Localization teams are solving some of the most complex problems in AI today. They’re addressing bias, hallucinations, cultural nuance, quality assurance, and interoperability across dozens or hundreds of languages and business applications. Last week, I was in beautiful Monterey, California, for the LocWorld54 conference. I’m still reflecting on the incredible level of technical insights, innovation, and passion that I saw.

For decades, B2B companies have treated localization as a cost center. These firms saw localization as an operational necessity to translate words, keep websites up to date, and support global product launches. However, that outdated view doesn’t hold up — much like IT evolved from technical support in the 1990s to a strategic powerhouse in the 2000s and 2010s, businesses need to evolve localization in the age of AI. Buyers who are used to personalized interactions in their personal lives aren’t willing to accept any less from business interactions. We need to get with the program. However, moving a highly technical function into a strategic role isn’t easy.

LocWorld54’s Three Themes: Power, Complexity, And Potential

Localization experts aren’t just keeping up with AI — they’re leading the way. More than that, they’re doing the grunt work of making AI work at scale. Throughout the sessions, and in lively conversations in the hallways and vendor booths, they demonstrated how localization AI is:

  • Driving practical innovation that could benefit the entire business. Technical sessions like “How to Make an LLM Reason Like a Linguist” and “Towards Autonomous AI Agents in a Multilingual Enterprise” drew big crowds. People talked about how to set the right context window and optimize human oversight (aka human in the loop). They compared different approaches to helping AI catch contextual nuances and flag issues at scale across languages. “SPA-RAG: A Smarter Way to Validate and Fix Terminology in AI Workflows” introduced a special-purpose algorithm form of retrieval-augmented generation (SPA-RAG) that invokes LLMs only where it adds value. Improving quality and efficiency while reducing waste is definitely something I want to know more about.
  • Not plug and play, and businesses need to take complexity seriously. If you think localization AI is “set it and forget it,” think again. All AI practitioners know about AI’s biases, hallucinations, and uneven performance. But they don’t always realize that models trained in and optimized for English cause additional problems. Sessions such as “Evaluating Generative AI Beyond Comprehension,” “The Role of Locally Relevant Content in Evaluating Multilingual LLMs,” and “The Hidden Costs of English-Only AI” addressed these hurdles. Meanwhile, sessions like “Language Ops: Operationalizing Enterprise AI Translation at Scale,” “Ask Better Questions: Practicing Solutions Design in a Complex World,” and “The AI Maturity Journey” offered practical advice on change management.
  • Opening doors to new, largely untapped markets. One of the most inspiring moments of LocWorld54 was Sherriff Issaka’s win at the Process Innovation Challenge. His African Language Labs’ Mansa LLM, designed to provide contextual translation for 40+ African languages, drew thunderous applause. With 50+ countries, 1.5 billion people, and over 2,000 languages (many of which don’t have written forms), Africa is a region with unique challenges, but also unparalleled opportunities. In another session, Issaka joined Canva’s Celine Halpert to talk about expanding market reach with offerings that feel truly local. It was a powerful reminder that localization — and business — isn’t just about getting a bigger slice of the pie. It’s about growing the pie for everyone.

Business Leaders Need To Drop The Scarcity Mindset And Use The Resources In Front Of Them

Localization is ready for its moment. For decades, businesses have approached localization with a scarcity mindset, focusing on a handful of major languages and limiting it to the most critical customer touchpoints. At LocWorld54, it was clear that AI capabilities are flipping that paradigm on its head. Universal localization in dozens or hundreds of languages is within reach.

But this shift comes with challenges. The power of AI creates a false impression of simplicity, and customers aren’t disposed to trust genAI. Less than half of US consumers trust the information it provides. Without skilled direction, businesses risk costly mistakes. Poor translations and cultural missteps affect brand, reputation, and customer safety. Localization is a highly technical field populated by skilled professionals who understand the tools and nuances of language. Unfortunately, years of limited scope have left them working in isolation with an inside-out focus on their own processes.

Smart business leaders will look beyond localization’s traditional role and see it for what it truly is: a source of enterprise-wide innovation and growth. Accordingly, they will uplevel their localization teams with the sponsorship, resources, and training they need to engage at a strategic level — and tap their expertise to inform AI initiatives and governance across the business.