Opinions expressed by Entrepreneur contributors are their own.
Key Takeaways
- AI reduces translation errors, but cultural nuance still requires human expertise.
- Successful localisation combines AI efficiency with adaptive strategies and local insights.
- Ignoring culture in global markets risks lost sales and reputational damage.
In 2025, LARA, a professional translation AI, recorded just 2.4 translation errors per 1,000 words — a big difference compared with ~12 errors typical of older machine translators. Yet while AI is reducing technical mistakes, it has not solved the deeper challenge of cultural resonance.
According to Shopify research, businesses that invest in localisation and personalisation get 10–15% higher conversion rates.
At the same time, about 30% of localisation failures in 2024 happened because of over-reliance on raw AI outputs — resulting in lost sales, ruined consumer trust, and reputational risks. Going global successfully is about a flexible strategy that combines AI with cultural background and human oversight. In this article, I share my tips on AI and culture mix to make localisation work.
Related: I Used This 4-Step ChatGPT Framework to Spot Flaws in My Business
Product and service fit
Consumers expect brands to understand their unique needs. Studies show 66% of customers want companies to personalise offerings, and culturally tailored products show 15–20% higher sales conversion rates.
The biggest trap companies can get into is expecting AI to detect cultural nuances. The point is successful localisation is not a translated packaging or interface tweaks; it’s also about embedding the product into the cultural logic of the market. That means local experts, user testing and the agility to keep adapting strategy through times.
IKEA in Japan initially struggled by offering its standard European-sized furniture, and it just didn’t fit Japanese standards. So the company made some changes in their strategy, based on market research and consumer feedback: shortening their furniture, prioritizing multifunctional items and adapting their exhibition rooms to reflect typical Japanese interiors (like adding tatami flooring styles).
Pricing and payment systems
Currency localisation is a must, and it addresses both pricing strategy and payment options. Data says 93% of consumers say local-currency pricing influences purchase decisions. It’s also important to fit prices to local norms, based on purchasing power, before scaling.
In 2025, Microsoft adjusted pricing for its cloud services in Brazilian Real and British Pound to align with global levels, improving stability and trust. As a result, they faced a 12% increase in sales, reflecting local currency fluctuations and business conditions. Zoom, meanwhile, adopted multi-currency strategies to buffer against exchange-rate fluctuations, reporting revenue increases of up to 40% by doing so.
Sales channels and distribution
Online marketplaces account for around 30% of global e-commerce purchases. In the US, Amazon alone controls 37.6% of the market. The thing is, copy-pasting a global strategy rarely works. Testing channel mixes, promotional formats and marketing strategies in micro-segments helps brands learn not only what sells but how customers behave – how quickly they decide, how often they return and how loyal they remain.
Adapting content, interfaces and offers to regional behaviours, based on user feedback and data analytics, can turn AI from a generic recommendation engine into a real decision-support tool.
Uniqlo’s hybrid model blends physical stores, e-commerce and local marketplaces such as Lazada and Amazon. In Japan, weather-sensitive marketing lifted sales by 11.6%. In Southeast Asia, mobile-first marketplaces bridged trust and payment gaps. Across Europe and North America, coordinated store expansion reinforced brand recognition. All of these cases prove that cultural insights, multiplied across channels, drive measurable performance.
Legal and regulatory compliance
By 2025, 71% of countries have enacted data privacy laws similar to GDPR, with more still drafting legislation. Compliance is not just a legal obligation but a marketing advantage. Transparent data practices, secure payments and clear licensing signal that a company values consumer rights.
In 2025, the Luxembourg National Commission for Data Protection fined Amazon €746 million for violating GDPR consent rules around advertising. The case highlighted not a data breach, but inadequate transparency and consent practices. Beyond the financial cost, the reputational damage was significant.
Beyond one-size-fits-all localisation
A 2025 Nimdzi report found that the lack of localisation of brand elements like slogans, imagery and design cuts engagement and conversion rates by up to 25%. It’s better for businesses to experiment with A/B tests, small-scale pilots, and integrated feedback loops to make sure their products and campaigns are safe from cultural or regulatory risks.
Netflix’s global success blooms from investing in authentic cultural content (e.g., Squid Game in Korea, Money Heist in Spain), alongside tailored dubbing, subtitling, and even UI design. In India, mobile-only subscriptions and local payment options drove adoption. Netflix leverages AI for scale, but human expertise for cultural resonance.
Related: OpenAI Made More Money in the First Six Months of the Year Than It Did in All of 2024
Culture as a dynamic process
Culture is always changing with new trends, memes and nuances evolving every day, especially with Gen Z and Gen Alpha audiences. Data shows that 72% of consumers say brands must reflect their values and cultural norms to maintain trust. Thus, companies need to pay attention to what’s happening inside the cultures they work with, work with local experts and be flexible enough to quickly change their products and messages.
In 2024, Adidas launched a Ramadan-specific app tailored to athletes observing fasting. It offered fitness and nutrition guidance, aligned with religious practices and fostered community sharing. The initiative wasn’t just about respecting culture – it was about living it in real time, which deepened loyalty and authenticity.
AI is great at technical stuff like translating, pricing and analyzing data fast. But it’s not human, understanding humour, emotions and the cultural nuances that build real loyalty. And the key to expansion that works is in the mix of AI’s efficiency with cultural background and local expertise.
Key Takeaways
- AI reduces translation errors, but cultural nuance still requires human expertise.
- Successful localisation combines AI efficiency with adaptive strategies and local insights.
- Ignoring culture in global markets risks lost sales and reputational damage.
In 2025, LARA, a professional translation AI, recorded just 2.4 translation errors per 1,000 words — a big difference compared with ~12 errors typical of older machine translators. Yet while AI is reducing technical mistakes, it has not solved the deeper challenge of cultural resonance.
According to Shopify research, businesses that invest in localisation and personalisation get 10–15% higher conversion rates.
At the same time, about 30% of localisation failures in 2024 happened because of over-reliance on raw AI outputs — resulting in lost sales, ruined consumer trust, and reputational risks. Going global successfully is about a flexible strategy that combines AI with cultural background and human oversight. In this article, I share my tips on AI and culture mix to make localisation work.
