Chief executive Satya Nadella said Vole would launch a test version of the service, dubbed Skype Translator, for Windows 8 later this year.
The internet-based phone service has been facing increased competition and has been trying to come up with ways to attract more users.
Skype currently has 300 million monthly users globally and Nadella thinks that this is a good way to make sure that you can compete with anybody without language barriers.
So far there is no indication if the service will be offered for free or if the users will have to pay a fee. Or how good it will be.
Vole recently published a blog saying that researchers at Microsoft Research and the University of Toronto had made a breakthrough in reducing the error rate in speech recognition by over 30 per cent by using Deep Neural Networks (DNN).
DNN is patterned after human brain behaviour and allows researchers to train more discriminative and better speech recognisers than previous methods.
The theory is that as Vole adds more data to the system it will get better results.
Gurdeep Pall, corporate vice president of Skype said the latest feature was a result of "decades of work" in speech recognition, automatic translation and machine learning technologies research.
"It is early days for this technology, but the Star Trek vision for a Universal Translator isn't a galaxy away, and its potential is every bit as exciting as those Star Trek examples."
Still no word if it will understand English as it is spoken in er England.