Amazon Considers Premium AI-Powered Alexa as Subscription Service

Amazon Considers Premium AI-Powered Alexa as Subscription Service

Amazon is reportedly gearing up for a major overhaul of its Alexa voice assistant, potentially introducing a more capable, AI-driven version as a paid add-on to Prime memberships. This move, detailed in a recent Reuters report, signals Amazon’s push to revitalize Alexa in the face of growing competition from generative AI chatbots.

The ambitious project, codenamed “Banyan,” is said to involve two distinct versions of Alexa. The star of the show is “Remarkable Alexa,” a significantly upgraded assistant powered by generative AI. This premium version promises to handle complex, multi-step tasks from a single command – think drafting emails and placing orders simultaneously. It’s also slated to offer more natural conversations, eliminating the need to repeat “Alexa” for each request.

Remarkable Alexa’s capabilities extend to smart home automation as well. The AI could potentially create routines automatically based on your habits, like starting your coffee maker when it hears your alarm. Amazon is also reportedly aiming to enhance Alexa’s integration with a wider range of smart devices, allowing for more comprehensive voice control throughout the home.

However, this leap in functionality may come at a cost. Sources suggest Amazon is considering pricing Remarkable Alexa as a monthly add-on to Prime memberships, potentially at $5 or $10. This could bring the total monthly Prime cost to between $19.99 and $24.99.

The second version in development seems to be a moderately upgraded replacement for the current “Classic Alexa,” also incorporating AI enhancements but likely remaining free.

This strategic shift comes as Amazon faces pressure to turn Alexa into a profitable venture. The rise of generative AI chatbots has put additional strain on Alexa’s market position, prompting this “desperate attempt” to revitalize the service, according to insider sources.

While Amazon is reportedly pushing for an August launch of Remarkable Alexa, the timeline, pricing, and even the project’s continuation remain fluid. The tech giant will likely be watching development progress closely before making final decisions.