Amazon is reportedly preparing to launch a subscription-based version of its Alexa voice assistant, featuring generative artificial intelligence. The suggested cost would be $10 per month. This new version, potentially named “Alexa Plus” or “Remarkable Alexa,” will offer advanced conversational AI capabilities. The basic version of Alexa will remain free.

The company aims to release this upgraded version as soon as August, though the timeline may change. This follows recent improvements to Alexa on Fire TVs, designed to enhance the search experience for movies and TV shows.

Amazon’s push for a subscription model is part of its strategy to address significant financial losses. Reports indicate that Alexa’s division faced substantial losses in 2022, leading to job cuts and increased pressure on the remaining team.

 

 

Many wonder whether users, who already pay for other Amazon services such as Amazon Prime, will be willing to pay extra for this new version of Alexa. Currently an Amazon Prime membership is $139 with the basic Alexa included. For most Americans money is tight and households that are already feeling the strain might not feel the additional features are worth the extra charge.  

Initial testing of the new technology, involving 15,000 customers, has shown mixed results. While the AI demonstrates advanced conversational abilities, it has also produced long or inaccurate responses that can be frustrating to users.

 

 

This initiative aligns with Amazon’s broader strategy to reverse over $25 billion in losses from its devices business between 2017 and 2021. The new Alexa version aims to offer improved task management and learning capabilities. However, the technology has faced delays and technical challenges, raising doubts about its readiness and user acceptance.

The subscription model may face additional challenges due to the availability of free AI assistants from competitors like ChatGPT, Google Gemini, and upcoming updates to Siri. Amazon’s approach will need to navigate these competitive dynamics to succeed.

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