Amazon Unveils Alexa+ with Generative AI and Subscription Model
Amazon has announced a major update to its Alexa digital assistant, integrating generative AI capabilities and introducing a subscription service, dubbed “Alexa+.” The move signals a shift in Amazon’s approach to its voice-activated AI, as the company seeks to revitalize Alexa and make it more competitive in the quickly-evolving artificial intelligence landscape.
Panos Panay from Devices and Services at Amazon speaks during an Amazon Devices launch event in New York City, U.S., February 26, 2025.
Panos Panay, Amazon’s senior vice president of devices and services, revealed the upcoming changes at a launch event in New York. The new service will cost $19.99 per month, but will be available for free to Amazon Prime members, with an early access rollout scheduled for next month. “Every once in a while, a technology comes around and it changes everything,” Panay stated. “[Large language models] enter the stage and fundamentally change the way we think about AI. … It’s shaken up everything.”
Alexa+ is engineered to perform a broad range of tasks powered by generative AI. These include functionalities such as purchasing concert tickets, ordering groceries, making dinner reservations, and providing tailored recipe suggestions for a user’s household. Moreover, the AI assistant can read study guides followed by quiz questions about their contents, as well as manage handwritten documents and extract related data.
“She’ll learn the rhythm of your life and proactively take action with you,” Panay explained.
Daniel Rausch, Amazon’s vice president of Alexa and Fire TV, highlighted that the upgrade involved a “complete re-architecture” of Alexa, explaining that it was not as straightforward as incorporating a large language model with the original Alexa. The system will utilize a wide variety of the latest, most modern kinds of training models from different sources, including the company’s existing Nova models as well as the ones designed by third parties. The intention is to make Alexa more than just a tool for simply answering inquiries, but also an “agent” that can perform actions on behalf of the user. Amazon showed the new service researching and scheduling an oven repair service to demonstrate this capability. According to company representatives, Alexa+ can complete user tasks, and provide results via the Alexa app or SMS messaging. Ann Wessing, Amazon’s worldwide general manager and product marketing director for Alexa and Echo, stated during a demonstration after the event that the “best Alexa+ experience” will be available on a touch screen Echo device. The current plan is to start Alexa+ rollouts with Echo Show devices.
The integration of generative AI is Amazon’s response after the launch of OpenAI’s ChatGPT in late 2022, which impressed users with its ability to complete complex tasks.
“They recognize they need to get this right and if they do get it right, then maybe we’re talking less about OpenAI vs. Anthropic and more of Alexa vs. ChatGPT,” said Tom Forte, senior consumer internet analyst at Maxim Group.
Industry analysts suggest that the introduction of a subscription fee has a strategic purpose. Jitesh Ubrani, a research manager overseeing devices and wearables at IDC, believes that the subscription model could offset the high costs of AI development and enhance Alexa’s profitability. Last May, CNBC sources reported that Amazon was already looking into the possibility of a monthly Alexa subscription. “You look at any generative AI system out there, and they all have very high development costs,” said Ubrani. However, Ubrani also expressed caution that Amazon should be careful with a paid service to avoid alienating their Prime subscribers. The company will need to demonstrate the capabilities of the new Alexa to justify the subscription, he said. OpenAI offers a free version of ChatGPT, as well as a premium subscription for $20 a month. Anthropic’s Claude chatbot also has a paid subscription option costing $20 monthly. “Their audience is already very large, so even transitioning a small portion of those users to a subscription could bring them a fair amount of money,” Ubrani commented.
An Echo Show 21 with the new Alexa + software is displayed at an Amazon Devices launch event in New York City, U.S., February 26, 2025.
Since its launch in 2014, Alexa has been an important project for Amazon founder Jeff Bezos. However, it has not yet delivered on its promise. The company has sold more than 500 million Alexa devices worldwide, as of 2023. Despite this wide adoption rate, the majority of users still use Alexa for simple tasks. Alexa is not yet a profitable undertaking. Amazon hopes to turn Alexa interactions into increased sales of other goods and services.
Amazon CEO Andy Jassy has closely scrutinized, or in some cases discontinued, several of the company’s more unproven or money-losing projects. That included the devices and services unit, which houses Alexa. The unit underwent two rounds of layoffs as part of companywide job cuts in 2022 and 2023, in which more than 27,000 Amazon employees were let go.
