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Alexa is renewed: Amazon focuses on generative artificial intelligence and monthly subscriptions

New features and economic opportunities to improve the Alexa user experience

Amazon is revamping Alexa with paid versions equipped with generative artificial intelligence. The goal is to make it smarter and more profitable, using it to facilitate purchases on Amazon and introducing monthly subscriptions.

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Amazon is ready to revamp Alexa, the voice assistant released in 2014 that has populated over 500 million homes globally but which to date has not generated significant profits. According to Reuters, more advanced versions of Alexa could hit the market as early as the end of the summer. The new proposals will include a generative artificial intelligence service, aiming to offer users a more intelligent and performing assistant. Andy Jassy, CEO of Amazon, already anticipated in April the intent to make Alexa "more capable and smart". On the business front, the goal is clear: to turn Alexa into a source of revenue, both by strengthening its role as a tool to facilitate purchases on the Amazon platform and by introducing a monthly subscription for users.

Remarkable Alexa: the new paid versions

New versions of Alexa, presumably called Remarkable Alexa, will no longer be free. Reuters suggests the service will cost a minimum of $5 a month. Additionally, there may be two different versions: a basic and a premium, with the latter requiring a monthly fee of around $10 to perform more complex operations. Internal discussions at Amazon are still finalizing the details, but the intent to make Alexa a product that can finally produce profits is clear. The integration of generative artificial intelligence promises to raise the capabilities of the voice assistant to previously unheard of levels, improving interaction and efficiency in daily use.

Bridging the gap in artificial intelligence

Amazon's main goal is to make up for lost ground in the field of generative artificial intelligence compared to giants like OpenAI and Google. While ChatGPT and Bard have made significant strides, Amazon has yet to launch a next-generation AI-powered version of Alexa, despite its announcement last September. 2024 must be a decisive year for Alexa, according to company sources, with strong pressure from top management to accelerate development. The launch of the new product is scheduled for August, although an official date has not yet been confirmed. The success of this project will be measured primarily in commercial terms, aiming to make the voice assistant not only extraordinary, but also economically advantageous.

The bet on purchases and commercial requirements

Amazon's ultimate goal is to see whether the new version of Alexa will be able to stimulate complex searches that lead users to make purchases on the platform. There is a lot of expectation about the results of this initiative, given the large investments and high ambitions of the project. In the months to come, the effectiveness of Remarkable Alexa will be evaluated not only in terms of technical performance but above all through its ability to generate concrete profits. Amazon's strategy aims to transform the voice assistant into a key element of the business ecosystem, opening up new opportunities for e-commerce while maintaining a high degree of technological innovation.

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06/24/2024 08:55

Marco Verro

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