What is the ROI of Speech Translation, Interpretation, and Captioning?

As seen in our recent 2024 AI industry review, global organizations are adopting speech translation and captioning solutions at a record rate.

For businesses looking to boost productivity and employee engagement, this means running internal communication like All Hands meetings and training sessions in multiple languages in real time. For those aiming to tighten collaboration with overseas teams or expand to new markets, we’re increasingly seeing client engagement, board meetings, and live events use real-time speech translation technology for maximum international reach. And human interpretation is seeing a similar rise in adoption for high-stakes communication.

With a range of options on the market today, the question remains: what is the return on investment (ROI) of speech translation technology?

From cost savings in remote human interpretation to increased revenue opportunities with AI speech translation, we’ve broken down a formula to calculate what implementing a live speech translation solution could mean for your business in pure dollar terms. Keep reading.

1. Cost Savings Through Automation

KUDO is pretty unique in selling both professional human interpretation and AI speech translation. This puts us in a great position to weigh in on the ROI of each solution to help you make an informed decision about what both could generate for your organization.

AI Speech Translation

One of the most obvious benefits of AI speech translation is the reduction in costs associated with traditional (in-person) human interpretation and manual transcription. Hiring professional interpreters and captioners to attend live meetings, events, and customer support can be expensive and logistically challenging. Comparatively, AI speech translation provides:

• Lower operational costs: Automating multilingual communication with AI can reduce interpretation and captioning expenses by 30-50% compared with traditional, manual human-based services.
• Faster turnaround times: AI-translated captions are generated instantly, eliminating the typical 24-72 hour delay for manual transcription. This can translate into thousands of dollars in productivity savings per year by improving workflow speed.
• Scalability of language coverage: Unlike human interpretation, which requires additional resources for each new language, solutions like KUDO AI scale at no additional cost per language. For example, a company expanding from 5 to 20 languages using traditional methods might see costs quadruple, while AI-automated solutions keep costs flat.

Automated Human Interpreter Management

KUDO Marketplace is the world’s only automated marketplace for finding, booking, and paying professional language interpreters for any meeting or event platform. Our clients benefit from cost savings in the following areas:

• Fixed interpreter fees: Standardized pricing eliminates fluctuations and overcharging. Clients can save 30-50% compared to traditional interpretation costs as a result.
• No travel and accommodation expenses: By using remote interpreters, businesses eliminate travel-related costs, saving $1,000+ per project (meeting or event).
• Reduced administrative overheads: Manual interpreter booking requires back-and-forth communication, negotiation, and contract processing. KUDO Marketplace automates this process, reducing admin time by 80-90%. For clients with recurring meetings and events, this translates to hundreds of hours saved annually.

2. Increased Productivity

Time is money. Whether you use human interpretation or AI, real-time speech translation helps businesses operate more efficiently and effectively.

• Improved cross-border collaboration: Miscommunication costs businesses an estimated $37 billion annually due to productivity losses and errors (SHRM). Endless studies show that organizations with strong internal communication practices see higher employee productivity by up to 25% (McKinsey), and this means making important content like company announcements and training accessible in multiple languages.
• Enhanced employee engagement: A study by Rosetta Stone found that 80% of employees feel more engaged and productive when communicated with in their preferred language. Multinational organizations using AI speech translation or human interpretation also report higher employee satisfaction and retention rates. Considering that replacing a single employee costs on average 6 to 9 months’ salary (SHRM), this generates serious cost savings for global organizations.
• Fewer, more efficient meetings: Language barriers in virtual meetings often lead to longer discussions, repeated explanations, and misunderstandings. Studies show that employees spend an average of 31 hours per month in unproductive meetings (Harvard Business Review). By integrating AI speech translation or human interpreters, organizations can cut meeting times by 20-30%, ensuring that discussions remain efficient and productive—especially in teams operating across different time zones.

3. Expanded Market Reach

Both AI and human interpretation play a crucial role in connecting businesses with international customers, partners, and employees—particularly in the APAC region. According to a CSA Research study, businesses that invest in translation are 2.5 times more likely to experience revenue growth.

