no longer afford to approach AI with vague expectations. Instead, they must define specific objectives and evaluate outcomes rigorously. ROI is no longer an abstract question; it’s a mandate for decision-making.

Amid this shift, the role of data has come into sharp focus. For years, the industry was captivated by the capabilities of LLMs, but the real differentiator lies in the data that powers these tools. Models trained on vast general datasets can’t deliver the precision businesses need without customization. Enterprises that invest in refining their linguistic assets and other proprietary data will have a decisive competitive edge. Customization isn’t just a feature—it’s the pathway to making AI outputs truly valuable.

At the same time, the trend toward specialization in AI is accelerating. The massive, general-purpose models that have dominated headlines are being replaced by smaller, task-specific ones that are more efficient and cost-effective for enterprise use. These specialized models are not only lowering barriers to entry but also enabling businesses to deploy AI in areas where it was previously impractical. For localization, this shift means greater accessibility to tools that can deliver precise, context-aware translations at scale.

As these developments unfold, localization is poised to become ubiquitous. Advances in automation and AI are transforming it from a niche process into an integrated feature of everyday digital experiences. Multilingual functionality will be embedded directly into apps, software, and platforms, enabling real-time localization that feels seamless to users. Whether it’s an automatic translation in a messaging app or a grammar tool that suggests localized alternatives, the technology is becoming invisible and indispensable.

Thriving businesses will approach AI with clarity and purpose. Success isn’t just about adopting the latest tools; it’s about understanding where they can make the most impact. Organizations must take a comprehensive view of their processes, identifying the inefficiencies that can be automated and the new opportunities AI makes possible. For localization, this could mean achieving real-time multilingual engagement or offering hyperpersonalized content tailored to individual users—a feat that was unimaginable just a few years ago.

The localization industry is transforming right before our eyes. As data, ROI, and specialization take center stage and captivate our strategic and operational attention, the focus shifts from what AI can do in theory to what it can deliver in practice. For businesses ready to adapt for real, localization will no longer be an afterthought but a committed strategic advantage—an essential component of reaching and resonating with global audiences for the long term.

Simone Bohnenberger-Rich

Simone Bohnenberger-Rich is the Chief Product Officer at Phrase, a leader in cloud-based localization technology. She joined in 2023, bringing extensive experience from her roles in AI and product leadership, including a notable tenure at Eigen Technologies as Senior Vice President of Product. At Eigen, she focused on AI and machine learning for natural language processing, aiding the company's growth from startup to successful B2B entity. Previously, Simone was a consultant at Monitor Deloitte, developing growth strategies in data and technology, and worked at McKinsey & Company and RBS in analytical roles. She holds a PhD in International Relations from the London School of Economics, supporting her understanding of global market dynamics.

Related posts

How AI can predict natural disasters

Elliott Hoffman

Mastering Cloud Incident Response: A Proactive Approach to Cybersecurity in ASEAN

Evan Davidson

To Build Successful ML, You Have to Fail Fast and Early

Victor Thu