Podcast Summary: Embracing Digital Transformation

Episode: AI is changing the translation industry
Host: Dr. Darren Pulsipher
Guest: Brian Murphy, CEO of Smartling
Date: January 6, 2026

Episode Overview

This episode explores the profound impact of AI—specifically generative AI and large language models—on the language, translation, and localization industry. Dr. Darren Pulsipher sits down with Brian Murphy, CEO of Smartling, to discuss how rapid technological advancements are reshaping business models, operational processes, and even industry expectations. Brian shares firsthand insights on Smartling's digital transformation journey, how automation has upended translation work, the challenges of operationalizing AI in enterprise settings, and the lessons other organizations can learn from Smartling’s evolution.

1. The Pace of Technological Change

Key Topics:

• The accelerating speed of successive tech revolutions
• AI's transformational impact in just a few years
• Parallels between current AI hype cycles and previous tech booms

Notable Moments:

• [02:41] Brian on technological revolutions:
  “Speed, speed, speed, speed. Incredible. … with AI … the impact that it’s had globally on every company and the revenue that these companies are driving, it’s just incredible, the pace.”

• [03:52] Brian draws parallels to previous cycles:
  “This is going to follow like what happened in… the commercialization of the Internet. ... Massive investment in the infrastructure … and then a significant reset. But out of that … is going to emerge really, really, really powerful impacts on the world.”

2. Operationalizing AI in the Enterprise

Key Topics:

• Only a small percentage of AI projects make it to production
• Initial "DIY" approach to AI integration often falls short
• The emergence of enterprise-grade, AI-powered SaaS solutions

Discussion Points:

• [05:08] Enterprises rushed to implement AI, often with limited success.
• [06:33] Shift is occurring from in-house, experimental AI projects (using “Vibe coding”) to buying proven, enterprise-grade AI solutions.

Memorable Quote:

• [13:00] Brian on Smartling’s transformation:
  “We are now delivering translation and localization six times faster for 60% less cost and with higher quality than we could two years ago. … That’s the impact of AI.”

3. AI’s Disruption of the Translation and Localization Industry

Key Topics:

• Transition from human to AI-driven translation (now 84% AI-powered at Smartling)
• Lower costs and faster turnarounds are expanding the potential market
• Quality, integration, and process complexity remain significant challenges

Insights and Examples:

• [12:32] The majority of Smartling’s translations now use AI, a shift that didn't exist two and a half years ago.
• [16:28] The cost and speed enhancements are making the company more valuable; AI is driving up—not shrinking—the total market by enabling more content to be localized affordably.

Notable Quote:

• [18:07] Brian on the need for localization:
  “65% of people won’t buy or convert on a website that’s not in their own language. … Why don’t all companies localize? Well, because it’s expensive and it’s slow.”

4. Brand, Quality, and Governance Challenges

Key Topics:

• AI translations must be governed to prevent brand damage and address hallucinations
• Human oversight is essential; Language Quality Assurance (LQA) is vital

Detailed Discussion:

• [20:46] LLMs alone aren't enough: content can be inaccurate, hallucinate, or miss brand nuances.
• Smartling uses a three-part system: automated translation, language quality assurance (with hallucination detection), and human review for flagged content.

Memorable Quote:

• [23:38] Brian:
  “In our world, human oversight isn’t an afterthought. It’s actually an architectural principle and ensures that AI amplifies expertise instead of amplifying errors.”

5. The Power and Importance of Localization

Key Topics:

• Personalization and localization go hand-in-hand for effective global marketing
• Localization extends far past simple language translation—it considers dialect, tone, and regional specifics.

Notable Quotes:

• [24:19] Anecdote from Darren about Lucent:
  “They had localization in the United States. … I said, why not just come up with one common one? And they said, because people respond when other people talk like them.”

• [22:21] Brian:
  “…This is achieving that holy grail personalization on a global scale. We’re able now to take all that personalized messaging and translate it, localize it exactly, correctly into that language.”

6. Organizational and Process Transformation at Smartling

Key Topics:

• Integrating AI is a fundamental, not superficial, change—processes, organization, and roles must evolve
• Emphasis on user experience, role-based review, and continuous improvement

Steps Taken:

• [28:14] Smartling “started from scratch,” asking how they’d build the company today if they could destroy and reinvent it.
• Continuous reinvention, not just bolting AI onto existing tools.

Notable Quotes:

• [30:03] Darren:
  “So this… also tells me that you had to retrain your staff.”
• [30:08] Brian:
  “Dramatically. And I actually had to restructure the teams. … Over the last two and a half years, it’s been like massive, sheer force of will. Kind of like realigning this organization to this new vision.”

7. Change Leadership and Personal Reflections

Key Topics:

• Leading through cultural and organizational upheaval
• The CEO’s mindset and the needs for checks and balances during change

Memorable Quotes:

• [32:05] Brian:
  “You do have to check yourself to make sure … you’re pushing through [an appropriate] amount of change … because you can easily start spinning your organization around.”
• [31:02] Brian on his motivation:
  “I've always been really energized by change. So … almost all of my career choices have been around creating a change in a market. And that to me is fun. I get bored when things are just turn the crank.”

8. Final Thoughts and Looking Forward

• The journey is ongoing, with much uncharted territory
• Smartling will continue adapting, and Brian is open to returning for updates on their progress and pitfalls

Notable Quote:

• [33:44] Brian:
  “We’re making this up. There is no path in front of us. … We’re creating it.”

Key Timestamps

| Segment | Topic | Timestamp | |---|---|---| | Opening & Introductions | Background and setup | 00:00–02:37 | | Tech Revolutions' Speed | Internet → Cloud → Mobile → AI | 02:37–06:33 | | AI Hype & Enterprise Challenges | Adoption barriers & DIY attempts | 06:33–11:08 | | AI in Translation at Smartling | Business transformation metrics | 11:08–17:28 | | Localization Market Expansion | Personalization, localization, Jevons Paradox | 17:28–20:46 | | Governance & Oversight | Hallucination, QA, brand concerns | 20:46–24:19 | | Personalization in Localization | Importance of dialect, custom AI engines | 24:19–28:14 | | Re-architecting Smartling | Organizational changes, user experience | 28:14–32:05 | | Change Leadership | CEO reflections, caution on change | 32:05–33:44 | | Closing Remarks | Invitation to connect & future update | 33:44–End |

Summary Table: AI's Impact on Translation Industry at Smartling

| Area | Before AI | After AI Integration (2023–2026) | |---|---|---| | Proportion of AI-translated words | Near 0% (manual/human) | 84% (AI-driven) | | Turnaround Time | Weeks | 6x faster | | Cost | High, rationed localization | 60% less | | Quality | Human-dependent | 30% higher, QA-guarded | | Market Potential | $25B, limited | Expanding as costs drop. More content localized. |

Conclusion

This episode offers a vivid roadmap for any enterprise navigating AI integration, particularly in content-rich, quality-sensitive domains like translation and localization. The discussion underscores the critical need for strategic, holistic change—not just technical implementation—led by adaptable, visionary leaders. Smartling’s experience is a testament to the persistent, iterative, and human-centered journey of digital transformation.

To learn more: Visit smartling.com or connect with Brian Murphy on LinkedIn.