/How Apple's Voice AI is Pioneering Voice Commerce

Commerce

How Apple's Voice AI is Pioneering Voice Commerce

Read time 7 mins

March 25, 2024

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Introduction

We live in an age of assistants. From Alexa to Google Assistant, voice-powered AI helpers have become ubiquitous parts of our digital lives. But while most virtual assistants still focus on basic tasks like playing music or looking up the weather, Apple is propelling Siri into a more advanced role: shopping.

With the growth of smart speakers and voice command technology, “voice commerce” is emerging as the next frontier of online shopping. And Apple is leading the charge into this voice-first future of retail.

The voice commerce revolution has been brewing for years as virtual assistants like Siri improve at completing everyday tasks through conversational voice interfaces. Apple, with its storied history of redefining human-computer interaction, saw the disruptive commercial potential early.

In 2017, Apple took the first major leap into voice-driven shopping by introducing pilot capabilities that allowed Siri to place orders with a handful of launch partners. It was a small but important first step toward unlocking e-commerce through conversation.

Since then, Apple has moved swiftly to expand Siri's skills as a virtual shopping assistant. Through partnerships with premier brands across categories like retail, food delivery, hospitality, and more, Apple has built Siri into a versatile voice-activated commerce platform.

Today, consumers can now discover products, research options, complete transactions, ns and arrange delivery entirely through conversational voice commands with Siri. Apple has optimized Siri's abilities to enable frictionless end-to-end shopping journeys, from intent to ownership.

It's a shopper's dream come true - no more typing on small screens or navigating laggy websites. Just simple, intuitive voice instructions out loud to Siri. Apple recognized years ahead of competitors that conversational interfaces would disrupt retail. Now the company is poised to redefine shopping for the voice-first era.

With continued advancement of Siri's conversational intelligence and commerce capabilities, Apple aims to make voice the preferred way consumers research, evaluate, and buy products. As Siri gets smarter, the possibilities for intuitive, personalized voice shopping grow exponentially. Once again, Apple's pioneering application of emerging technology looks set to fundamentally transform how people interact with the digital world.

The Evolution of Siri into a Shopping Assistant

Siri first arrived on the scene back in 2011 as a virtual assistant exclusive to Apple devices. During those early days, Siri focused on completing simple commands like setting alarms, placing calls, and looking up basic information online.

But in recent years, Apple has been steadily expanding Siri’s capabilities beyond basic administrative tasks and into wider domains like e-commerce. Through strategic partnerships and integrations with selected brands, Apple has transformed Siri into a seamless personal shopping assistant.

In 2017, Apple took its first major step towards voice commerce when it launched a pilot program that allowed users to purchase millions of products through Siri from just a handful of launch partners. Since then, Apple has rapidly expanded Siri’s e-commerce abilities by building a curated program with dozens of brands across categories like retail, food delivery, ride-sharing, and hospitality.

This sets the stage for Siri to become a versatile voice-first shopping portal through which consumers can not only browse and discover products but complete the entire transaction from search to checkout using only their voice.

Key Innovations in Apple’s Voice Commerce Strategy

Apple is pioneering new models for voice shopping by leveraging its ecosystem advantages and taking an intentional approach to roll out these new commerce capabilities. Here are some of the most important innovations shaping Apple’s voice commerce strategy:

Seamless Native Integrations: One major advantage Apple has is the ability to deeply integrate Siri into its wider ecosystem. Siri comes built-in across all Apple devices and also powers key consumer touchpoints like the App Store and Apple retail stores.

This gives Apple the unique ability to connect the dots between voice commands and payments to create smooth, frictionless transactions for users. For example, users can tell Siri to send money to a friend through Apple Cash or buy movie tickets with funds from an Apple Pay account without needing to open additional apps or enter payment details.
These native integrations that bridge voice assistance, payments, and Apple’s omnichannel retail presence enable seamless voice commerce experiences that competitors lack.
Curated Partners Program: Rather than opening up Siri to any and all brands who want to participate in voice commerce, Apple has taken a more selective and curated path. Through its invite-only Siri Kit partner program, Apple currently works with just a few dozen premier brands across categories like retail, food & drink, ride-sharing, hospitality, education, and more.

This careful curation provides quality assurance and helps ensure a smooth end-to-end experience for customers engaging in voice transactions. Having a more limited portfolio of trusted partners allows Apple to optimize the experience in ways that an open marketplace model cannot.

Leveraging Apple User Data: With consumer permission, Apple can use account data like payment methods, shipping addresses, and purchase history to streamline voice shopping through Siri. For example, if a user wants to reorder paper towels via Siri, the transaction can happen seamlessly because Siri already has the user’s preferred brand, delivery address, and credit card on file.

This leveraging of first-party user data allows Siri to provide more personalized, frictionless transactions - while still giving users full control over their privacy settings. Apple emphasizes that it will not share or sell data to brands or use it for targeted advertising.

Expanding Conversational Commerce Abilities: While most voice assistants only support simple single-step commands, Apple is investing in more conversational abilities that make the shopping and transaction process feel more interactive.

For instance, if a user asks Siri something open-ended like “I’m hungry - help me order some takeout for dinner,” Siri can now have a back-and-forth conversation to understand cuisine preferences, party size, delivery location and guide the user through placing the full order.

These expanded conversational capabilities position Siri as less of a robot assistant and more of a personalized shopping concierge.

