The aim of TransType2 (TT2) is to develop a new kind of Computer-Assisted Translation (CAT) system that will help solve a very pressing social problem: how to meet the growing demand for high-quality translation. To date, translation technology has not been able to keep pace with the demand for high-quality translation. The innovative solution proposed by TT2 is to embed a data driven Machine Translation (MT) engine within an interactive translation environment. In this way, the system combines the best of two paradigms: the CAT paradigm, in which the human translator ensures high-quality output; and the MT paradigm, in which the machine ensures significant productivity gains.