DeepL, the translator platform, recently published a white paper, titled “The executive guide to AI-enabled communication and global retail,” that showed how retailers can leverage AI to drive conversions — especially retailers expanding into the global market. However, there are hurdles to success. One of the biggest challenges for U.S. retailers, for example, is engaging non-English shoppers.
But there are solutions to help.
“As [retailers and brands] use GenAI to personalize content and the shopper experience, more retailers going global or already operating globally are complementing their efforts by translating and/or localizing that content using AI,” the report’s authors said. “The result is standardized communications that reinforces brand values, builds trust, and reduces the likelihood of customer confusion or frustration, and personalized content, which drives higher engagement and purchases.”
Success requires localization, which goes beyond simply translating a website. Localization, according to the research paper, “is the practice of adapting products or content to local languages and cultures. Essential for retailers looking to expand their global reach, content localization makes it possible to reach consumers where they’re most comfortable: in their native language.”
DeepL cited data that backs up the need for localization. The report stated that 75 percent of international online shoppers said they want to buy products in their native language. And investments in GenAI for localization is paying off as 69 percent of retailers cite increases in sales as a result of those investments.
DeepL researchers said in the report that as retail complexity surges and there are more disruptions, it is a challenge for retailers and brands to scale their business globally. However, expanding globally is the only way to drive business growth. “This is not just about overcoming challenges, but strategically positioning companies for sustained success and competitiveness to thrive,” the report’s authors said, adding that deploying this strategy explains why companies are making investments into AI.
“Tools including AI translation software and others enabled by Generative AI (GenAI) are paving the way for streamlined retail operations, smooth multilingual communication, and enhanced customer engagement,” the DeepL report stated. “As the retail industry reinvents itself to keep pace with AI developments, savvy leaders are using AI to maintain a competitive edge. In fact, of those surveyed within enterprise-level ($100 million or more in annual revenue) retail businesses, 78 percent of CEOs and management teams believe AI is fundamental to the future of retail.”
AI is being used to improve operational processes, “by scaling communications between headquarters and international offices,” for example, the report’s authors said, adding that the technology can also boost employee productivity. AI can also help expand personalization efforts “by effectively connecting with prospects and customers around the world.” It can also reduce “the cost and effort to translate and localize their communications and content,” DeepL said.
