Corporate

Parks Associates says AI is changing smart speakers as Amazon leads displays

Parks Associates says AI is changing the smart speaker market, with half of U.S. internet households owning a smart speaker or display and Amazon taking 78% of recent smart display purchases.

Parks Associates said on Aug. 4 that artificial intelligence is changing the smart speaker market as consumers increasingly expect devices to provide personalized, context-aware help.

The research firm said the shift matters because smart speakers and smart displays are already widely used. Parks Associates said one-half of U.S. internet households own a smart speaker or smart display, calling the category one of the largest installed device bases in the connected home.

The company also said Amazon accounted for 78% of recent smart display purchases. Parks Associates said that share reflects Amazon’s position in the connected home ecosystem.

The findings came from the company’s Consumer Insights: Tech Ecosystem Dashboard and AI Experience Dashboard. Parks Associates said AI is creating replacement opportunities in a mature category by expanding smart speakers’ role from voice assistants to intelligent companions.

The release cited Bloomberg reporting that OpenAI is developing a portable, screenless AI companion as an example of a broader move toward AI-native connected home experiences.

Parks Associates also pointed to Amazon’s recent report that U.S. customers who use Alexa for Shopping on Amazon spend an average of over 40% more per order than those who do not. The company used that example to show how connected-home devices can support commerce and engagement.

Elizabeth Parks, president and CMO of Parks Associates, said smart speakers have reached mass-market adoption and that future growth will come from intelligence rather than hardware. She said the industry is moving toward more personalized, AI-driven experiences.

Parks Associates said device makers, broadband providers, security companies, utilities and smart home platform providers can use conversational AI to create recurring service opportunities and improve engagement and satisfaction.

The company said it will host an industry webinar, “Understanding the Smart Home Market: Adoption, Competition, and Growth,” on Tuesday, Aug. 11. Parks Associates said the session will cover security, access control, energy management, AI-enabled experiences and whole-home ecosystems.