Smart speakers are the trojan horse for consumer AI (AMZN, GOOGL, GOOG)

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As voice takes on an increasingly central role in the way consumers access the internet and control their connected devices, tech companies, like Amazon, Google, and Samsung, are using smart speakers as Trojan horses to enhance the reach of their voice assistants, Activate cofounder Michael Wolf said Tuesday during The Wall Street Journal’s D.Live tech conference.

Smart speakers are intrinsic to most voice assistant usage — but that's likely to change as voice morphs into one of the primary device interfaces, alongside video and — to a lessening extent — text. Smartphone users in the US are already helping to drive the adoption of voice-centered app usage, which will likely facilitate the spread of voice on other platforms including smartphones and connected cars. Between September 2016 and August 2017, audio- and video-focused apps made up the majority of new app downloads in the top 100 most downloaded apps across iOS and Android in the US.

However, a persisting lack of consumer awareness could inhibit more in-depth voice assistant usage. One of the main issues facing voice assistants is that users simply don’t know how to use them beyond simple commands like playing music or getting weather updates. For example, while Amazon's Alexa has access to more than 25,000 Skills (voice apps), 65% of users have not yet enabled a third-party Skill, according to Activate. To drive greater adoption of voice assistants, tech companies will likely need to provide more visibility for third-party voice apps from businesses. This will also help make the assistants more useful to consumers, creating a virtuous cycle.

Peter Newman, research analyst for BI Intelligence, has put together a Smart Speaker report that analyzes the market potential of the Echo Look, Echo Show, and HomePod. Using exclusive survey data, this report evaluates each device's potential for adoption based on four criteria: awareness, excitement, usefulness, and purchase intent. Finally, the report draws some inferences from our data about the direction the smart speaker market could take from here.

Here are some of the key takeaways:

Amazon's new Echo Show is the big winner — it has mass-market appeal and looks like it will take off. The combination of usefulness and excitement will drive consumers to buy the Echo Show. The Echo Look, though, seems like it will struggle to attract that same level of interest.
Apple’s HomePod looks likely to find a place in the smart speaker market but won’t dominate its space like the iPhone or iPad did.
The smart speaker market will evolve rapidly in the next few years, with more devices featuring screens, a variety of more focused products emerging, and eventually, the voice assistant moving beyond the smart speaker.

In full, the report:

Showcases exclusive survey data on initial consumer reactions to the Echo Look, Echo Show, and HomePod.
Highlights the aims and strategies of major players in the smart speaker market.
Provides analysis on the direction this nascent market will take and the opportunity for companies considering a move into the space.

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