Could you give us a bird’s-eye view of the language technology industry and where you see it heading?
Although I’ve become relatively good at reporting on what’s happening in language technology, I have never been a visionary. Could I have predicted how ChatGPT would change our lives? Not in the slightest! I did think that something like DeepSeek would make the news, but I still can’t foresee its long-term impact.
In 2023, Nimdzi created the first version of its Language AI Alphabet, which aimed to bring clarity on what is meant by LLM and GenAI, and the relationship between them (see Figure 3). With the neck-breaking evolution and adoption of core AI technologies, we soon had to update this research. The speed at which language technologies are developed is only increasing, and we expect novel categories, architectures, and tools to surface in 2025 and beyond. And we’ll have to revisit the Language AI Alphabet for updates again.
What is certain, though: Language technology solutions and products will continue to evolve. Moreover, the hype around LLM solutions triggered a new wave of investment into language technology and brought language technologies into the spotlight at the executive level. Both established companies and new language technology businesses are aiming to enhance, replace, and create language tools and workflows using AI. However, the democratization and overall accessibility of language technology, largely due to “bigtech” companies releasing similar solutions, may threaten the survival of many language AI startups.
We can also expect that, once the AI hype cools down, the “AI” prefix in company names and value propositions, now considered almost obligatory, will be dropped — just as it happened before with many other developments (remember “cloud”?).
We’ve been talking for years about the place of human labor as AI technologies continue to develop. Do you think we’re gaining clearer insights into where that balance may settle?
In my opinion, human talent in the language industry is irreplaceable. And at the same time, new tasks and roles are being created for humans. In particular, language technology providers and translation buyers may not have all the in-house expertise needed to lead AI experiments (and measure the significance of the achieved productivity and quality gains). How much and what needs to be edited? This is yet to be determined. Not to mention setting the whole experimental background, be it creating results-oriented workflows, evaluation metrics, and benchmarks; checking the appropriateness of LLM outputs for particular use cases and content types; training AI agents; and much, much more.
A subsidiary factor in this conversation is quality. How can translation quality be assessed, and how does language technology influence the process of achieving the desired quality?
With AI of choice at hand, businesses now have a complex task to identify whether there are significant gains in productivity for their particular use cases and verticals. And productivity in this case is a function of quality. When assessing AI translation quality in the LSP world, people often talk about the same quality metrics that apply when evaluating human translation services (accuracy, fluency, style, consistency, domain-specific terminology, turnaround time, etc.).
In the language technology world, metrics like BLEU (Bilingual Evaluation Understudy), METEOR (Metric for Evaluation of Translation with Explicit ORdering), TER (Translation Edit Rate), chrF (Character n-gram F-score), and hLEPOR (hybrid Language Evaluation of Precision, Order, and Recall) and custom in-house metrics are used to evaluate machine translation (MT) quality, also helping to adjust the training of MT engines to improve over time. For LLMs, metrics choice depends on the goal. For example, BLEU or chrF can be applied for quick checks; BERTScore (a computationally heavier metric using contextual embeddings from models like BERT, which compares semantic similarity between translation and the reference at a “deeper” level) or COMET (Crosslingual Optimized Metric for Evaluation of Translation) for meaning; and certainly, human evaluation for everything. When evaluating LLM output, researchers also use pass/fail tests.
All in all, automatic metrics are useful for quicker and large-scale evaluations, human evaluation is used for assessing translations in-depth, and then there are newer methods that attempt to combine the best of both worlds, leveraging pretrained models for a deeper semantic understanding.
Incorporating human intervention is crucial not only during stages like editing or final review for balancing speed with quality but also when developing clear metrics and benchmarks of AI-powered translation, as well as estimating its actual return on investment.
What do you see as the greatest opportunities for language technology and the broader industry in this tumultuous time? And what are the greatest challenges?
One of the most significant challenges language technology providers face today is effectively selling their sophisticated technology products. The democratization of language technology has led to a market saturated with options, making it increasingly difficult for providers to differentiate themselves and convince potential buyers of their product’s unique value proposition.
Language technology companies must adopt innovative approaches not only in their development but also in their targeted marketing campaigns, which should highlight specific use cases and benefits, as well as in building strategic partnerships with complementary technology providers to offer bundled solutions. We see this strategy both in the integrators and connectors space and in the sector’s reactivated M&A.
Ultimately, success in the market will depend on a provider’s ability to adapt to the changing landscape and develop innovative sales and marketing strategies that resonate with potential buyers. And it’s not easy, if you ask me — which is proven by the fact that, at Nimdzi, we see more and more language technology providers requesting consultancy and help in expansion and growth.
Is there anything else you want to add?
I’d like to use this opportunity to express my gratitude to the Nimdzi team, particularly Renato Beninatto and Josef Kubovsky for inspiring me to do what I want at work (how lucky am I?), Laszlo Varga for his professional review and the magic goblet of insights, and most importantly, Aleksey Schipack, who made the online tracker possible. Aleksey usually stays behind the curtain of Nimdzi work, but without him, there wouldn’t be the Nimdzi Language Technology Radar as we know it.
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