Skype Translator uses machine learning to power its automatic speech translation. Understanding context and correcting nuances in speech, make for a complex problem to solve. The AI powering Skype Translator can translate English and Spanish speech and over 40 languages for instant messages.
You can see the Skype Translator in action in the video below:
Microsoft shared an infographic on the process that is used to translate the speech to text along with other details of the service, currently in preview.
Click on the image to see a larger PDF.