Lokalise’s survey of 500 business leaders from Europe and North America reveals over 55% of businesses are already using AI for localization 42% say AI will handle most translation tasks, and 46% say AI will run all localization workflows within a year 81% of companies say they are likely to implement hybrid localization approaches that combine AI with human review in the coming year 63% acknowledge AI improves speed but still requires human review 74% of companies say that localization accounts for more than 26% of their revenue growth, with 11% saying it accounts for more than half New revenue growth potential is the primary driving force behind increased localization (55%), followed by meeting customer demand in specific regions (53%) and enhancing customer experience (52%) As global companies continue to struggle to deliver on growing consumer demands for personalized, locally relevant content that aligns with their cultural tone and language, a comprehensive industry report released today reveals how AI has come to play a transformative role in localization.
The study, which surveyed over 500 professionals at medium-large companies across North America and Europe, reveals that over half (55%) of businesses are already using AI for the localization of lower-priority content. A further 63% state that while AI is helping to speed up translations it requires human oversight.
Key AI localization use cases cited include website or app content (52%), marketing materials (48%), regulatory documents (48%), and internal documentation (46%).
Looking ahead, 81% of organizations say they are likely to adopt hybrid localization approaches which combine AI and human review within the next year, with 40% of high-maturity companies very likely to do so. Asked about how AI might impact localization within the next year, 46% say they think AI will run most localization workflows and 42% believe AI will handle most translation tasks.
This comes as the study also uncovers localization as a critical driver for business success with 74% of companies saying that localization accounts for more than 26% of their revenue growth. A further 11% say it accounts for more than half.
Aside from significantly boosting revenue growth, customer experience was identified as a key benefit with 51% of survey respondents stating it improved satisfaction. 47% reported that it strengthened inclusivity and accessibility, and 45% stated that it strengthened their brand’s global presence.
Yet despite recognizing the importance of localization, over two-thirds of organizations report having localization maturity gaps* with 43% still relying on spreadsheets to manage complex localization processes, leading to delays, errors and collaboration challenges.
Magnus Slind-Näslund, Chief Technology Officer at Lokalise, said: “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.
“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 at a critical time as organizations face mounting challenges in 2025, including exponential content growth (expected to increase 5 fold in the next three years), cost pressures, higher customer expectations for culturally relevant experiences, and expanding language access regulations.
The 2025 localization industry report titled “The revenue impact of localization: Why you can no longer afford to ignore it” equips stakeholders across product, design, engineering, and marketing teams with strategies to close localization gaps, drive growth, reduce risk, and maintain competitive advantage in global markets.
Notes to Editor
*Lokalise categorised the localization capability of respondents based on the maturity of their strategies, processes and use of technology. Organizations identified as ‘low maturity’ have non-existent strategies and ad hoc processes; ‘medium maturity’ have structured, recurring processes and documentation; and ‘high maturity’ have fully optimized and transparent workflows integrated into business processes.
Larger enterprises (with $100M–$1B in revenue) show a much higher localization maturity, with nearly half reporting fully optimized and well-integrated processes. Companies with higher revenue are more likely to invest in sophisticated localization processes, even if they are not expanding into new markets.
About Lokalise
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