Voice Economy5 Predictions (& Concerns) for a Voice-Dominated Future

The Power of “Voice” Technology for eCommerce

Approximately one in every four adults in the U.S. now owns a smart speaker. This reflects the rapidly growing popularity of voice technology and conversational AI around the globe. So much so, in fact, that these technologies are becoming commonplace in people's lives worldwide.

Systems like Alexa and Google Home have pioneered a fresh avenue for cognitive science research, investigating the impact of user interaction with conversational devices. The accessibility and rising adoption rates of these technologies are shaping consumer behaviors and buying habits. This is made evident by the pervasiveness of voice assistants, increased expenditure on home improvements, and the growing use of mobile devices with enabled voice features.

But, obviously, voice technology also raises a lot of privacy concerns for many consumers. With these objections in mind, we have to ask: is voice technology poised to take over the economy? Or, is it just another bubble ready to burst?

Consumers Anticipate Voice-Connected Technology

Voice User Interfaces (VUIs) provide an efficient customer communication and engagement medium. As people grow more accustomed to real-time digital interactions, businesses can leverage these conversational platforms to deliver quicker responses and enhance customer satisfaction.

Remember, consumers already engage with voice-enabled devices like Alexa and Google Home. So, the concept of a "Voice Economy" isn't really a leap. Rather, it's just building on established and accepted technologies already featured in the average household. 

Nearly 30% of U.S. consumers say they’d pay a monthly fee to access a voice assistant that can do that. Plus, some 100 million consumers use their voice to talk to assistants built into their mobile phones (39%), an app on their smartphones (25%), and connected devices like speakers (27%). A smaller portion of consumers access voice built into their cars (15%) and wearable devices (12%).

Share of consumers who have used voice technology in any of the following ways in the last 12 months:

	Number of US consumers	Share of US consumers
Used a voice assistant built into my smartphone	100.6M	38.9%
Used voice-activated device	68.5M	26.5%
Used a voice-enabled app on my mobile device	64.3M	24.8%
Called a company’s call center and used its voice command system	61.3M	23.7%
Called bank and used its voice command system	45.6M	17.6%
Used voice capabilities built into my car	39.0M	15.1%
Used voice prompts on my wearable device	30.7M	11.9%
Used voice-enabled capabilities on my laptop or desktop computer	28.4M	11.0%

5 Predictions for a Voice-Dominated Future

The expansion of voice assistance is occurring at a remarkable pace. It's quite plausible that, in the next half-decade, almost every application will be leveraging AI-driven voice technology to some extent. The evolution and adoption of AI voice assistants will be further catalyzed by the increasing intuitiveness, responsiveness, and user-friendliness of voice applications.

On that note, here are 5 industry predictions for the future of voice tech:

#1 |  Increasingly Personalized Experiences

Personalization extends beyond merely addressing customers by their names in emails. It involves staying attuned to their tastes and preferences and actively engaging them in meaningful dialogues. This personal touch is crucial in fostering enduring relationships.

Businesses can leverage Machine Learning (ML), especially the subset known as Natural Language Processing (NLP), in combination with Sentiment Analysis. This will let them accurately comprehend the crux of customer inquiries and requests. By deciphering the intent behind these requests, brands can swiftly generate precise customer responses.

Consider the role of Conversational AI and Customer-Centric Personalization in companies like Pillo Health. They assist users in managing their medication regimen; monitoring dosage timings, securely storing medication, and dispensing it at the appropriate moment. When a user introduces a new medication into their Pillo account, the robot courteously reminds them to maintain regular intake well in advance of the required administration date.

#2 |  The Rise of Enterprise Voice Assistants

Prominent brands like Starbucks, Spotify, and eBay have integrated intelligent customer service into their online operations. A standout example of innovative chatbot technology is Erica, the announcement bot from Bank of America. Erica leverages artificial intelligence, complex algorithms, predictive messaging, and various sophisticated techniques to assist customers with payment processing, balance checking, and product exploration.

Meanwhile, Amazon's voice assistant is progressively widening its edge over competitors by introducing Alexa Skills and Alexa Capabilities. Among other novel features, Amazon has empowered developers with the tools needed to create their own Alexa Skills (akin to apps), a distinctive feature absent in other devices.

Alexa Skills can be employed to enhance user experience, dispense information, and boost productivity. For instance, customers can interactively learn about a new product through Alexa's customer-centric methodology. They can pose questions like, "Alexa, how is this product made?"

#3 |  Integration of Large Language Models (LLMs)

Voice Assistants and speech AI technologies capitalize on Large Language Models (LLMs) capabilities. These LLMs promise to refine call summaries and enhance real-time translation. They can offer insightful hints for sales and support teams during live conversations, and automate mundane tasks in a more natural, less mechanical way.

The time is ripe for creating immersive and interactive experiences involving Voice Assistants. And, as LLMs rise in importance, we can expect to see their broadened functionalities being incorporated into speech AI technologies and Voice Assistants. When might we anticipate such experiences gaining widespread acceptance, though?

As per an Opus Research survey, 13% of participants believe this mass adoption is already underway. 72% foresee voice-enabled experiences becoming extensively adopted within the coming one to five years. Put simply, it's safe to assume that such experiences will be the norm before this decade concludes.

#4 |  Standard Voice Assistance in Mobile Apps

Applications that feature built-in AI voice assistants have enhanced user-friendliness and simplified app navigation. Voice-activated apps empower users to manage almost all app features via vocal commands.

This concept mirrors that of text-based chatbots or GUI-based conversational agents. These permit users to explore and access websites through a singular element on the site. However, voice-based navigation offers an even quicker and more effortless experience. This revolutionary approach benefits less technically inclined users who wish to use apps more efficiently, saving both time and effort.

#5 |  Search Behavior Will Shift

These tools are playing an increasingly crucial role in the eCommerce sales funnel. But, as more online shoppers adopt voice search technologies, it's imperative for eCommerce platforms to equip themselves with tools that facilitate information capture and customer engagement.

Such engagements can help brands forge enduring relationships with customers. According to Juniper Research, consumer expenditure on voice-enabled products is predicted to reach $19 billion by 2022, for example.

Should voice search models prove sufficiently successful, this could herald the advent of a novel advertising avenue. It would be transformative for brands aiming to maintain high visibility for their messages.

Potential Problems of Voice Technology

As with any emerging technology, the voice economy is not without its potential pitfalls. For voice to shape the future as many consumers envision, facilitators of the voice economy must demonstrate its reliability.

It must be shown to help consumers overcome the risks and complexities that currently deter all but the most adventurous technology adopters. Most buyers hesitate to engage in complex activities where the consequences of errors could be catastrophic.

Indeed, a misstep as minor as Google or Alexa delivering a poor joke wouldn't mark a crisis. However, it could turn into a significant issue if a deep fake representation of your voice were to authorize a $10,000 withdrawal from your bank account.

Here are the five main drawbacks voice must overcome to be truly “future-proof”:

What's Next?

The future of conversational AI, specifically voice assistance, is extremely promising. Nearly 60% of smartphone users have experimented with voice search at least once in the past year. While not a daily practice for all, many are beginning to appreciate the convenience and accessibility it offers.

By 2024, the global voice-based smart speaker market is projected to be worth $30 billion, signaling the enormous potential of voice assistants. However, each untapped opportunity comes with a countdown to seize it before its competitive edge diminishes. 

Ultimately, where the market heads from here seem to be up to the consumer… but merchants should be paying close attention.