This document discusses the rise of voice technology and its potential as the next digital disruption. It describes how voice interfaces using AI assistants are becoming more common through smart speakers and smartphones. While voice tech is currently early in its development, the document outlines how it could transform industries like healthcare, finance, government, automotive, hospitality, and consumer goods through new voice-enabled applications and services. However, challenges around quality, security, bias, and behavior still need to be addressed for voice interfaces to reach their full potential. The document advises executives to start experimenting with voice tech by addressing real business problems in a controlled environment to understand opportunities and unintended consequences.

1. What executives should
know about the next
digital disruption
Going
voice first

2. What is voice tech?

3. You know it as Siri, Google,
Alexa, Bixby, or Cortana.

4. You know it as Siri, Google,
Alexa, Bixby, or Cortana.
But when we talk about voice tech,
we’re talking about a lot of things.

5. We’re talking
about hardware.

6. We’re talking
about hardware.
We’re talking about
artificial intelligence.

7. We’re talking
about hardware.
We’re talking about
artificial intelligence.
We’re talking about
experiences.
Play some
music.
Tell me a joke.
What’s the
traffic like?
Set a timer.
How late is the
pharmacy open?
Adjust my
thermostat.

8. We’re talking
about hardware.
We’re talking about
artificial intelligence.
We’re talking about
experiences.
Voice technology sits at
the intersection of all three.
Play some
music.
Tell me a joke.
What’s the
traffic like?
Set a timer.
How late is the
pharmacy open?
Adjust my
thermostat.

9. IoT
AI UX
Truly transformative
applications of voice tech
will optimize the
relationship between
IoT, AI, and UX.

10. The current state
of voice technology

11. What you already know
Smart speakers are driving adoption
CANALYSADOBE VISUAL CAPITALIST
2016 2017
35million
U.S. smart speaker sales
doubled in 2017
Estimated # of speakers
shipped globally in 2017
Amazon and Google lead with
70% and 24% market share

12. What you may not realize
Voice is about more than smart speakers
PEW RESEARCH CENTER
46% of Americans use
digital voice assistants
43% of voice interactions are
with smartphones; only 8%
are with standalone devices
PEW RESEARCH CENTER
Voice tech is being
integrated everywhere:
showers, mirrors, light
switches—even toilets
THE GUARDIAN

13. They’ll use simple mobile devices, inexpensive data,
and voice recognition to connect for the first time.
“The next billion people
to come online may
never type an email.”
W A L L S T R E E T J O U R N A L

14. The fifth digital disruption

15. Voice technology offers another
opportunity to rethink everything.

16. Voice technology offers another
opportunity to rethink everything.
Yes, everything.

17. Every digital
disruption creates
new opportunities
and provides
new mandates…
raising new
questions about
format, content,
and experience.

18. But don’t forget:
You’ve done this before.

19. Web The internet disrupted
traditional models,
creating a completely
new channel for
communication and
commerce.
Make it virtual.
THE MANDATE

20. Web
Search
The arrival of search
engines was a shift
from “push” to “pull”
discovery — we had
to design, build, and
write to be found.
Make it discoverable.
THE MANDATE

21. Web
Search
Social
Social media
transferred control from
gatekeepers to the
crowd; our attention
shifted from your
website to platforms.
Make it shareable.
THE MANDATE

22. Web
Search
Social
Mobile
Mobile meant customers
had access anytime,
anywhere—on their own
terms. We had to create
experiences that could
adapt to an infinite
number of contexts.
Make it responsive.
THE MANDATE

23. Web
Search
Social
Mobile
Voice
Voice tech introduces a
new sensory experience.
It will require interfaces
that aren’t visual, content
that is not written, and a
relationship with artificial
intelligence.
Make it conversational.
THE MANDATE

