The Innovator’s Dilemma in the Language Industry: Why Agility Is Your Superpower in the Age of AI

Language service providers face unprecedented challenges in today’s rapidly evolving landscape. The rise of artificial intelligence is reshaping how businesses approach multilingual content creation and localization. During an insightful conversation at the April Elevate Innovate session, technology guru John Tinsley spoke with Dave Ruane and Olga Blasco about how LSPs and all companies can stay competitive by embracing agility and innovation.

As AI continues to disrupt the language and adjacent industry, continuous action is needed to chart a way through. The conversation emphasized that agility, rather than size, is the key to thriving in this new AI-driven world.

When Agility Becomes a Necessity

“If you ask various stakeholders when you need to be agile in the language industry, the answer – more than ever – is right now.” – Dave Ruane

The speed at which AI is being integrated into language services is extraordinary. John highlighted a critical flaw in the current localization process: LSPs typically operate downstream, waiting for content to be handed off to them for translation. This reactive model is increasingly out of step with today’s fast-moving, AI-enhanced landscape. Instead of being passive participants,  pivoting toward being active, strategic partners in content creation, engaging earlier in the process to add value is a way to go.

To remain relevant as a company, rethink what is your role in the content lifecycle and act before the content is finalized.

Moving Upstream: From Translators to Strategic Content Partners

“What if LSPs didn’t wait for content to come to them, but became active partners in its creation?” – John Tinsley

Shifting from reactive translation to proactive content creation is no longer just a possibility but a necessity. Companies like Writer (formerly Qordoba) have already made this shift, transitioning from translation platforms to AI-driven content solutions, achieving remarkable success with a $2 billion valuation. This shift requires a significant mindset change, as many LSPs were built to translate, not to create.

To stay competitive, LSPs should embrace new technologies and adopt a broader view of their role. They should be thinking not just about translating content but about creating and optimizing it in the first place.

Adapt or Fade Out: The Fork in the Road

“Years ago, I used to call it ‘adapt or die.’ I’ve softened up a bit, but it’s the same choice.” – Olga Blasco

The language services industry is at a critical juncture. According to Olga Blasco, companies must evolve rapidly to survive. The rise of AI is both a threat and an opportunity, and LSPs that fail to adapt will risk obsolescence. The key question facing businesses today is whether they are ready to pivot, innovate, and integrate AI solutions.

In this context, agility isn’t just a strategic advantage; it’s the only smart way forward. LSPs must look at how to blend technology with human expertise to deliver services faster and more effectively than ever before.

The Innovator’s Dilemma: Timing Is Everything

The classic Innovator’s Dilemma presents a difficult choice for companies: innovate too early, and the market may not be ready; wait too long, and competitors may leap ahead. John Tinsley shared his experience launching Lara, a domain-specific AI translation model, which became a success thanks to the company’s decision to invest in it 18 months earlier.

This calculated risk paid off, underscoring the importance of internal agility. Smaller, more nimble companies are better positioned to experiment, fail, and adapt quickly. For larger companies, bureaucracy often stifles innovation, making speed a critical factor in success.

Watch the full session recording and learn more:

The Agility Advantage in AI Adoption

The conversation also touched on the key advantage of smaller companies in the age of AI. Unlike their larger counterparts, smaller firms have the flexibility to experiment with new technologies without the constraints of legacy systems. As AI adoption accelerates, agility is increasingly becoming a “superpower.”

“Maybe the bigness is like kryptonite when agility is needed.” – Olga Blasco

This agility allows smaller companies to test, adapt, and refine new AI-driven tools quickly, which can be a significant advantage over larger competitors tied down by complex decision-making processes and infrastructure.

Self-Reflection: A Critical First Step

For companies with established revenue streams, such as a mid-sized language service provider (LSP), the challenge isn’t necessarily finding innovation but staying relevant in an ever-changing market. John’s advice here is simple yet profound: self-reflection.

“Learn what your strengths are. Learn what your weaknesses are. Avoid the weaknesses or fill those gaps and play to your strengths.” – John Tinsley

If you’re already generating revenue, it’s crucial to assess why customers are buying from you. Is it because of your relationships, your reputation, or your service? Understanding what differentiates you will allow you to double down on those strengths while addressing any areas of weakness.

Conclusion: Embrace Agility to Drive Innovation

In the age of AI, the language industry is experiencing an unprecedented wave of change. LSPs that can embrace agility, leverage AI tools, and proactively participate in content creation will be best positioned for success. However, this requires a shift in mindset – from being passive service providers to becoming strategic partners in the creation and optimization of content.

As John Tinsley and Olga Blasco emphasized, the need to innovate is urgent. By fostering a culture of agility, reflecting on internal strengths and weaknesses, and staying open to new ideas, LSPs can not only survive but thrive in this rapidly evolving landscape.

As the industry moves forward, those who act with purpose, embrace change, and continuously innovate will lead the way in the new AI-powered era.