95% of US executives believe Language AI is essential for global business success

US businesses are feeling the effects of underestimating language barriers on a daily basis – and racing to adopt Language AI to help protect their bottom line. 

This is the key finding from new DeepL research that shows 69% of US businesses have had their daily operations compromised by language challenges they didn’t foresee, and 61% have been forced to delay or limit global expansion plans as a result. Indeed, nearly 40% of businesses report annual costs of between $500,000 and $2 million resulting from these issues.

DeepL and Consensuswide surveyed 1,000 decision-makers at US businesses with 500 employees or more. All of these businesses either operate internationally or have growth plans that rely on them doing so. As a result of the language challenges they’ve experienced, 95% believe that AI-driven language tools are an essential investment in the next five years.

The risks of underestimating language barriers

One of the most striking findings of the study is the extent to which businesses had underestimated language barriers’ impact on their ability to grow. In all, 61% of executives admit that the impact of language issues is greater than anticipated, and this rises to 67% for larger businesses of between 1,000 and 1,499 employees. 

“Many US companies assume that English is enough for business communication, but that’s a risky mindset,” explains DeepL CEO Jarek Kutylowski. “The reality is that only 18% of the world speaks English, and even within the US, over 60 million people speak a language other than English at home. As the world becomes more connected, the scope and impact of these issues will only intensify.”

The challenges reported by businesses in the study span IT (54%), customer service (39%) and the ability for internal teams to collaborate (26%). This results in a wide range of business impacts, including increased costs (38%), damage to brand reputation (36%) and compliance issues (31%). And the larger a business gets, the greater the impact that language has; 62% of leaders anticipate that barriers will increase as their companies scale.

The damage to businesses communicating solely in English aligns with findings from CSA Research, whose studies have shown that 72% of consumers would be more likely to buy a product with information in their own language, and 56% feel that obtaining information in their own language is more important than price.

Solving language barriers through specialized Language AI

While business leaders may have underestimated the impact of language barriers previously, an overwhelming majority have a clear idea of how to tackle these issues going forward. 95% of survey participants reported that specialized Language AI tools will be essential for global operations within the next five years – and many are acting far faster. In fact, 75% plan to adopt AI tools for language within the next year.

The race to adopt Language AI solutions aligns with businesses’ broader AI adoption strategies, and their preference for specialized solutions over generic AI models. Of the businesses surveyed, 93% reported already using AI across a range of different functions and they were twice as likely to choose specialized AI tools than general-purpose ones (54% compared to 27%).

How DeepL unlocks international growth potential

Over 200,000 businesses and governments, including half of the Fortune 500, already use DeepL’s Language AI to eliminate friction from international operations and enable global expansion. They include Alza, the e-commerce giant known as the Czech Amazon, which uses DeepL to localize its site for five different European languages, driving 20% annual growth and saving thousands of Euros per month in operating costs. 

Other global enterprises reducing costs and driving growth with DeepL include Harvard Business Publishing, global patisserie manufacturer Brioche Pasquier, multinational electronics company Panasonic Connect and Europe’s largest rail operator, Deutsche Bahn.

Forrester Consulting’s recent Total Economic Impact report explores in detail the benefits of Language AI for organizations operating or expanding globally. It shows that organizations that leverage DeepL achieve a return on investment (ROI) of 345% over three years through efficiency savings and reduced translation costs. It also points to the value of DeepL in improving accessibility, employee morale, and customer service.

Ready to overcome language barriers with DeepL?

Want to understand everything that DeepL can do for your business? We’ve created an in-depth video guide to our Language AI platform that shows all of our DeepL products and features in action. Or contact us for more information!