Will Language Service Providers Finally Change Pricing Models in 2025


Slator

Uploaded on Dec 30, 2024

2024 ends with a second Trump administration about to take office in the United States. Trump’s election campaign made immigration a central issue and promised stricter immigration controls. As voters went to the polls, the 2023 American Community Survey (ACS) data release revealed a significant increase in the number of non-English speakers in the US, reaching 71 million or 21% of the country’s population. https://slator.com/will-language-service-providers-finally-change-pricing-models-in-2025/

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Will Language Service Providers Finally Change Pricing Models in 2025

WILL LANGUAGE SERVICE PROVI DERS FINALLY CHANGE PRICING MODELS IN 2025? www.slator.com Introduction 2024 closes with a second Trump administration set to begin in the US. Immigration was at the center of Trump's presidential campaign and promised more draconian immigration controls. Meanwhile, as Americans voted, the long-awaited 2023 American Community Survey, or ACS, data reveal that the number of those who do not speak English increased by 71 million and now stands at 21% of the US population. www.slator.com In fact, studies show that the surge in the foreign- born population reached a rate not seen since 1910. All the while, the Department of Homeland Security (DHS) also increased deportations to the highest levels in over a decade. These are conflicting trends, but constitutionally speaking, language access rights are unlikely to change under Trump and will continue to be a strong demand driver for language services. However, implementation of AI translation by non-language organizations and translation-as-a-feature (TaaF) add challenges and uncertainty to an otherwise strong 2025 business outlook. www.slator.com Impact of Trump’s Re-Election on Demand for US Language Access Poll on November 15, 2024. Vote Count: Services 48 www.slator.com AI Speech Translation Fever There were constant mentions of AI speech translation in 2024 in the academic and AI commercial areas. For instance, in the last quarter, Apple researchers published a paper on speech-to-text translation (S2TT) highlighting limitations in the way S2TT-capable systems process and incorporate nuance in translation. Then, in November, Microsoft announced the early release of a new mobile AI speech translation app for Azure subscribers. Dubbed Microsoft Translator Pro, it boasts many of the same features found in other standalone mobile translation apps, including Samsung's Live Translate and Google Translate. www.slator.com And it is not just translation. In November, OpenAI’s Whisper was in the news due to hallucinations in healthcare transcription. The AP reported that more than 30,000 clinicians and 40 healthcare systems have already begun using a tool from Nabla based on Whisper. We asked readers how often they use AI speech-to-text tools, and most respondents (40.7%) said they never do. Close to a quarter (24.1%) rarely use it, and the rest use it often (14.8%), sometimes (11.1%), and very often (9.3%). www.slator.com How often do you use AI speech-to-text toPoolll so?n November 22, 2024. Vote Count: 54 www.slator.com December to Remember? Throughout 2024, there was no shortage of M&As and funding rounds in tech and services in the language industry, leaving an impression both of financial recovery (compared to what for many was a slow 2023) and optimism for the year ahead. Slator reported over 30 acquisitions, advising on a few. Super Agency and Leader LSP handled multiple. TransPerfect made 4 acquisitions, Translate.One made 3. Teleperformance acquired ZP in November, while Stoquart, LXT, and ArKadia closed deals in December. At year-end, 31.7% of businesses reported being quite busy. Equal groups (20.5% each) had normal or somewhat slow activity. Meanwhile, 18.2% experienced very slow activity, and 9.1% saw their busiest period ever. www.slator.com How’s your business / work in December? Poll on November 29, 2024. Vote Count: 44 www.slator.com Slow-Changing Pricing Models Despite advances in machine translation and workflow automation, 87% of language service providers still use the traditional per-word pricing model, per the Association of Language Alternative pricing models have been discussed at industry events, but subscription pricing—offering tiers based on edit distance (human or automated)—is only now gaining traction. Australia's AI Media adopted a subscription model in April, boosting shares by 250%, catching investor attention We surveyed readers on translation pricing: 68% charge/pay per word, 15% use edit distance, 7% each prefer hourly or other metrics, and 3% opt for a subscription model. www.slator.com How do you charge or pay for translation? Poll on December 6, 2024. Vote Count: 100 www.slator.com Slator i s the leading source of news and research for the g lobal t rans la t ion, loca l izat ion, and language technology industry. Our Adv isory prac t ice is a t rusted par tner to c l ients look ing for independent analys is . Headquar tered in Zur ich, S la tor has a presence in As ia , Europe, and the US. www.slator.com