Amazon is catching up with Google in speech recognition (AMZN, GOOG)

BI Intelligence

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Amazon is introducing a new feature for its Echo smart speakers that allows users to train the Alexa voice assistant to distinguish between members of a household, so The edge.

Google added This feature, called “Voice Match,” was integrated into the Assistant last spring and released on the recent hardware eventand Amazon’s catching up process could be critical to maintaining its leadership position in the smart speaker market.

By reading 10 sentences to an Echo, users can give the voice assistant the ability to recognize who is speaking to it. This is a critical advantage for a smart speaker for several reasons:

• It allows personalization of messages and music selection. Because the voice assistant can identify who is asking for breaking news, it can choose sources based on the person’s individual preferences, rather than relying on device-level settings. This is even more relevant with music—the service is compatible with Amazon Music Unlimited out of the box—where users can choose from their own playlists or personalized recommendations.

• And it will enable a better shopping experience, which is critical for Amazon.Family members with multiple Amazon accounts can use a smart speaker to easily reorder from their own history, rather than just the main account. With a screen-equipped device like the Echo Show, it’s also useful to allow the smart speaker to display product recommendations based on the individual user. This could help Amazon increase Echo-based voice purchasing, which only nine percent of voice assistant users say they’ve tried exclusive data from BI Intelligence.

Whether Amazon’s implementation of personalized voice recognition can match Google’s remains to be seen, and could determine the impact of this new feature on the smart speaker market. Google Assistant’s voice recognition and response has so far outperformed Alexa, although this hasn’t had much of an impact on overall sales of the devices. However, with the launch of new, cheaper devices like the Google Home Mini, Google may be able to challenge Amazon’s lead in installed base. Improving Alexa is key to maintaining its position at the top of the smart speaker market, and this addition is an important step in that direction.

Smart speakers – Amazon’s Echo, for example – are the latest category of devices set to take up a large part of our increasingly digital lives. Designed primarily for the home, these devices execute a user’s voice commands through a built-in digital assistant. These digital assistants can play music, answer questions, and control other devices in a user’s home, among other things.

The key question for this new product category is not when it will take off, but which devices will win out. To answer that question, BI Intelligence, Business Insider’s premium research service, surveyed our leading consumer panel and collected exclusive data on Amazon’s recently released Echo Show and Echo Look, as well as Apple’s HomePod.

Peter Newman, research analyst for BI Intelligence, has compiled a Smart Speaker report that analyzes the market potential of Echo Look, Echo Show, and HomePod. Using exclusive survey data, this report assesses the adoption potential of each device based on four criteria: awareness, excitement, usefulness, and purchase intent. Finally, the report draws some conclusions from our data about where the smart speaker market might go from here.

Here are some of the key findings:

• The big winner is Amazon’s new Echo Show – it has mass appeal and is likely to win out. The combination of utility and excitement will entice consumers to buy the Echo Show. The Echo Look, however, may struggle to generate the same level of interest.

• Apple’s HomePod will likely find a place in the smart speaker market, but it won’t dominate it like the iPhone or iPad.

• The smart speaker market will evolve rapidly over the next few years. More devices with screens will come onto the market, a variety of more targeted products will hit the market, and at some point the voice assistant will outgrow the smart speaker.

The full report:

• Presents exclusive survey data on early consumer reactions to Echo Look, Echo Show and HomePod.

• Highlights the objectives and strategies of the major players in the smart speakers market.

• Provides an analysis of the direction this emerging market will take and the opportunities for companies considering entering this space.

To receive the full report, subscribe to a Full access Match with BI Intelligence and get instant access to this report and over 100 other expertly researched reports. As a bonus, you’ll also get access to all future reports and daily newsletters to help you stay up to date and benefit personally and professionally. >> Learn more now

You can also purchase and download the full report from our research store.

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