IBEX Limited, the customer lifecycle experience solutions provider, has been making headlines recently for its ambitious pivot towards AI integration. Everyone is focused on the potential for AI to automate customer interactions and reduce reliance on live agents. But nestled within the recent Q3 earnings call transcript [Source: IBEX Q3 2024 Earnings Call Transcript] lies a potential game-changer that has slipped beneath the radar: **IBEX Translate**.

While analysts and investors are busy calculating the impact of automated calls on live agent volume, IBEX is quietly laying the groundwork for a solution that could disrupt the multi-billion dollar language translation services market. This seemingly innocuous detail, mentioned almost in passing by CEO Bob Dechant, could be the sleeper hit of IBEX's AI strategy.

Dechant describes IBEX Translate as a solution that "uses generative AI to translate conversations into various languages that are difficult to support." He goes on to say that this solution directly targets "costly old world language translation service companies that result in poor customer experiences." He concludes by noting that IBEX Translate is "gaining tremendous amount of interest and will be 100% accretive to our business."

This is no small claim. Traditional language translation services have long been a costly and often cumbersome necessity for companies operating globally. The current landscape is dominated by established players, and customer experiences are often marred by stilted translations and a lack of natural conversational flow.

IBEX Translate, by leveraging the power of generative AI, promises to deliver a vastly improved customer experience. Imagine a future where language barriers melt away, replaced by seamless, real-time translation that captures the nuances of human conversation.

The potential financial impact of IBEX Translate is staggering. The global language services market is projected to reach **$88.53 billion by 2027**, growing at a CAGR of 9.24% from 2020 to 2027 [Source: Allied Market Research] . If IBEX Translate can capture even a small fraction of this market, it could significantly boost the company's top and bottom lines.

This potential for rapid, high-margin growth is further amplified by the fact that IBEX Translate will be "100% accretive to our business," meaning that it will not cannibalize existing live agent volumes. Instead, it will create a completely new revenue stream, adding to the company's already impressive growth trajectory.

Shifting Focus: From Live Agents to AI Solutions

So, while the BPO industry fixates on the potential disruption of AI in call automation, IBEX is quietly positioning itself as a pioneer in a different arena. IBEX Translate has the potential to not only transform the way companies handle multilingual customer support but also to unlock a massive new market opportunity for IBEX.

This shift in focus from traditional live agent services to AI-driven solutions is evident in IBEX's recent earnings calls. While discussions about live agent volume and capacity utilization are still present, there's a clear emphasis on the company's AI initiatives and their potential impact on future growth.

To illustrate this point, let's take a look at the number of times "AI" and related terms are mentioned in IBEX's Q2 and Q3 2024 earnings call transcripts [Source: Seeking Alpha IBEX Earnings Transcripts] .

As we can see, the number of "AI" mentions nearly doubled from Q2 to Q3, highlighting the growing importance of AI in IBEX's overall strategy.

The market hasn't factored in the potential impact of IBEX Translate on the company's valuation. Analyst coverage focuses primarily on traditional BPO metrics, overlooking this potential AI-driven revenue stream.

This potential for rapid, high-margin growth, coupled with IBEX's strong financial position and proven ability to win new clients, suggests that the company may be significantly undervalued. IBEX Translate, the hidden gem of the company's AI strategy, could be the catalyst that propels IBEX to new heights.

"Fun Fact: The word "translation" comes from the Latin word "translatio," meaning "a carrying across" or "a bringing across." It's fitting that IBEX Translate, with its potential to bridge language barriers, embodies this very essence of "carrying across" understanding and connection."