Amazon is set to enhance its Alexa voice assistant with generative artificial intelligence, planning to charge a monthly subscription fee to offset the technology’s costs, according to sources familiar with Amazon’s plans. The Seattle-based company aims to release a more conversational version of Alexa later this year, potentially increasing its competitiveness against AI-powered chatbots from Google and OpenAI. This subscription will be separate from the $139-per-year Prime offering, with the price point still undecided.
Amazon has not publicly commented on these plans. While Alexa impressed consumers with voice-driven tasks in 2014, it now appears outdated amidst recent AI advancements. OpenAI’s GPT-4o and Google’s generative AI features for Gemini highlight this shift. Business Insider first reported Amazon’s intentions to revamp Alexa and introduce a new subscription model in 2024. Former Amazon SVP David Limp had mentioned the possibility of charging for a more advanced Alexa version.
Recent AI developments have increased pressure on the Alexa division, which was once a priority for Amazon founder Jeff Bezos. After Andy Jassy became CEO in 2021, the focus shifted towards profitability, reducing Alexa’s internal priority. Jassy’s dissatisfaction with Alexa’s current capabilities, such as its inability to answer live sports scores, further underscores the need for improvement.
Amazon’s recent shareholder letter from Jassy indicated ongoing efforts to enhance Alexa with substantial generative AI applications. The reorganization of the Alexa team into the artificial general intelligence (AGI) group is part of these efforts. Despite Alexa being in over 500 million devices, Amazon faces challenges in advancing its AI capabilities compared to competitors like OpenAI, Microsoft, and Google. The cost of generative AI, estimated at 2 cents per query, presents a pricing challenge for the subscription model.
Amazon’s significant investment in AI startup Anthropic and the use of its own large language model, Titan, in the Alexa upgrade highlight the company’s commitment to AI advancement. Bezos remains involved in Amazon’s AI strategy, emphasizing the importance of not falling behind in this critical technology sector.