In November 2022, Amazon laid off 10,000 employees largely involved in Alexa development. That’s not the first casualty in this space. Microsoft had a foray into this market with Invoke from October 2017 to March 2021. And they’re not the last. Last year, Meta discontinued Portal. As of June 13, 2023, Google Home will no longer support Conversational Actions, Google's version of custom voice apps.
The momentum behind smart speakers that started in 2014 has sputtered into the trough of disillusionment. Amazon failed to monetize Alexa and Jeff Bezos shifted his attention to another project. Security concerns about eavesdropping, justified or not, led to distrust. While some myths continue to be repeatedly debunked, misinformation and legitimate security concerns remain. Hackers were able to fool Google Home and Alexa devices by using a modulated laser to simulate voice commands. The Open Voice Network is bringing ethical and development standards to this market and has built momentum with support from the Linux Foundation.
There are interesting implementations, like St. Noire, a board game spearheaded by Nolan Bushnell incorporating Alexa. Jeopardy remains a popular skill despite usability issues. Amazon's effort to position Alexa as a shopping assistant never substantially materialized and there was no single killer, must-have voice app.
I was heavily involved in this space for a couple of years and attempted to build a business around it. We were starting to get traction when COVID hit. I'd like to think we could have pivoted by now if COVID wasn't a factor. I still use my Alexa for music, timers, weather, and home automation, but the use of third-party experiences has dropped.
There are still some compelling use cases, like assistance for those aging in place and for the visually impaired. I was thrilled to receive an email from a visually impaired individual thanking me for releasing an audio game on Alexa. With smart speakers in roughly 50% of households in the US, Amazon and Google are not likely to abandon this market altogether, but they are overdue for a pivot. Looking ahead, we're likely to see more focused applications of smart speakers as this space begins to dig out of its current low up to the plateau of enlightenment.
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