Apple's Siri ditches Bing for Google (AAPL, MSFT, GOOGL)

Voice Assistant Accuracy

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Google will replace Microsoft’s Bing as Apple’s default search engine for Siri on iOS and Spotlight on Mac, according to TechCrunch.

According to analysts, Google already pays Apple about $3 billion per year to serve as the default search engine for Apple’s Safari web browser. Using Google for these new services will give users a more consistent search experience across more iPhone and Mac features.

Switching the default web search in Siri from Bing to Google could improve Siri’s performance. Siri will be using Google’s Search API, which provides the digital assistant with access to ranked search results and the Knowledge Graph database, an AI-powered system that leverages its search results to surface links between objects and entities.

The Knowledge Graph has been paramount to Google’s efforts to lead accuracy in the voice assistant space, according to a study conducted by digital marketing agency Stone Temple. Google Assistant, which is powered by the Knowledge Graph, answered 68% of 5,000 questions correctly, compared with just 22% answered correctly by Siri.

For Google, the benefit of the partnership is mostly monetary. Despite being limited to mobile web searches, Apple users account for nearly half of all Google’s mobile search revenue. By becoming the default search engine for more of Apple’s OS services, especially for video results, Google should see added returns in mobile ad revenue.

But it will also ensure that its mobile search platform remains a primary mode of mobile discovery, particularly as voice search becomes more common. As users become more comfortable with the technology and as accuracy improves, voice search through assistants like Siri, Google Assistant, and Alexa will continue to grow. By 2020, voice will account for 50% of all mobile web searches. Apple accounts for roughly 15% of smartphones globally, presenting Google with a great opportunity to leverage Apple’s voice search to drive added revenue and voice search market share.

Jessica Smith, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on the voice assistant landscape that:

Identifies the major changes in technology and user behavior that have created the voice assistant market that exists today.
Presents the major players in today's market and discusses their major weaknesses and strengths.
Explores the impact this nascent market poses to other key digital industries.
Identifies the major hurdles that need to be overcome before intelligent voice assistants will see mass adoption.

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