Further convergence of the digital and physical worlds will power personalized experiences and this year, Amazon Alexa was the most buzzed-about topic in this space from the CES show floor. Amazon opened Alexa to all third-party devices in 2015, and the result was evident on the show floor with the Alexa badge displayed everywhere—in cars, TVs, speakers, home audio systems, refrigerators, personal robots and phones.

Voice-Activated Digital Assistants Are Even More Indispensable

Meanwhile, voice-activated digital assistants have hit an inflection point, powered by recent advances in accuracy. According to the Consumer Technology Association, voice assistant accuracy has improved from a 23 percent error rate in 2013 to “human parity” today. Better experiences have driven massive demand. Amazon sold millions of Alexa devices over the 2016 holiday season, with Echo sales in particular, up nine times year on year. Voice is now replacing screens, as voice-activated digital assistant shipments are expected to double in 2017.

Amazon Paves the Way for IOT

With Alexa’s recent success, Amazon may have taken the early lead as the “hub” for the Internet of Things. As most consumers aren’t interested in a piecemeal approach to connecting their homes, cars and the world around them, this is a key win for Amazon in the battle for IOT supremacy against rivals.