The Voice Recognition Market To Hit a New High: Data Out Now


Global Market Insights predicts that the voice recognition software market is set to cross $7 billion by 2026

According to Global Market Insights, the voice recognition software market is set to cross $7 billion by 2026. A new report by the market analytics company found that the rapid adoption of advanced technologies such as AI and machine learning are driving the demand for voice-enabled smart devices across the market.

The market, which was worth approximately $2 billion in 2019, is anticipated to grow at an 18% CAGR between 2020 and 2026. The demand for better user authentication across industries is expected to increase the market growth.

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The report also found that tighter government regulation around customer data security and privacy will impact market demand. Citing the GDPR, the study states that the way data is handled across industries such as banking and healthcare will drum up demand for voice authentication software.

How Does Improved Speech Recognition Impact Customer Experience?

Customer security processes are about two factors: are you who you say you are and are you allowed to do what you are trying to do?

Until a few years ago, many businesses relied on trust that the caller was who they claimed to be – asking only for a name and address. Today, strong identity verification processes are now seen by virtually all businesses as critically important, and most make some attempt to verify a caller’s claimed identity by asking for additional information that only the real customer should know. The increasing focus upon fraud detection, strengthened by the need to comply with regulations, has meant that identity verification continues to become more important year-on-year.

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Identity theft is a high-profile issue. As such, businesses have had to tighten security and be seen to be doing so by their customers, as fraud prevention has now become a brand issue, as well as a regulatory one. While fraud certainly causes losses to a business, along with the threat of regulatory fines, the risk of losing customers’ confidence by being seen as lackadaisical about security is potentially a much greater negative. Criminals’ methods and the technology used have become more sophisticated, and businesses have had to respond by introducing more complex identity verification processes.

However, identity verification procedures have now become intrusive and inconvenient for the customer, who is expected to remember an increasing array of IDs, passwords, PINs, memorable information, details of their past transactions, or to carry smartcards or tokens everywhere they go. Customers can undergo a ‘Spanish Inquisition’ before being permitted to make their inquiry or place their order – which reduces customer satisfaction and also costs businesses time and money. It takes an average of 28 seconds to verify a customer’s identity manually. This mounts up considerably: the US contact center industry spends many billions of dollars each year, just to verify the caller is who they claim to be, and are permitted to carry out the action.

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According to NICE, over 30% more calls now require identity checks, which themselves take considerably longer due to more stringent testing. Although in-call efficiency has improved, identity verification is no faster than it ever was, all factors that drive up the initial identification costs.

77% of customers who authenticate identity do so through purely human means, taking an average of 28 seconds to do so. 23% use touchtone IVR or speech recognition (or both) to identify the caller, which itself takes around 20 seconds. However, in the majority of these cases, businesses first get the caller to use an IVR to collect their details, then also use the agent to double-check once the call is passed through, wasting the caller’s time and increasing the contact center’s costs.

With AI-powered voice recognition, businesses can significantly cut down on response times, deliver better customer experiences, and drive improved revenue outcomes. So, going forward, it will be interesting to see how the voice recognition industry evolves in light of increasing data privacy scrutiny and regulations in the U.S.