Amazon May Charge $5 to $10 a Month For Alexa

Amazon may begin charging a monthly fee for its Alexa assistant as the company tries to turn the unprofitable division around....
Amazon May Charge $5 to $10 a Month For Alexa
Written by Matt Milano
  • Amazon may begin charging a monthly fee for its Alexa assistant as the company tries to turn the unprofitable division around.

    Under CEO Andy Jassy, Amazon has been undergoing a number of cost-saving measures that have put a spotlight on divisions and products that are not profitable, such as Alexa. The company recently ended its Alexa Developer Rewards Program that paid developers to create Alexa apps.

    According to Reuters’ sources, the next step appears to be a paid Alexa service that heavily relies on the latest generative AI to help Alexa better compete in today’s market. Some of them said Jassy is personally invested in seeing Alexa significantly improve and become the “more intelligent and capable Alexa” he promised in a letter to shareholders.

    Amazon told Reuters that Alexa already included some generative AI elements.

    “We have already integrated generative AI into different components of Alexa, and are working hard on implementation at scale—in the over half a billion ambient, Alexa-enabled devices already in homes around the world—to enable even more proactive, personal, and trusted assistance for our customers,” said an Amazon spokeswoman in a statement.

    The project, codenamed “Banyan,” will focus on adding improved generative AI and conversational abilities to Alexa, allowing customers to ask for shopping device, compose emails, order meals from Uber Eats, all in a conversational manner that is impossible for the current “Classic Alexa.”

    Senior management has reportedly told some team members that 2024 is a “must win” for Alexa. Reuters’* source say the company is considering two AI-powered tiers to replace Classic Alexa, with plans to charge $5 or $10 per month for the more advanced tier.

    Despite the lofty goal, challenges remain. First and foremost is the question of whether consumers will pay for a feature that Amazon’s competitors are giving away for free.

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