24. Search
Make it
virtual.
Web MobileSocial Voice
Make it
discoverable.
Make it
shareable.
Make it
responsive.
Make it
conversational.
2006
Facebook goes beyond
colleges: the platform opens to
any user over13 years old with
a valid email address.
2010
The iPad is announced. Apple
sells 3 million in the first 80 days;
15 million are sold by the release
of the iPad 2, one year later.
2016
During the 2016 holiday
season, sales of Amazon
Echo devices grow 900%
over the previous year.
1994
A large extra cheese,
pepperoni, and mushroom
pizza from Pizza Hut is the
first thing ordered online.
2002
Google Toolbar allows people
to search in a browser without
visiting the Google homepage;
SEO efforts begin in earnest.
ENTREPRENEUR MOZ ENTREPRENEUR GEEKWIRE
20 years, 5 waves
of digital disruption
CNET

25. Ahmed Bouzid, CEO of Witlingo
Until now, all of us have bent to
accommodate tech, in terms of typing,
tapping, or swiping. Now the new
user interfaces are bending to us.”
—
“

26. Early
applications:
Healthcare
Financial services
Government
Automotive
Hospitality
Consumer goods

27. Boston Children’s Hospital’s
Alexa app KidsMD provides
information about
common illnesses and
medication dosing.
Internally, voice tech is
helping physicians comply
with protocols before
procedures and surgeries.
Healthcare
Source: CNBC
Image: Stas Walenga/Shutterstock.com

28. Capital One’s Alexa skill lets
banking customers check
balances, track spending,
and pay bills via voice.
Financial services
Source: CapitalOne
Image: MAXPIXEL

29. The City of Los Angeles built a skill
to promote community events.
In Utah, an Alexa skill helps
residents prepare for driver’s
license exams.
Las Vegas has joined states like
Mississippi and Georgia to make
government resources and
information available via voice.
Government
Source: GovTech
Image: Kim Seidl/Shutterstock.com

30. The latest version of Ford’s Sync
platform lets drivers use Alexa to
search destinations, manage
shopping lists, and control
smart home equipment.
Automotive
Source: CNET
Image: FORD

31. California’s Pacifica Hotels
chain has turned Echo Dots
into voice-activated butlers.
Guests can use smart
speakers to request towels
and get information about
local attractions.
Hospitality
Source: Pymnts
Image: MAXPIXEL

32. Tide’s Stain Remover skill
offers advice for dealing
with more than 200 types
of stains.
Alexa can also order a pizza
from Domino’s or a bouquet
from 1-800-Flowers.
Consumer goods
Source: Adage, Dominos, DigitalCommerce360
Image: MAXPIXEL

33. But voice technology today is like
browsing the web on a Blackberry.

34. But voice technology today is like
browsing the web on a Blackberry.
It’s going to get better.

35. There’s a lot of work to be done.
Quality
Security
In order to live up to its promise
of accessibility, voice recognition
needs to leap from 95% to 99%
accuracy, work with accents,
ignore background noise, and
support far more languages.
Among Americans who say
they don’t use voice assistants,
27% cite privacy concerns.
These devices are always
listening, but offer little
transparency on how voice
data is used and protected.
Bias
Behavior
What we put in will shape what
comes out. We need to pay
attention to the ways in which the
development of voice tech
perpetuates systemic biases.
Early adopters wonder why most
voice assistants are female. And
parents wonder how commanding
a voice assistant might influence
their children’s manners.
Are behavioral changes another
unintended consequence?

36. It’s time to get started.
1. Start with a real business problem.
2. Test in a low-risk environment with the
goal of understanding unintended
consequences.
3. Build internal expertise. If you engage with
outside partners, make sure the internal
team has a view of the risks and benefits.
4. Make a business case for a larger rollout.

37. The Lab Report helps
executives make sense of
emerging trends and new
opportunities.
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More from
the Lab Report
SEPTEMBER 2017
AUGUST 2017
OCTOBER 2017
10 articles that
make sense of the
‘voice-first’ future
Voice technology
isn’t just a trend;
it’s a paradigm shift
3 experts on the
state of voice tech
in healthcare

38. © 2018
www.luminary-labs.com