Amazon is planning to upgrade its Alexa voice assistant with generative artificial intelligence and introduce a monthly subscription fee to cover the costs associated with the new technology. The Seattle-based company intends to release a more conversational version of Alexa later this year to compete with other generative AI-powered chatbots from companies like Google and OpenAI. While the pricing for the Alexa subscription has not been finalized, it will not be included in the existing Prime offering. Amazon has declined to comment on its plans for Alexa.
Recent advancements in artificial intelligence, including OpenAI’s GPT-4o and Google’s Gemini, have raised concerns about Alexa and Siri, Apple’s voice assistant. Amazon has faced internal pressures to innovate and upgrade Alexa to keep up with the competition. Since Andy Jassy took over as CEO in 2021, Alexa’s relevance has decreased internally, with Jassy expressing disappointment in the current capabilities of the voice assistant. The Alexa team has undergone reorganization, with a significant portion shifting to the artificial general intelligence team.
As of 2023, Amazon has sold over 500 million Alexa-enabled devices, establishing a strong presence in consumers’ homes. Despite this, challenges remain, including the need to attract AI engineering talent and the high cost associated with using generative AI in Alexa. Internally, there have been discussions around pricing the Alexa subscription, with estimates ranging from $2 per query to a single-digit dollar amount. Amazon’s recent investment in AI startup Anthropic and the use of its own large language model, Titan, in the Alexa upgrade demonstrate the company’s commitment to advancing its AI capabilities.
Amazon faces competition in the AI space from companies like OpenAI, Google, and Meta, who have already made significant strides in AI technology. The company has been working on building a more intelligent and capable Alexa to stay relevant in the fast-evolving AI landscape. Apple is also expected to unveil a more conversational Siri at its annual developers conference in June. Leveraging its existing Alexa user base, Amazon sees an opportunity to improve Alexa and provide more advanced AI capabilities to its customers.
The development of new AI chatbots has put pressure on Amazon to innovate and enhance Alexa’s capabilities to keep pace with the changing AI landscape. With generative AI workloads being expensive and a shortage of AI engineering talent, Amazon must find ways to effectively integrate this technology into Alexa while keeping costs manageable. Alexa’s presence in millions of homes gives Amazon a unique advantage, but the stakes are high, and the company must ensure that Alexa remains reliable and capable of meeting users’ needs. Amazon’s focus on building a more intelligent Alexa underscores its commitment to staying competitive in the AI market and providing innovative solutions to its customers.
