In an increasingly interconnected world, the importance of language skills cannot be overstated, particularly for businesses aiming for global competitiveness. Recent insights from experts and research highlight the critical role that English language proficiency and advanced language AI tools play in overcoming operational challenges faced by enterprises.
On May 8, 2025, Pushkar Saran, the executive director of ETS for institutional programs in Southeast Asia (SEA), emphasized that enhancing workers' English language skills is vital for boosting the global competitiveness of SEA employers. He stated, "For enhancing productivity and all, English is often a very common denominator in trade, digital services and multinational collaboration." Saran pointed to the global rise of artificial intelligence (AI) technologies as a key reason why English proficiency is becoming increasingly necessary for workers in the region.
As businesses strive to adapt to this reality, Microsoft Digital is at the forefront of innovation, working to enhance the experiences of both employees and external customers. The company, often referred to as "Customer Zero," is the first to use and test its own products, such as Microsoft 365 Copilot, ensuring they meet high standards before reaching the market. However, Microsoft has encountered significant language-related challenges with its technology products, particularly with new technologies like Copilot.
Language-related issues have emerged as a significant challenge globally, especially when introducing new technologies. Among these challenges are incoherent meeting transcripts and recaps when switching between languages, misidentification of languages and dialects, and degraded performance and translation quality in languages other than English. In Japan, for instance, less than 30% of the population can speak English, and less than 10% are fluent speakers, highlighting the need for reliable localization services.
The generative AI market in Japan is projected to reach approximately $1.31 billion in 2025, with a compound annual growth rate of 46.54% from 2024 to 2030. Japanese companies are increasingly leveraging generative AI to streamline operations, improve efficiency, and deliver innovative products and services. Despite this promising market opportunity, Microsoft’s Copilot faces several challenges in Japan, including a lower internal Net Satisfaction (NSAT) score compared to English-speaking regions.
According to Microsoft, the key challenges for Copilot in Japan include the complexity of collaboration, user experience and quality of responses, linguistic complexity, and performance reliability. The involvement of multiple teams across various organizations in localization efforts has created confusion over prioritization and led to duplication of efforts. Customers have expressed dissatisfaction with the quality and accuracy of Copilot's responses in Japanese, noting that many functions available in English are not yet available in Japanese.
Microsoft is actively collecting feedback through various channels and logging issues in a customized internal tool to address these challenges. The company is also implementing strategies to improve localization support for Copilot. These strategies include creating a complete overview of localization efforts, developing a localization playbook, enhancing linguistic accuracy, involving the Customer Zero team earlier in the product development process, and improving translation quality.
Amidst these developments, a new survey from DeepL, a leading global language AI company, revealed that nearly 70% of US enterprises face unexpected operational challenges daily due to language barriers. The research surveyed over 1,000 business decision-makers at US companies with 500+ employees, all of which either have plans to expand globally or already have a global presence.
The survey found that 61% of leaders admitted they have underestimated the impact of these barriers on their business. Language-related challenges have forced 61% of enterprise leaders to delay or limit their global expansion plans, while nearly 40% reported annual costs between $500,000 and $2 million due to these challenges.
Language AI is rapidly becoming the go-to solution for enterprises tackling language and communication challenges. Among the businesses surveyed, 59% are currently utilizing Language AI tools within their organization, with 96% considering using AI tools to mitigate language barriers either within the next year (75%) or in over a year from now (21%). A staggering 95% believe that AI-driven language tools will be essential for global operations within the next five years.
Jarek Kutylowski, CEO and Founder of DeepL, commented on the findings, stating, "Many US companies assume that English is enough for business communication, but that's a risky mindset – 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." He further noted that overlooking language barriers can lead to delays in global expansion and damage to brand reputation.
Key research findings from the DeepL survey indicate that language barriers pose a significant challenge for US enterprises. About 62% of surveyed leaders encounter language-related challenges at least once a week, and 79% face them at least once a month. The financial impact of these challenges is considerable, affecting collaboration, operational costs, and overall business growth.
As the demand for Language AI continues to grow, enterprises are increasingly recognizing the need for specialized AI tools over general-purpose ones. Respondents showed a clear preference for specialized AI tools, with quality, time savings, and ease of integration being the top factors driving adoption. DeepL has become the preferred specialized Language AI platform for businesses worldwide, with a rapidly expanding customer network that includes industry leaders.
In conclusion, as global businesses navigate the complexities of language barriers, enhancing English language skills and adopting advanced language AI tools will be pivotal for success. With the right strategies and technologies in place, companies can better position themselves to thrive in the global marketplace.
