Why is the Localization Industry So Difficult?

The localization industry, like many others, is very competitive. There are many translation and localization companies, and the number of customers in need of these services is not increasing. However, these are not the only problems in the industry.

Enormnus competition in the localization industry

In addition to the enormous competition (there are thousands of companies worldwide that deal with localization in the broadest sense), the main threat comes from AI. Artificial intelligence has optimized these processes significantly, so customers can pay less for these services.

The result is that there is no longer a need for so many translators, localization engineers, DTP specialists and other experts involved in the industry. Artificial intelligence can do most of their work. This has had a huge impact on the labor market. Today, you can find hundreds of job seekers on LinkedIn, for example. Rates have plummeted, and translators and other specialists have a choice: accept these conditions or change industries. This is very difficult and painful for many. Today, thousands of people respond to any ad that appears on the aforementioned portal. Why is this? Well, because their earnings are tragic and they try to grab every possible opportunity to stay afloat.

Humiliating wages

In addition, in the age of remote working, hiring an employee for humiliating wages is no longer a problem for large localization companies.

There is another fact worth noting. Apart from the fact that wages are not increasing or are even falling, most countries are struggling with inflation of several percent. In addition, the tax burden, pension insurance and other costs that the self-employed have to bear are increasing. Because self-employment is currently the most desirable form of cooperation for large localization companies.

The truth is that the localization industry is declining very slowly. Many companies downplay this fact (consciously or not) by saying that in the age of AI, everything can be optimized, accelerated, costs reduced, and that thanks to AI, things will only get better. This is partly true, but there is also another side to the coin. Customers who order services from localization companies see it too, so why should they pay for something that artificial intelligence can do for them for little money or even for free? Why pay localization companies for intermediation?

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I realize that I am simplifying some things a bit. Many people will accuse me of writing about something I know nothing about. But I see how it looks because I have been involved in this industry for many years. There are fewer and fewer specialists on the market who are committed to this industry. Many are changing industries in the hope that AI has not yet arrived there or will not arrive there too quickly. But what will the future be like? It is difficult to predict today.

The above text only concerns the localization industry, but the problem also affects many other branches.
And how do you feel artificial intelligence affects your work? Do you feel threatened or are you considering changing industries?