• Attract global clients: Offering multilingual support significantly increases engagement with international audiences. A study by Nimdzi Insights found that companies prioritizing localization see a 1.5x increase in customer acquisition compared to those that don’t.
• Improve client retention: Real-time translation ensures that customers and business partners receive support in their preferred language, enhancing trust and loyalty. According to Common Sense Advisory, 74% of business buyers are more likely to engage with a vendor that offers support in their language.
• Boost revenue opportunities: Language barriers limit market reach. Companies that invest in a language accessibility solution can tap into 40% larger market opportunities (GALA Global) than those that don’t. Brands that localize content effectively furthermore see an average revenue increase of 10-15%, so if market expansion is on your organization’s roadmap, real-time speech translation is a must.

4. Compliance and Accessibility Benefits

Many industries like healthcare, higher education, and government are required to adhere to language accessibility regulations to ensure equitable access for all. AI speech translation and professional interpreters help businesses meet these requirements cost-effectively.

• Legal compliance: Companies that fail to provide multilingual accessibility risk fines and legal consequences, particularly in regulated industries like healthcare and public services. For example, under the Americans with Disabilities Act (ADA) and EU accessibility laws, organizations must provide language access services for non-native speakers and individuals with disabilities.
• Enhanced inclusivity: AI-driven captioning and human interpreters ensure that deaf and hard-of-hearing individuals receive equal access to information. A World Health Organization (WHO) study found that over 1.5 billion people live with hearing loss, emphasizing the need for inclusive communication tools.
• Stronger brand reputation: Businesses that prioritize language accessibility foster higher customer and employee loyalty. A report by Edelman Trust Barometer shows that brands perceived as inclusive and accessible experience a 20% increase in consumer trust.

Measuring the ROI of AI Speech Translation

To determine the ROI of speech translation and captioning—whether through AI or human interpreters—businesses should track key performance indicators (KPIs) such as:

• Reduction in language service costs: Measure savings from automating translation and interpretation or optimizing human interpreter usage.
• Increase in global client and partner engagement: Track retention rates and engagement levels among international customers and business partners.
• Improvement in employee productivity and collaboration: Assess time saved and efficiency gains from seamless multilingual communication in meetings and training.
• Faster response times in customer and partner support: Compare resolution times for multilingual inquiries before and after implementing translation solutions.
• Compliance with language accessibility requirements: Ensure adherence to industry regulations while minimizing associated costs and legal risks.

ROI Formula for Speech Translation & Captioning

A structured way to measure the ROI of speech translation and captioning is to quantify cost savings, productivity gains, and revenue growth.

This isn’t easy to measure concretely since it has to factor in multiple variables, but here’s a possible equation that works for both AI and human interpretation:

Where:

• S = Savings from optimizing interpretation, transcription, and manual translation costs (whether through AI automation or strategic human interpreter use).
• P = Productivity gains from reducing miscommunication and improving workflow efficiency.
• R = Revenue increase from expanded market reach and improved client satisfaction.
• C = Total cost of speech translation implementation (AI subscription, human interpreter fees, and integration costs).

How to Calculate Each Component

1. Cost Savings (S)

Compare current spending on human interpreters, transcription services, and manual translation with the optimized approach (whether by automating with AI or streamlining human interpretation use with KUDO Marketplace).

2. Productivity Gains (P)

Estimate time lost due to language barriers and miscommunication.

3. Revenue Growth (R)

Measure increased revenue from better multilingual support and market expansion.

4. Cost of Speech Translation Implementation (C)

Account for AI platform subscriptions, human interpreter fees, and integration expenses.

Final ROI Calculation

Bear with us, people—nearly there. And you’ll definitely want to see the results:

This means the company gets nearly 16x return on its investment in a balanced AI and human speech translation strategy.

So, by combining AI-powered translation for scalability and human interpreters for high-value interactions, organizations can maximize cost-efficiency, enhance productivity, and unlock revenue opportunities at a massively positive ROI.

Key Takeaways

Let’s wrap this up. Whether leveraging AI-powered speech translation for scalability or human interpreters for high-value interactions, businesses can achieve significant cost savings through increased productivity and global reach.

As organizations continue to navigate an increasingly multilingual world, investing in effective language accessibility solutions—whether AI-driven, human-powered, or a combination of both—is no longer just a competitive advantage; it’s a necessity.

From enhancing customer communication and improving employee collaboration to meeting compliance requirements, integrating AI and human language solutions strategically is the key to unlocking revenue opportunities in an increasingly globalized marketplace.