Research in speech recognition and synthesis over the past several decades has brought speech technology to a point where it is being used in "real-world" applications. However, despite the progress, the perception remains that the current technology is not flexible enough to allow easy voice communication with machines. The focus of speech research is now on producing systems that are accurate and robust but that do not impose unnecessary constraints on the user. This chapter takes a critical look at the shortcomings of the current speech recognition and synthesis algorithms, discusses the technical challenges facing research, and examines the new directions that research in speech recognition and synthesis must take in order to form the basis of new solutions suitable for supporting a wide range of applications.After many years of research, speech recognition and synthesis systems have started moving from the controlled environments of research laboratories to applications in the real world. Voice-processing technology has matured to such a point that many of us wonder why the performance of automatic systems does not approach the quality of human performance and how soon this goal can be reached.Rapid advances in very-large-scale integrated (VLSI) circuit capabilities are creating a revolution in the world of computers and communications. These advances are creating an increasing demand for sophisticated products and services that are easy to use. Automatic speech recognition and synthesis are considered to be the key technologies that will provide the easy-to-use interface to machines.The past two decades of research have produced a stream of increasingly sophisticated solutions in speech recognition and synthesis (1). Despite this progress, the perception remains that the current technology is not flexible enough to allow easy voice communication with machines. This chapter reviews the present status of this important technology, including its limitations, and discusses the range of applications that can be supported by our present knowledge. But as we look into the future and ask which speech recognition and synthesis capabilities will be available about 10 years from now, it is important also to discuss the technical challenges we face in realizing our vision of the future and the directions in which new research should proceed to meet these challenges. We will examine these issues in this paper and take a critical look at the shortcomings of the current speech recognition and synthesis algorithms.Much of the technical knowledge that supports the current speech-processing technology was created in a period when our ability to implement technical solutions on real-time hardware was limited. These limitations are quickly disappearing, and we look to a future at the end of this decade when a single VLSI chip will have a billion transistors to support much higher processing speeds and more ample storage than is now available.The speech recognition and synthesis algorithms available at present work in ...