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Amazon Plan to Update Its Unprofitable Alexa, Introducing Generative AI for Upgraded Service

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Amazon Plan to Update Its Unprofitable Alexa, Introducing Generative AI for Upgraded Service

In a Nutshell

The upgraded version of Alexa is expected to be available in both free and paid tiers, with the latter offering advanced AI features for a monthly fee of $5 to $10.

Amazon is planning a major revamp of its Alexa service, which has been operating at a loss for the past decade. The project, known internally as "Banyan," aims to introduce a conversational generative AI to enhance the user experience.

This would be the first significant overhaul of the voice assistant since its launch in 2014 alongside the Echo line of speakers. Amazon has named the new voice assistant "Remarkable Alexa."

"Remarkable Alexa" And "Traditional Alexa"

To make the revamped Alexa service financially viable, Amazon is considering implementing two tiers of service. The basic version would remain free, while the superior version would come with a monthly fee.

The company has been contemplating a fee of around $5 to access the enhanced features of the paid version. However, there have also been discussions about a higher monthly fee of approximately $10.

CEO Andy Jassy has set a deadline of August 2024 for the preparation of the newest version of Alexa. This indicates that Amazon is prioritizing the revamp of its voice assistant and intends to introduce it to users in the near future.

Jassy has expressed personal interest and commitment to seeing Alexa reinvigorated, as mentioned in a letter to shareholders in April.

Amazon's new voice assistant, "Remarkable Alexa," aims to compete with the generative AI capabilities of its rivals, such as Google, Microsoft, and OpenAI.

These companies have received positive attention for their chatbots, which can respond almost instantaneously to complex prompts. With the introduction of Remarkable Alexa, Amazon hopes to catch up and provide users with a more sophisticated AI experience.

The Offering Of More Advanced AI Capabilities for Paid Subscribers

The paid version of Remarkable Alexa would provide advanced AI capabilities to subscribers. For starters, users would be able to perform more intricate tasks, such as composing emails and ordering Uber Eats, all from a single prompt.

One of the key benefits of the paid version of Remarkable Alexa would be enhanced personalization. The AI software would learn from users and adapt to their preferences, offering a more tailored experience.

Additionally, users would no longer need to repeatedly say the activation phrase, making interactions with Alexa more seamless and natural.

While Amazon offers a range of benefits through its Prime membership, the paid version of Remarkable Alexa would not be included as part of this package. Users would be required to pay a separate monthly fee to access the advanced AI capabilities.

Improvements Of Remarkable Alexa

In addition to providing a superior AI experience, Remarkable Alexa would bring improvements to home automation capabilities. Users would be able to wirelessly connect Alexa to smart devices, enabling voice control over various aspects of their home.
For example, Alexa could turn on porch lights or set a coffee pot to brew after the user's morning alarm goes off.

Remarkable Alexa has the potential to learn from user patterns and make proactive adjustments based on their preferences. By observing user behavior, the voice assistant could automatically power on the television for a favorite program or perform other routine actions.

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Amazon's AI-powered 'Remarkable Alexa' could cost up to $10 per month

Amazon is playing catch-up in the generative AI race, but the company could change that this August with Remarkable Alexa.

Amazon’s money-bleeding Alexa division could face more cuts if a paid version of its AI-enabled voice assistant flops, BofA says

Amazon is pushing for profitability in its embattled Alexa division with a new plan to offer customers an AI-powered version of its voice assistant for $5 to $10 per month.

On This Page

  • "Remarkable Alexa" And "Traditional Alexa"
  • The Offering Of More Advanced AI Capabilities for Paid Subscribers
  • Improvements Of Remarkable Alexa