# 260 Pairaphrase Co-Founder Rick Woyde on Building a Language Technology Platform

Introduction to Machine Translation and Language Technology

The Nature of Machine Translation

• The term "machine translation" is perceived as cold and mechanical, indicating a lack of warmth in the technology.

Guest Introduction

• Rick Void, co-founder of Paraphrase, an AI-powered language technology platform, joins the podcast.

• The host mentions their location in Zurich, Switzerland, contrasting it with Rick's rainy Birmingham, Michigan.

Rick Void's Entrepreneurial Journey

Background and Experience

• Rick describes himself as a typical entrepreneur who dropped out of college to pursue business ventures.

• He has experienced various ups and downs throughout his entrepreneurial journey.

International Business Ventures

• Rick shares experiences running businesses in Detroit, Stuttgart (Germany), and Mexico City despite financial losses.

Influence of Multilingual Household

• Growing up in a tri-lingual household influenced Rick’s interest in languages; his mother was Uruguayan and father German.

Founding Paraphrase: Identifying Market Gaps

Market Research Insights

• Paraphrase was founded about nine years ago to address gaps identified through customer feedback regarding machine translation usage.

Customer Needs Assessment

• Many customers were using Google Translate for quick translations without needing perfection—highlighting a demand for efficient tools.

Challenges Faced by Agencies

The Journey of Creating a User-Friendly Translation App

Motivation Behind the App Development

• The speaker faced challenges in obtaining analysis and information, leading to the determination to create a simple-to-use translation app.

• Recognized a market for translation software, believing that translation needs extend beyond localization managers to include everyone in an organization.

• Emphasized the need for simplicity in technology and user interface amidst complex existing tools catering to various use cases.

Background and Initial Challenges

• The speaker had no prior experience in software development, which posed significant challenges at the beginning of their journey.

• Despite lacking technical skills, they attended networking events and asked questions, facing initial humiliation but gaining valuable insights over time.

• Encountered a steep learning curve while collaborating with experienced individuals like designer Curtis Jackson and developers.

Learning Process and Skill Development

• Focused on problem-solving rather than coding; developed an understanding of managing software products through collaboration with designers and developers.

• Acknowledged the distinct roles of designers and developers, emphasizing that each has unique skill sets that should not be conflated.

Client Use Cases for the Translation App

• The app serves various clients including schools translating Individualized Education Programs (IEPs) and parental communications due to increasing demand in the U.S.

• Works with multilingual corporations familiar with traditional translation workflows involving file uploads, reviews, edits, and maintaining translation memories.

Legislative Context Influencing Demand

• Explained IEP as reports created by teachers for students struggling academically; schools are required to produce these documents in multiple languages.

Understanding the Evolution of Language Solutions

Transition from TMS to LSI

• The company transitioned from TMS (Translation Management System) to LSI (Language Solutions Integrator), reflecting a broader scope beyond traditional language services.

• Initially, the approach was exploratory, with a focus on various file formats and content creation to attract customers.

Subscription Model and Customer Engagement

• The service operates on a SaaS model, requiring annual or multi-year subscriptions for access.

• The impact of AI advancements has been significant over the past four years, marking a disruptive cycle in translation technology.

Shift from Machine Translation to AI Translation

• There is a shift in terminology from "machine translation" (MT) to "AI translation," as AI systems offer more advanced capabilities.

• The speaker expresses excitement about adapting to changes brought by AI, emphasizing growth opportunities rather than threats.

Generative AI Tools and Innovations

• New generative AI tools are being developed that allow users to translate files using platforms like ChatGPT.

• A proprietary GPT model focused on translation tasks is under development, enhancing user experience with prompt-based content generation.

Language Demand Trends

• Spanish remains a dominant language in demand; however, there is increasing interest in languages such as Arabic and Dari due to immigration trends.

• LLM-based translations enable flexibility in language offerings beyond traditional limitations set by major providers like Google or Microsoft.

Integration Challenges and Customer-Centric Development

• Deciding which features to integrate into the platform poses challenges; maintaining user experience while adding functionality is crucial.

