The future of AI in e-commerce localization. What to prepare for, according to Petr Sedláček?

Translation vs. localization

While translation is the linguistic conversion of content from one language to another, in the case of localization we are talking about a deeper adaptation of content - from linguistic nuances to cultural and social aspects. This adaptation ensures that the content not only communicates but also resonates with the target audience. If you have a well-localized e-shop, you won't offer goods in Czech units of measurement (without the possibility of conversion) in Anglo-Saxon markets"In addition, SEO rules and strategies can change for different markets, but AI will take care of that for you," Sedláček adds.

AI in localization automatically accounts for changing SEO rules and different strategies for specific markets.

The impact of AI on localization: the possibility of translation evaluation

"In recent years, there have been some really revolutionary changes brought by artificial intelligence (AI) technologies, especially in the field of automatic translation. What was once considered an impractical dream is now a reality thanks to AI translation. Language boundaries are being crossed with impressive ease and the gates of the global marketplace are opening for brands and businesses of all sizes. Thanks to advanced algorithms and deep learning, AI not only increases the speed and accuracy of translations but also makes it possible to capture the nuances and contextual meanings that are key to authentic communication," says Sedlacek.  

He considers AI's entry into the field of translation quality assessment to be crucial:"The fundamental question remains , where automatic translation is good and not. There has been major progress recently, too, as AI has entered the field of automatic translation quality assessment. AI now doesn't only allow for efficient checking and correction of translation but also provides tools for quality assessment. This makes working with translations much easier, as AI can identify potential problems and suggest improvements. E-commerce platforms can thus easily translate their content into many languages while maintaining the original tone of the text and stylistic subtleties. In an era of globalization where competition never sleeps, the quality and efficiency of AI-powered automatic translation are thus becoming invaluable tools for anyone looking to succeed in the international e-commerce market," he explains.

AI has entered into the quality assessment of automatic translation and allows for translation checks and corrections.

Prioritization of resources

Do you know the Pareto principle? Simply put, it's the 80/20 rule. Vilfredo Pareto, an Italian economist, formulated that 80% of the effects come from 20% of the causes. In practice, he meant that, for example, 80% of profits come from only 20% of products. In e-commerce, we can pull this small spectrum of causes down to a more efficient allocation of resources. If you successfully localize the top products that generate the majority of sales, it allows you to focus on products with the greatest potential for global markets. This way, you spend resources efficiently and purposefully in the places where they generate profit.

Data-driven approach helps in decision making

Today, AI can free your hands so you can focus on the areas that still deserve your attention. The goal is to work as efficiently as possible. When you're using AI-derived data to make decisions, you're not looking for a needle in a haystack, you're focusing on specific areas that need improvement. AI can generate valuable data, for example, on the quality of the translations we work with in the localization process. E-shops can thus focus human resources on specific areas requiring manual corrections in the texts, for example.

AI also helps e-tailers tobetter understand demand patterns and manage inventory more efficiently. It can evaluate customer behavior and advise strategies on how to manage it. The technology also enables e-commerce stores to predict trends and respond to changing customer needs.

The role of AI in the global e-commerce market

In the global e-commerce market, AI makes it easier to overcome the complexities of international trade. Effective localization strategies, powered by AI, help e-tailers adapt to different monetary, logistical and cultural conditions in different markets. The role of AI is growing and crucial in this regard. It also provides us with important information leading, for example, to the correct targeting of marketing campaigns or the setting of pricing policies based on competitor price analysis. AI significantly helps to open up new opportunities for e-shops, which is why they are starting to expand in a big way. "In addition, it turns out that e-shops are cautiously not entering just one market, but are immediately doing business in five or more foreign markets. The whole e-commerce sphere is globalising very quickly. This trend is also helped by large, easy-to-use platforms like Shopify, etc." Sedláček sums up.

In the era of globalization, e-commerce stores are commonly entering five or more foreign markets thanks to AI.

Trends in AI and localization

What trends in localization can we expect in the case of AI? It seems that AI will continue to offer advanced localization tools, allowing e-tailers to even better tailor their products and services for global markets. This area holds huge potential, and it's developing every day. And what area of development has caught Peter Sedlacek's attention? "For example, the trend of using artificial intelligence (AI) to analyze product reviews from e-shops is interesting. This opens up new horizons in the optimization of product descriptions. AI tools can go through thousands of reviews and ratings from customers, identify keywords and topics that are important to them, and thus reveal the strengths and weaknesses of products. This process not only allows respond quickly to customer comments, but also customizes product descriptions so that they better reflect the needs and wants of the target group. As a result, the relevance and appeal of the products is increased, leading to a better user experience and potentially more sales."

One of the trends is the use of AI to analyze product reviews on e-commerce sites.

AI offers e-tailers a helping hand

Automation and AI allow e-tailers to focus on the parts of the location process where human intervention is most needed. This way, people can devote their time and skills to different activities that either require special attention or can give an e-shop a crucial edge over the competition. This approach not only improves the quality of localization, but also makes efficient use of human resources for strategic tasks that AI cannot fully cover.

With the help of AI, e-commerce business is becoming more dynamic and customer-centric, which is the key to success in today's competitive era. Even so, it's important to remember that AI is still not infallible. Human intervention, at least in the form of a check, remains essential when using AI, especially in key areas such as legal documents or communicated marketing content. These areas require a deeper understanding of the local context, which AI may not fully capture.

LOCO Vision

At LOCO, we are constantly innovating and expanding the capabilities of our platform. LOCO is essentially a PIM for product localization that allows e-shops to efficiently localize products and services for different markets. LOCO will smartly guide you through the localization process and show you where to save up to 70% on costs. At each step, you'll know how you're doing, which products are already localized and which need to be manually corrected. Of course, you can optimize them for SEO or generate special descriptions for foreign marketplaces. The final export automation ensures that the finished products are uploaded back to the e-shop in a few clicks. Need help expanding or fine-tuning your existing process? Contact us at loco@expan.do. For the first 50 products, try out LOCO for free.

The combination of AI and human intervention in localization is becoming crucial for success in the international e-commerce environment. Effective use of these technologies and resources allows e-commerce stores to not only save time and costs but also gain a competitive advantage in the global marketplace. Stay one step ahead and set the direction with us, be LOCO.

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