Google’s New Group Messaging App Allo
http://www.nytimes.com/2016/09/22/technology/personaltech/allos-tryout-5-days-with-googles-annoying-office-intern.html?ref=personaltech
This article is a review of Google’s new messaging app, Allo. Allo is different from other messaging apps in that it uses an artificial intelligence in order to make suggestions and search for things online automatically to benefit the user. However, Allo joins many other messaging apps that are already in use, from iMessage, Facebook Messenger, GroupMe, Slack, Google Hangouts, and more. As a result, it may be difficult for consumers to have an incentive to learn how to use Allo, when there are already so many good options for messengers. Additionally, Allo’s AI is pretty useless at the moment, making bad suggestions, and not providing much good information. With so many messaging apps, each one can specialize in its own tasks. For example, iMessage allows users to send personalized emoticons and sketches, for more personalized messaging, while Slack is better suited for the business environment.
The article relates to the network effects on new technologies that we have been learning in class. Messenger apps are clearly strongly affected by network effects, as if few people use the app, the app is pretty useless to try to talk to people. In the example of Allo, it remains to be seen if Allo will explode and reach an upper equilibrium, or if the initial users will find that it is not worth it and the use of Allo will fall to 0. One way that Allo could spread is if a small community, such as a group of friends, or a company, adopts Allo, and as a result the use of Allo can spread out from a small tight knit community. Additionally, if Google can improve Allo’s AI, the app could fill a specific niche that will give users more of an incentive to adopt the new technology.