Mobile App Development and Interpretation Solutions

Addressing School Needs

• The mobile app is being developed to meet various needs of schools, which include not just translating content but also engaging directly with students and parents.

Current Interpretation Solutions

• Existing interpretation solutions are inadequate; schools and hospitals often rely on services like Language Line and internal bilingual staff, but these methods have limitations.

Evolving Toolkits for Communication

• A single application will not suffice; users will require a toolkit of multiple tools. The new app aims to integrate with hospital EHR systems and school records for seamless communication.

User Interface Challenges

• Balancing feature richness with a clean user interface is challenging. The goal is to keep the UI simple while ensuring it remains sophisticated enough to meet user needs.

Demonstrating Value in Translation Services

• Many clients are unaware of the complexities involved in translation, such as text expansion. There’s a need for solutions that effectively communicate their value while maintaining usability.

Automation in Translation Tools

Streamlining User Experience

• The aim is to automate background processes in translation tools, reducing unnecessary tasks for users. For example, creating translation memories (TMs) automatically without requiring manual setup.

Industry Adaptation

• The translation industry is beginning to embrace automation and simplicity, moving away from overly complex tools that overwhelm users with options they rarely use.

Shifts in Language Service Providers (LSP)

Changing Perceptions of LSP Roles

• LSPs are evolving from traditional roles focused solely on file translation to becoming language solutions integrators that offer comprehensive services beyond basic translations.

Sales and Marketing Strategies

Visibility and Growth Tactics

Navigating SEO and AI in the Translation Industry

The Evolution of Marketing Strategies

• The speaker discusses the gradual progress within the translation industry, emphasizing their initial focus on SEO to drive traffic to their website.

• After reaching out to three SEO professionals on LinkedIn, they successfully collaborated with one, leading to increased website traffic through blog writing.

• Their marketing department has expanded significantly, now including content writers, technical SEO experts, paid advertising specialists, and a link builder.

Challenges Posed by AI and Google

• The speaker notes that Google's AI overviews are negatively impacting website traffic by consolidating content and reducing visibility for original sources.

• They express concern about how this trend may affect Google's long-term strategy as competitors like ChatGPT begin to erode its search dominance.

• Despite challenges with Google’s new features pushing organic results down, there is an increase in referrals from AI engines.

Adapting to New Technologies

• The speaker highlights that while Google traditionally exchanged content for traffic, newer platforms like ChatGPT operate differently by utilizing existing content without guaranteed traffic returns.

• Continuous marketing efforts are essential; businesses must consistently produce searchable digital products and content despite increasing competition.

Insights into Future Developments

• There is a notable rise in traffic from ChatGPT users who mention discovering the speaker's website through conversations with the AI tool.

• Influential figures like Jason Lemkin at SaaStr are exploring innovative uses of AI agents for lead generation that outperform human salespeople.

Upcoming Initiatives in Translation Technology

• The speaker reveals two major initiatives: integrating ChatGPT technology into their app and developing a specialized GPT model tailored for translation tasks.

• A sidebar feature allows users to conduct research without leaving the translation interface, enhancing user experience during translation processes.

Importance of Terminology Management

• They emphasize that uploading English content can improve translations across languages without needing extensive bilingual resources or alignment processes.

Translation and Alignment Challenges in AI

The Importance of Glossaries and Context

• The speaker emphasizes the significance of glossaries, stating they are crucial for context in large language models (LLMs), a shift from previous practices.

• There is a personal reflection on the tedious nature of alignment work early in their career, highlighting a lack of interest in such roles.

Content Localization Issues

• A challenge discussed is the inconsistency caused by companies modifying generic content with local additions, which complicates alignment efforts.

Advancements in Generative AI Products

• New generative AI features are introduced, including translation capabilities using RGPT and Chat GPT, promising an experience similar to traditional neural machine translation (NMT) engines.

Shifting Work Practices

• The speaker predicts a decline in traditional document creation methods, like typing out entire documents in Microsoft Word, as new products emerge.

Future Developments and Busy Schedule