A.I Speaker and Understanding of Digital Business


Nowadays, everyone is saying about A.I (Artificial Intelligence). The world is changing faster than before. It seems that all people will not live without A.I. The fast-changing world generally makes new investment to infrastructure for its future. It is for pre-occupancy. 5G network business or infrastructure is a typical example to explain about those change. 5G network infra has made a synergy with high-distribution rate and growth of smartphone, and those base has been helping us to adapt the fast-changing world well.

Smartphone has led the end of 3rd industrial revolution and a start of 4th industrial revolution. From now, a new tool(medium) will lead the new era, called ‘A.I era’, and economic growth. Among them, the thing which can have a strong effect on our daily life is A.I speaker.

우리의 미래 생활을 바꿀 인공지능 스피커
Artificial Intelligence Speaker will change our daily life in the future
Artificial Intelligence Speaker will change our daily life in the future

A.I Speaker and Understanding of Digital Business

Current Situation

A.I speaker has been being distributed from 2016, and its rate has been being sharply increasing until now. In its initial stage, a price of A.I speaker was little high due to its business development cost. However, its price has been gradually decreasing because of process efficiency and high-demand. So, a boost of its distribution rate began from that time. Also, there was a price dumping war among telecommunication companies. This situation had an effect on price down and high-distribution rate of A.I speaker.

2016년부터 인공지능 스피커 보급률은 가파르게 상승하고 있다.
A.I Speaker Distribution Rate has been sharply increasing from 2016
A.I Speaker Distribution Rate has been sharply increasing from 2016

In the case of domestic A.I speaker market, it actively started by telecommunication companies, such as SK Telecom, Korea Telecom (KT), and, LG U Plus. As its next step, the big 2 ICT companies, such as KAKAO and NAVER, entered in the market. And then, foreign A.I speaker, such as Google Home and Alexa, was entered in the market. This trend means that A.I speaker market has been more diversified than before. Its market is growing faster, and its features and a number of services in A.I speaker are being upgraded or improved.

Satisfaction level of A.I speaker is about 50 percent yet due to accuracy of voice recognition and low-quality services. In spite of those situation, why do a lot of big companies enter in A.I speaker market?

국내 인공지능 스피커 만족도는 50점 정도이다.
Satisfaction about usage of A.I speaker is about 50%
Satisfaction about usage of A.I speaker is about 50%

Before explaining about its reason, let’s know how to operate A.I speaker and which technologies are utilized for it.

A.I Speaker and Operation Flow

First of all, A.I speaker must be always connected to the network for its data transmission. Therefore, generally, most A.I speakers are connected to home WiFi. A.I speaker has a feature to send and receive a voice at the same time. If A.I speaker send a voice to A.I server of the core system, A.I server changes the voice into text by utilizing STT(Sound-To-Text) technology.

Changed texts are delivered to A.I based chatbot server, and A.I generates the answer from question. And then, by utilizing TTS(Text-To-Sound) technology, its voice are sent to the speaker again. A.I speaker should go through big 5 steps, such as input, transformation, analysis(interpretation), transformation, and output. A.I has just one brain, and it processes all things in parallel. This being so, it can handle a lot of requests from various A.I speakers. The companies having their own A.I speaker are trying to improve its features and recognition accuracy by actively collecting, analyzing, and upgrading voice data.

일반적인 인공지능 스피커의 프로세스 및 구조
A.I Speaker's common process and structure
A.I Speaker’s common process and structure

Understanding of Digital Business

Let’s know about why big companies are entering in A.I speaker market. Consequently, its reason is a formula of digital business ecosystem. The most important factor of digital business is to generate traffic from users or people. Amount of traffics in service or platform is proportional to amount of investment and value.

A.I speaker market is still in the initial stage. Its first traffic was just generated 5 years ago. A growth of its traffics is so fast. If considering that the current A.I speaker is 1st generation model and filling remaining distribution rate, a potential of A.I speaker will be infinite. This being so, a lot of companies have had big investment to enter in A.I speaker market to take preoccupancy of potential traffics, because they can make more new creative something based on those traffic.

This trend is similar to Netflix case. In Over-The-Top(OTT) media market, Netflix aggressively made a big investment with broad marketing activities in the initial stage of market. As its next step, they had distributed various fun contents after sufficiently collecting their customers. Through these steps, they have expanded their potential and profit. This is because they can do nothing without crowd.

In other words, it is like a game of territory war to get future traffic, because a core of digital business is that traffic is money. The current traffic includes future value. Especially, because A.I speaker can strongly affect our daily life in the near future, its value will be higher than what we expected.


There is no No.1 in the market, including domestic and foreign. Now, most people generally select A.I speaker based on their preference and brand power. However, if its features are improved and new A.I speakers are launched in the future, a leading company will be clear in the market. Because A.I speaker will be essential tool in our daily life, as a consumer view, we need to actively utilize A.I companies’ marketing activities and its cost for us to savingly purchase it, and efficiently utilize it.

Through this article, I hope that all readers understand about digital business and A.I speaker market.

A.I Speaker and Understanding of Digital Business

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