Growth in voice AI in auto
Oct 27, 2021
7 MIN READ

Voice AI in the Auto Industry: Top Trends That Matter

Voice assistants are increasingly the preferred method for users to search, ask questions, and complete tasks efficiently, quickly, conveniently, and hands-free. In 2020 alone, 45% of internet users searched via voice, according to We Are Social. Even before voice assistants became ubiquitous, the auto industry recognized voice AI as a way to deliver safer, smarter, more natural, and — most importantly — hands-free in-car experiences.

Today, car companies are investing in voice AI technology for all models—not just those at the higher end—to meet user needs and stay ahead of the competition. According to Juniper Research, the voice AI industry is on the rise with voice commerce revenue projected to be valued at $80 billion by 2023. 

Interested in learning more about the latest voice trends in the auto industry? Check out our Auto Infographic to learn more about what is driving the growth of in-car voice AI.

  1. Auto manufacturers are increasingly integrating voice
  2. Drivers are loyal to auto brands that build better experiences
  3. Car companies plan for new revenue opportunities

1. Auto manufacturers are increasingly integrating voice

As more consumers demand in-car voice assistants, auto manufacturers are ensuring that their vehicles offer the latest in voice AI technology to meet user needs and expectations. From cloud-connected voice assistants that offer the latest in search, entertainment, and navigation to embedded voice AI that provides seamless cabin controls, more users are purchasing cars that are voice-enabled. In fact, the desire for in-car voice assistants is only growing. According to Capgemini, 95% of customers are expected to use in-vehicle assistants by 2022.

95% of customers are expected to use in-vehicle assistants by 2022.

Capgemini

With commute time, errands, and traveling, we spend a great deal of time behind the wheel—an activity that requires our hands’ and eyes’ full attention. Because looking down at a screen or pushing a button—even for a second—can make driving less safe, people have been quick to adopt voice interfaces while in their cars. A report by Voicebot.ai discovered that in-car voice assistants have 60% higher monthly usage than smart speakers, further illuminating the popularity of hands-free interfaces while driving.

Automotive Infographic

The automotive voice AI trends and consumer demands for voice assistants don’t seem to be slowing down, instead, they appear to be expanding exponentially. A report by Automotive World states that 90% of new vehicles globally are projected to have embedded voice assistants by 2028. As users continue to look forward to fast, convenient, efficient, and hands-free interactions with their cars, car manufacturers are investing in the latest voice technology to meet their demands. 

2. Drivers are loyal to auto brands that build better experiences

Building brand loyalty, brand evangelists, positive reviews, and encouraging returning customers are still the major drivers for auto OEMs. But creating brand loyalty and building positive associations and lasting impressions with customers is not always as straightforward as it seems. Users are more likely to become loyal to a brand if they have experiences that improve their lives and well-being. Delivering an in-car voice assistant that makes the driving experience more enjoyable and safer has become a popular way for automakers to meet those needs.

Voice-enabled vehicles provide many benefits and functionalities for drivers. According to a study by Capgemini, the top in-car voice assistant use cases are playing music (85%), integrating with at-home voice assistants (78%), booking service appointments (74%), voice shopping (74%), and booking a cab or ride-share (69%). All of these capabilities expand the driving experience, making it more dynamic and memorable, by allowing the driver to complete tasks or access entertainment that would normally be difficult to achieve while safely driving.

Automotive Infographic

Voice assistants make the driving experience more enjoyable and efficient, allowing drivers to get more done while driving safely. Some tasks, such as playing music or rolling up and down the windows, are merely more convenient hands-free. Others, including integrating with smart technology, voice shopping, and ordering food, would not be possible to do while driving without a voice assistant. Voice-enabled vehicles enable the driver to get more done when spending a decent portion of every day behind the wheel. 

In-car voice assistants also allow drivers to keep their hands on the wheel and their eyes on the road. In fact, a report by Adobe discovered that 92% of voice users say technology makes them feel safer while driving. According to The Zebra, 14% of fatal car crashes were attributed to cell phone use while driving. In-car voice assistants are more than just a means for easy, hands-free access to entertainment, navigation, and shopping. They are a technology that creates secure, enjoyable, and safer driving experiences.

92% of voice users say technology makes them feel safer while driving.

Adobe

By providing drivers with lots of options for in-car and cloud interactivity via voice, auto manufacturers are building better experiences for their customers. Allowing drivers to access a wide range of content and information through specialty domains, such as Sporttrader, NPR, FlightStats, TinBu, CustomWeather, and iHeartMedia, and giving them access to in-car control and things like navigation are dramatically changing the in-car experience.

Using a hybrid approach to connectivity, which includes both cloud and embedded voice assistant capabilities, drivers have access to a voice assistant both when the internet is available and when it is not. 

Drivers remain loyal to brands that provide exceptional user experiences. Auto manufacturers looking to create brand evangelists and stay ahead of the competition will want to consider what domains, use cases, and connectivity options their voice assistants have in order to build an experience that will be lasting, memorable, and have a positive impact on their users’ lives. 

3. Car companies plan for new revenue opportunities

With the advancement of voice AI technology comes new revenue opportunities for car companies. According to Verified Market Research, the connected car market is predicted to be valued at $215 billion by 2027. Even with the expanding popularity of voice-enabled vehicles, auto manufacturers are still searching for means to get a return on their voice AI investment. Through non-intrusive voice ads that provide real value to the user, auto brands can create new revenue streams and prove their ROI.

The connected car market is predicted to be valued at $215 billion by 2027.

Verified Market Research

Non-intrusive voice ads aren’t just a means of revenue either, but a way to engage with users and create valuable experiences. According to a study by Pandora, 72% of listeners agree that voice ads are easy to engage with, 27% of listeners report loving interactive voice ads, and 20% more said they liked interactive voice ads.

Automotive Infographic

By creating monetizable moments, auto manufacturers can create positive experiences for their consumers while proving ROI on their in-car voice assistants. As voice AI technology continues to develop and expand, more auto brands will find revenue opportunities through their voice assistants.

Top trends for voice in the auto industry include auto manufacturers increasingly integrating voice, drivers becoming loyal to auto brands that build better experiences, and car companies planning for new revenue opportunities. Auto manufacturers looking to stay ahead of their competition will want to seriously consider investing in voice AI technology before their users turn to a voice-enabled competitor. 

For more insights into the growing trends of voice in auto, view our full infographic: Voice AI: The Future of Auto Innovation.

At SoundHound Inc., we have all the tools and expertise needed to create custom voice assistants and a consistent brand voice. Explore our independent voice AI platform at Houndify.com and register for a free account. Want to learn more? Talk to us about how we can help bring your voice strategy to life.

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