The `COLLATE` clause in SQL is used to specify the collation sequence to use when comparing strings. Collations define how characters are ordered and compared, including case sensitivity, accent marks, and other language-specific rules. Without `COLLATE`, the database server might use its default collation, which might not be appropriate for all data. This can lead to unexpected results, especially when dealing with multilingual data. For instance, a comparison between 'Müller' and 'Mueller' might yield different results depending on the collation. A collation that considers umlauts might treat them as different characters, while one that ignores them might consider them equivalent. Choosing the correct collation is essential for ensuring data integrity and consistency in string comparisons across different languages and character sets. This is particularly important in applications that handle international data, where different languages might use different character sets and sorting orders.