For years, the smart speaker was billed as the next big computing platform. The idea was, instead of tapping a screen, people would talk to an intelligent assistant that could answer questions, play music, order groceries and control the home. More than a decade after Amazon launched the Echo in 2014, that vision is getting a second wind thanks to generative AI. Amazon has rolled out Alexa+ in the US, Apple is rebuilding Siri through Apple Intelligence, and Google is replacing Google Assistant with Gemini.
Yet one question remains is that if voice assistants are the future, why have so few companies built such devices? While manufacturing the hardware is straightforward, creating an assistant that understands your diction, recognises different languages, remembers what you said before while protecting user privacy requires years of investment in software. It also demands an ecosystem of apps, smart-home integrations and developers.
According to Mordor Intelligence, Amazon, Google and Apple continue to dominate the global smart speaker ecosystem. Amazon alone says it has sold more than 500 million Alexa-enabled devices worldwide, giving it the largest installed base of conversational AI hardware. Statista estimates that Amazon’s Echo accounts for nearly 60% of the US smart speaker market, well ahead of Google and Apple.
Divergent Strategies
Amazon’s Echo devices were designed to pull users deeper into Amazon’s ecosystem, allowing them to shop, stream music, and control connected appliances. The hardware often sold at heavily discounted prices because the real value lay in increasing engagement with Amazon’s retail and digital services.
Meanwhile, Apple took a very different route as instead of chasing market share, it positioned the HomePod as a premium device that works seamlessly with the iPhone, Apple Music and HomeKit. Privacy became its key differentiator, with more processing taking place on-device.
Google came closest to challenging Amazon through Nest speakers and Google Assistant. But the arrival of large language models has changed its priorities. Instead of focusing on smart speakers alone, Google is embedding Gemini across Android phones, smart displays and connected devices.
Despite all these, others have struggled to keep pace. Microsoft invested heavily in Cortana, even partnering with Harman Kardon to launch voice-enabled speakers, before shutting down the consumer assistant. Meta introduced Portal smart displays but later exited much of the
hardware business to focus on AI and mixed reality. Samsung integrated Bixby into smartphones, televisions and appliances, but the assistant never developed an ecosystem comparable to Alexa or Google Assistant.
China offers a notable exception though. Baidu, Alibaba and Xiaomi have built successful voice assistants tailored to local consumers by integrating them with Chinese e-commerce, payments and smart-home platforms. Their success, however, has largely remained domestic.
Generative AI Pivot
Generative AI is now giving voice assistants another opportunity. Earlier assistants worked best with predefined commands such as setting alarms or playing songs. New AI models can hold conversations, answer follow-up questions, summarise information and complete more complex tasks. Alexa+, Apple’s upgraded Siri and Google’s Gemini are all moving in that direction. But these advances also raise costs. Every AI conversation requires powerful computing infrastructure, continuous model training, security safeguards and integration with thousands of connected devices. Unlike smartphones, smart speakers are replaced infrequently, limiting hardware revenue after the initial purchase.
That makes the business difficult even for well-funded companies. Recent AI-first gadgets such as Humane’s AI Pin and Rabbit R1 generated significant buzz but struggled to convince consumers. The next phase of AI therefore may not belong to the company with the one with the strongest ecosystem. As AI becomes more personal, success will depend on controlling the entire technology stack. So far, that still remains a club with very few members.