When Alexa meets strategy: The new economics of Voice AI

“Hey Alexa, what’s the weather today?”
It’s a sentence millions of us say without thinking—but behind that simple command lies a multibillion-dollar puzzle that’s keeping executives awake at night. Voice AI, the technology that lets humans talk to machines, has become one of the most visible frontiers of artificial intelligence. Yet while adoption has soared, profits have not. Amazon reportedly lost $10 billion on Alexa in 2022, and Microsoft quietly retired Cortana the following year. How can something so popular still struggle to make money?

We address this question in our study published in the European Journal of Marketing (2025). We argue that the real challenge isn’t technical—it’s strategic. Companies have rushed to deploy voice assistants, but few have asked the deeper question: How do we create and capture value once the novelty fades? Their answer redefines how we should think about technology investments in an AI-driven world.

Voice AI (VAI) has moved far beyond smart speakers. It now powers customer service, healthcare triage, financial queries, and even factory operations. Analysts project that the global voice-tech market will reach $50 billion by 2029, expanding at a rate of more than 20 per cent annually. Yet most firms remain stuck between early enthusiasm and sustainable monetisation. The study identifies a ‘strategic chasm’: organisations know how to adopt VAI but not how to profit from it. Traditional frameworks—like the Technology Acceptance Model that measures perceived usefulness and ease of use—fall short because they only explain why users try a technology, not how firms benefit after adoption. To bridge this gap, we conducted an ambitious three-part investigation:

Using grounded-theory methods, we built a new framework for ’value creation and appropriation’—i.e., how companies can make Voice AI pay off.

Three insights that flip conventional wisdom

1. Integration doesn’t always mean investment

Common sense says the easier a technology is to integrate, the more companies will invest. The study finds the opposite. When Voice AI fits neatly into existing systems—say, adding Alexa compatibility—firms often spend less, relying on off-the-shelf solutions rather than developing their own. The paradox: seamless integration encourages standardisation, not innovation.

Only when regulation demands tighter data control—such as in banking or healthcare—do firms shift toward proprietary systems. In other words, the same “ease of use” that drives adoption can discourage differentiation. For managers, this flips the logic of digital transformation: success may require building friction back in, crafting unique voice capabilities that competitors can’t copy.

2. Regulation is no longer a footnote

Most tech strategies treat regulation as an external nuisance. This paper shows it’s now a central variable shaping investment. In highly regulated sectors, privacy and data rules can either stall adoption or force costly custom solutions. Firms operating under such constraints invest selectively, often choosing to ‘buy’ technology rather than build it to reduce compliance risk. But some turn this pressure into opportunity: by developing in-house, regulation-compliant systems, they gain trust and control over valuable customer data.

The takeaway is profound: regulation has shifted from obstacle to strategic differentiator. Companies that can innovate within constraints may actually create stronger, more defensible positions.

3. Human-like voices, human-level dilemmas

The most surprising insight concerns anthropomorphism—the design of AI to sound or act human. Marketers have long believed that giving machines a personality builds trust. The study refutes that story. Across four common use cases—search, content, personal assistance, and voice commerce—the authors found sharply different reactions.

Companies must calibrate the ‘human factor’ by context, not assume that more emotion equals more engagement. As one participant noted, ‘People like that Alexa listens—but not that she remembers.’

How Voice AI rewires business value

The researchers propose that VAI creates value along two intertwined paths—B2C and B2B—and that the real breakthroughs happen when firms integrate the two. In B2C markets, voice technology enhances convenience, accessibility, and emotional connection. It lowers entry barriers for non-digital users and strengthens brand engagement. In B2B markets, VAI cuts costs, improves efficiency, and opens new licensing or white-label revenue streams.

Here’s the catch: consumer comfort drives business confidence. When users happily adopt voice interactions, enterprise clients are more willing to invest. This ‘pull effect’ means that the path to enterprise monetisation begins in the living room. Firms that understand this loop design their strategies accordingly. The result is an ecosystem where value flows both ways—consumer adoption validates business investment, and enterprise innovation enhances consumer experience.

Turning voice into value

Why this matters now

Voice interfaces are fast becoming the new front door to the digital world. From smart homes to hospitals, from banking bots to agricultural helplines, they are redefining who can access technology and how. In markets like India, where literacy and language diversity once limited digital inclusion, Voice AI could democratise the internet. But without clear strategies for value creation and appropriation, the technology risks becoming another expensive convenience. The research reminds us that AI is not destiny—it’s a design. The future belongs to organisations that treat Voice AI not as a gadget but as an evolving relationship between humans, machines, and markets. Those who master integrating B2C empathy and B2B efficiency will turn conversations into capital.

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