In-vehicle purchases future of SoundHound AI's chat assistant

SoundHound AI (SOUN) shares lift off, shooting up by over 22% in Wednesday's trading session after the AI-powered speech recognition developer unveiled a partnership with Stellantis (STLA) in European vehicles.

SoundHound AI co-founder and CEO Keyvan Mohajer comes onto Market Domination to explain the advancements in AI chatbot models in cars and how transactions and in-vehicle could easily be in the future for consumer convenience.

"So for years, consumers have accepted that digital assistants in cars and devices are limited... But by integrating generative AI into the assistant very seamlessly, consumers can ask questions about anything and everything," Mohajer tells Yahoo Finance. "And they ran pilots. The numbers spoke for themselves: usage went up multiple folds, loyalty went up multiple folds. Users want it and they are expanding it across their brands."

Mohajer goes on to expand upon the capabilities of SoundHound's generative AI digital assistant.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Luke Carberry Mogan.

Video Transcript

Sound Sound A I, those shares are surging after the company announced an expansion of its voice assisted product, the NVIDIA back company launching Sound How Chat A I in some stances, vehicle brands throughout Europe.

Joining us to discuss the technology is Soundhound A I co founder and Ceo Kvo Moha.

Good to see you KVO.

Um So first of all, just talk to us about what this announcement means, which cars and if I'm in one of these cars, how is this gonna work?

Great.

Thank you for having me back.

It's good to be here.

Uh Yeah, we are very proud that we announced with Tant that uh they're launching the San Chat A I voice assistance uh in several brands including peo uh across 17 new markets in 12 languages.

Um And let me tell you a little bit more about what, what that is and why it's so important.

So for years, consumers have accepted that digital assistance uh in cars and devices are limited, you can just set timers, navigation digit dialing and so on.

But by integrating generative A I uh into the assistance very seamlessly, consumers can ask questions about anything and everything and you can have a never ending conversation about it.

Uh And they ran pilots, the numbers spoke for themselves, usage went up, multiple folds loyalty went up, multiple Folds, users wanted it and they are expanding it across their brands and, and KVO.

Um I, I know investors who are listening right now.

Listen, their question is gonna be, how KVO are you thinking about this?

Absolutely.

And it's a great question.

We announced in our last earnings that San Cha is an Upsell feature, uh both to our customers and their customers.

So, um when we have our basic assistant that does the functionalities of the car, uh we worked on it for almost two decades.

We are across 20 brands.

Uh So we provide that already to a lot of factors.

And if you want to upgrade to chat A I, it's an additional royalty.

So our revenue will have a positive impact by seeing the adoption of A I.

So what can you tell us now about the effect, your projected effect on revenue from getting this product into more vehicles?

How are you guys modeling it out?

Uh So if you look at the last four years, our company has had a healthy growth of about 50% on average or more than 50% revenue growth year over year.

Uh We are maintaining that uh for this year and we are also announcing that next year our revenue will cross uh uh $100 million.

Um This was in our last earning.

Um and um um what's next after uh sat nav chat A I which brings generate A I into the, the cars is monetization.

So if you have an assistant now that you can have a never ending conversation, you can ask you about any question, ask you to answer things and get things done for you.

The next thing is to ask you to do transactions.

Uh So you can, while you're driving and imagine you can their food before you get to the drive through, you can order to your car and then your food will be ready.

When you get there, you can have it be delivered to your house.

Uh You can make reservations, you can book appointments, you can do voice commerce and we are building that uh and that ultimately will increase our revenue and we will share that revenue with our car makers.

Uh so that uh our product becomes the revenue source for them.

Cavan.

I'm curious, you know, we were earlier talking about Apple and its new A I integration with Siri won't that sort of make what you're talking about somewhat obsolete.

Like if I have my iphone, I in my car with me and I can talk to it, won't it do all of what you're describing?

Not at all.

Uh So Apple is uh provides uh its technology to its own products.

Um And uh we focus on Um Well, two verticals, one is visual assistance for physical products like cars and TV S and it devices and A I customer service.

And we don't really see the big tech play in that.

Um And the amount of integration we also don't expect them to go because the integrations we've done.

It has taken um 1020 years to build all the features for cars integration maps in connect with the features of the car, controlling the car uh and service providers that uh the cars makers want to bring to their users.

Uh The two are uh that don't really compete with each other.

We are the default assistant of the car.

So when you get in your car, you press the button or you say a Wakeboard, it invokes our assistance and we don't really see that as an issue.

The other thing I want to mention is that we uh we are very fast to integrate native A II I believe you are the, the, the fastest uh to bring a into a digital assistance uh within months.

Um It took Apple and other companies more than a year to do it and, and they've only announced it.

Uh we are, we are live in uh with uh in products and the way we did it is incredibly amazing.

Uh It's so seamless when you ask about domains that we provide versus domains that might have to go to JG BT.

The user doesn't have to know where, where the answer comes from.

Uh And they can go back and forth between them, Kon, you, you mentioned uh your other business, you know, the drive through business.

So you your software interpreting.

Uh when I, when I speak into the box, when I place that, that order, I'm just curious, Kevin, how, how you sort of see that drive through business kind of evolving and changing because when, when I speak KVO to financial analysts, um who cover your company, you know, they're excited about that.

At least some of them, I mean, they really see that as a business where there's a potentially a lot of runway, you know, there are things that is, it's easy to know that will happen for sure.

Right.

Um And one of them for me is in three years, if I go to a driver, am I gonna talk to a human or I'm gonna, it's gonna be automated.

And to me the answer is obviously it's gonna be automated.

When was the last time you had a great experience talking to a driver human that you had to go write a Yelp review, right?

So, um uh that's something that is gonna be automated.

The technology is ready.

We are already live with multiple brands, they love it.

They the uh employees of the restaurant love it, the uh Drive, Drive, uh really enjoy it.

Uh And we are already getting a doctor.

So it is just a matter of time.

KVO.

Always appreciate having you on the show.

Thanks for making time for us.

Thanks so much.