Redefining Shopping in the Voice-First Era

Apple is transforming the retail landscape by evolving Siri from a simple virtual assistant to a sophisticated voice-activated shopping companion. With deep integrations into Apple’s ecosystem, a curated partner program, and a strong focus on privacy, Siri is positioned to become a key player in the future of voice commerce. As the technology advances, Siri’s conversational intelligence is set to revolutionize how consumers discover, evaluate, and purchase products—all through seamless, intuitive voice commands.

65%

65% of Smart Speaker Owners Have Made at Least One Purchase Using Their Voice Assistants in 2023. This statistic highlights the growing adoption of voice commerce among smart speaker users. With the convenience of simply speaking to place an order, more consumers are turning to their voice assistants for shopping needs. This shift in consumer behavior indicates that voice shopping is not just a passing trend but a significant transformation in how people interact with technology. As voice assistants like Siri become more sophisticated, the number of users making purchases through voice commands is expected to rise, solidifying voice commerce as a mainstream shopping method.

$40 Billion

The voice commerce market is poised for explosive growth, with projections estimating it to reach $40 billion by 2025. This figure underscores the significant economic potential of voice-based transactions as consumers increasingly embrace this technology for their shopping needs. Companies like Apple, with Siri at the helm, are well-positioned to capture a substantial share of this burgeoning market by continuing to enhance the capabilities of their voice assistants and offering seamless, secure, and personalized shopping experiences. This growth will likely drive further innovation in the voice commerce space, making it a critical area of focus for retailers and tech companies alike.

50%

50% of All Searches are Expected to Be Voice-Based by 2025, with a Significant Portion Driving E-Commerce Transactions The rise of voice search is one of the most profound shifts in digital behavior. By 2025, it is anticipated that half of all internet searches will be conducted via voice commands. This trend has major implications for e-commerce, as voice searches are often more specific and transactional in nature, leading directly to purchases. For instance, a user might ask Siri, “Where can I buy the best noise-canceling headphones?” and be guided through the entire purchasing process via voice commands. As more consumers rely on voice search for product discovery and decision-making, businesses will need to optimize their digital strategies to cater to this growing segment, making voice commerce a pivotal part of the future shopping landscape.

Focus on Security and Privacy

Data privacy has become a major concern for consumers when it comes to voice technology and smart devices. Apple is leaning into privacy as a key tenet of its voice commerce strategy.

Compared to Amazon Alexa which keeps transcripts of user interactions, Apple chooses not to store or mine Siri requests to inform ads or product recommendations. All processing is done locally on the device. Apple also does not sell or share data with brands or partners.

This emphasis on security and privacy is a distinguishing factor that builds additional consumer trust in shopping through Siri. While other platforms look to monetize user data, Apple positions Siri as a transaction facilitator - not an intelligence-gathering system.

Early Impact and Results: These innovations have paved the way for Apple to achieve promising early results with Siri-powered voice commerce:

- Billions of dollars transacted since launching Siri commerce features

- Double-digit growth in Siri’s voice commerce volume quarter-over-quarter

- Rave reviews from both consumers and brand partners participating in Siri voice shopping

- Indications that Siri users have higher average order values compared to non-voice shoppers

While Apple does not break out specific numbers, the company reports that Siri has already become a “major commerce platform” driving significant sales volume for brands across multiple sectors.

And as Apple continues expanding Siri’s capabilities and partner ecosystem, this voice assistant seems poised to shape the future of retail.

Woman Checking Her Phone in Retail Store Environment

Revolutionizing Retail: How Siri is Changing the Way We Shop

We live in an age where virtual assistants are becoming more than just tools for basic tasks—they are now integral to how we interact with technology, including how we shop. Apple’s Siri is at the forefront of this evolution, transforming into a comprehensive shopping assistant that leverages the power of voice commands to streamline the entire retail experience. From browsing to purchasing, Siri enables users to complete transactions effortlessly, all while maintaining Apple’s stringent privacy standards. As voice commerce continues to grow, Siri’s expanding capabilities signal a new era in how we buy and sell goods online.

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The Future of Voice Commerce

Voice shopping still accounts for a low single disingle-digitge of overall e-commerce transactions today. But Apple’s big bets in this space point to an undeniable trend of voice emerging as a prominent new interface for retail.

As consumers become more accustomed to conversing with technology through smart speakers and phones, Siri may become their preferred shopping companion for discovering, browsing, and buying products.

Apple’s strategic approach of integrating Siri commerce tightly across its ecosystem and combining AI capabilities with privacy protections gives the company a unique advantage in making voice transactions feel seamless, personalized, and secure.

While Amazon currently dominates the voice commerce market share thanks to Alexa’s integration with Amazon’s retail platform, Apple is rapidly emerging as a major second player poised to pioneer new voice commerce standards.

And Apple’s long-term vision for Siri goes beyond basic transactions. They are investing deeply in areas like contextual awareness and conversational intelligence - aiming to make Siri a proactive personal assistant who understands user habits and preferences. As these AI capabilities improve, they could open the door to innovations in customized shopping experiences.

It will certainly be fascinating to watch how Apple continues pushing Siri into this new era of conversational commerce. One thing is clear: voice shopping is fast becoming the next digital frontier, and Apple is staking its claim early to shape how consumers transact through smart assistants. With strategic advances across native integrations, curated partnerships, data privacy, and AI capabilities, Apple aims to make Siri a ubiquitous, trusted purchasing advisor.

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