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Uses

Hands-free operation (eg. In a car).
Can be used to dictate text rather than typing (Voice recognition).
Video conferencing.
Add narrations in presentations, videos.
Input speech for VoIP – Voice over Internet Protocol, an inexpensive way of conducting phone calls using internet.

Advantages

Can be used by disabled people to input data/instructions.
Can improve safety for car phones.
Inexpensive.

Disadvantages

Background noises can cause problems for voice recognition systems.
Voice recognition systems are inaccurate
Sound files, when stored, take up a lot disk space.