Alexa, Should My Company Invest in Voice Technology?

New technologies can create new opportunities to engage with customers — but is it always worth it for companies to build out a presence on these platforms? When it comes to launching a voice assistant on Amazon Echo or Google Nest, recent research suggests the investment won’t necessarily pay off. The authors analyzed stock price data for nearly 100 companies before and after they released voice assistant features, and they found that while some firms experienced a positive bump in valuation after launching their voice assistant, others experienced no increase or even a notable decrease in market value. Specifically, firms that launched informational features experienced an average 1% increase in valuation, firms that launched object-control features experienced no change in stock price, and firms that launched transactional features actually experienced an average 1.2% decrease in market value. As such, the authors argue that companies should think carefully before investing in a voice assistant to ensure that the value added will be worth the substantial development costs.