Last month, a client sent me an AI-translated contract and asked me to "just check it over." I found 23 errors. Seven of them could have triggered legal disputes. The client's "cost saving" nearly cost them market access in the UK.
This isn't an anti-AI screed. I use AI tools daily. But after thirty years of professional translation — German, French, Portuguese to English — I've developed a clear sense of where machine translation excels and where it fails catastrophically.
The timing of this article feels significant. As 2025 drew to a close, MIT Technology Review declared it "the year of the great AI hype correction." Even Sam Altman, CEO of OpenAI, admitted publicly that we're in an AI bubble. According to Gartner's 2025 Hype Cycle, generative AI has officially entered the "Trough of Disillusionment" — that sobering phase where reality catches up with promises.
The numbers are stark: despite average enterprise spending of $1.9 million on GenAI initiatives, less than 30% of AI leaders report their CEOs are happy with the return on investment. A RAND Corporation report found that 80% of AI projects fail — twice the rate of other IT projects.
Yet the promise remains seductive: instant translation, near-zero cost, ever-improving accuracy. And for certain use cases, AI translation is genuinely useful. But for others, it's a liability masquerading as an efficiency gain.
The Experiment
To write this article with integrity, I ran a test. I selected three text types that represent common business translation needs:
- Legal: A German employment contract clause
- Marketing: A Portuguese product description
- Literary: A French literary passage
I ran each through ChatGPT-4o and DeepL's latest model, then compared the results to my own professional translations. The results aligned with recent independent testing: DeepL achieves 92-98% accuracy for European languages in blind tests, with ChatGPT requiring 3x more edits to reach the same quality level. But those percentages mask crucial failures.
Where AI Gets It Wrong
1. Legal and Technical Precision
The German contract included the term "Sicherheitshinweise." ChatGPT translated it as "safety notices." DeepL offered "safety information."
Both are technically defensible. Both are legally inadequate.
German → English Example
Original: "Beachten Sie die Sicherheitshinweise in der Betriebsanleitung."
AI Translation: "Note the safety notices in the operating manual."
Human Translation: "Observe the Safety Instructions in the Operating Manual."
In EU product liability law, "Safety Instructions" is a specific term of art. Using "safety notices" could create ambiguity about whether the document meets regulatory requirements. One word. Potential lawsuit.
AI doesn't understand legal context. It optimizes for linguistic probability, not regulatory compliance.
2. Marketing Tone and Cultural Nuance
The Portuguese product description used the phrase "um toque de elegância" — literally "a touch of elegance." Both AI tools translated it correctly.
But the full sentence context mattered. The original had a warm, inviting tone suited to the Portuguese market. The AI translations came out flat, almost clinical — technically accurate but emotionally dead.
The Problem with "Correct" Translation
AI optimizes for accuracy, not impact. Marketing copy needs to persuade, not just inform. A technically correct translation can be a commercial failure if it doesn't move people.
3. Literary Voice and Rhythm
This is where AI falls apart completely.
The French passage included a sentence with careful rhythm and internal rhyme — qualities the author had clearly crafted deliberately. The AI stripped all of it, producing grammatically correct English that read like a first-draft summary.
The best translations don't preserve words. They preserve feelings. AI can move words between languages. Only humans can move meaning between minds.
Where AI Is Actually Useful
I'm not here to tell you AI translation is useless. That would be dishonest. The AI translation market hit $2.65 billion in 2025, growing at 22.6% annually. That growth exists because AI genuinely solves problems — just not all of them.
| Use Case | AI Translation | Human Translation |
|---|---|---|
| Internal emails, quick gisting | ✓ Excellent | Overkill |
| High-volume, low-stakes content | ✓ Good with review | Cost-prohibitive |
| First draft generation | ✓ Useful starting point | May not need |
| Legal contracts | ✗ Dangerous | ✓ Essential |
| Marketing copy | ✗ Flat, unconvincing | ✓ Essential |
| Literary/creative work | ✗ Destroys voice | ✓ Essential |
| Certified/official documents | ✗ Not valid | ✓ Required |
The Real Cost of "Free" Translation
The client I mentioned at the start saved perhaps €2,000 by using AI instead of a professional translator. The legal review to fix the errors cost €3,500. The delayed market entry cost them an estimated €40,000 in lost first-mover advantage.
I see this pattern repeatedly:
- Reputation damage — Awkward English signals "foreign company" to native speakers
- Legal exposure — Ambiguous contracts create liability
- Lost sales — Marketing that doesn't resonate doesn't convert
- Recovery costs — Fixing bad translation costs more than doing it right
My Recommendation: The Hybrid Approach
The future isn't AI versus humans. It's AI with humans. Here's my framework:
When to Use What
- AI alone: Internal documents, research, personal use, first drafts
- AI + human review: Non-critical external content, high-volume projects
- Human only: Legal, marketing, creative, certified, anything with stakes
The question isn't "Can AI translate this?" It can translate almost anything. The question is "What happens if the translation is subtly wrong?" If the answer involves lawyers, lost customers, or embarrassment — hire a human.
The Craftsperson's Advantage
Here's the paradox of the AI bubble: as investors pour hundreds of billions into data centers and Nvidia's market cap exceeds $5 trillion, the human translation market isn't shrinking — it's stratifying. Commodity translation races to zero. Premium translation commands higher fees than ever.
One investor framed it perfectly: "I think it is both true that AI will transform the economy, and I think we're also in a bubble, and a lot of people will lose a lot of money." The same applies to translation: AI will transform how we handle high-volume, low-stakes content — and simultaneously make human expertise more valuable for everything that matters.
As Gartner predicts, by 2028, over 95% of enterprises will have deployed GenAI applications. But here's the part the headlines miss: actual implementation remains "fraught with legacy tech debt, data silos, and a lack of in-house talent." The technology works. The organizational change required to use it well? That's where most companies struggle.
Clients who understand the difference are willing to pay for it. Those who don't learn eventually — usually the expensive way.
The 47 pages I deleted last month? The client rehired me to translate them properly. They've never asked me to "just check" AI output again.
"The bitterness of poor quality remains long after the sweetness of low price is forgotten." — Benjamin Franklin