Amazon Launches New AI-Powered Alexa, Introducing Subscription Model
NEW YORK (AP) — Amazon has unveiled a revamped Alexa, infused with generative AI, promising a more personable and versatile voice assistant. The update, dubbed “Alexa+,” offers new capabilities like checking a user’s tone and even planning romantic dates, according to Amazon. However, unlike the previous free iteration of Alexa on any enabled devices, the new AI-powered version comes with a monthly subscription fee of $19.99.
For Prime members, who already pay monthly or annual fees for benefits like free delivery, the generative-AI powered Alexa will be available at no additional cost. Amazon showcased the upgraded digital assistant at a media event in New York City, emphasizing the new features’ potential to increase sales and improve user interactions with Alexa-enabled devices.
Enhanced Capabilities and Conversational Abilities
During the presentation, Amazon highlighted several key improvements. Executives claim Alexa+ can engage in more natural, human-like conversations and become more personalized over time, learning about user preferences such as dietary needs and allergies. “I’m not just an assistant, I’m your new best friend in the digital world,” Alexa+ stated during a live demonstration.
Panos Panay, Amazon’s senior vice president of devices & services, detailed the additional functions of the re-designed assistant. The new Alexa can generate study plans, send text messages to babysitters, and call an Uber for a friend. Executives also demonstrated Alexa’s ability to retrieve videos from Ring cameras, such as checking if a dog was walked, and remember handwritten recipes, emails, and other shared documents. According to Panay, “She’s smarter than she’s ever been before, but she’s also approachable.”
Integration and Market Positioning
Alexa is presently incorporated into various products, including smart speakers, Amazon’s Fire TVs, and earbuds. Amazon, based in Seattle, launched the voice assistant and the initial Echo device in 2014. Panay reported that the company has sold over 600 million Alexa-enabled devices, with user engagement increasing by 20% last year compared to 2023. Market analysis indicates that Alexa maintains the largest market share among voice assistants.
The updated Alexa employs large language models. These include some developed by Amazon, as well as others from Anthropic, the generative AI startup in which Amazon has invested billions. Danile Rausch, Amazon’s vice president for Alexa and Echo, indicated that Alexa+ features a “model-agnostic system,” enabling it to choose the ideal AI model for each task.
Limited Rollout and Future Plans
Amazon intends to begin an “early access” phase for Alexa+ in the U.S. next month. It will start with users who own or purchase some of the newest Echo Show devices. These have on-screen displays of Alexa responses. Qualified users who opt in will have Alexa+ functioning across compatible devices, as well as on their web browser and app, the company stated.
This will be followed by staggered international rollouts and expansion to additional devices. Some of the new features will only be available on products with screens. Amazon stated that certain older Echo models will not support Alexa+, but existing owners will still be able to use the original assistant. Users who prefer the original Alexa can continue doing so, according to a company FAQ.
Amazon’s announcement comes over a year after the company previewed an early version of the AI-infused Alexa at a media event highlighting new devices. At the time, Amazon indicated it was developing a “speech-to-speech” model designed to allow Alexa to exhibit human-like characteristics, such as laughter and utterances like “uh-huh” during conversations. During the demo, Amazon showcased features that were previously undisclosed. In one demonstration, Panay showed Alexa a video of the crowd in the room to test a feature that purportedly allows it to sense the surrounding mood. Panay asked Alexa+ if the crowd “looked pumped,” and its response was the journalists were “paying attention to you and excited.” Like its predecessor, Alexa+ is triggered when users say the wake word “Alexa,” but executives stated that users now only need to say the word once, before having an extended, back and forth exchange.
Despite the advancements, Amazon faces competition in the smart speaker market, including Apple and Google. While the company has had success in device sales, its goal of driving Amazon purchases through Alexa has proven challenging. While Amazon claims that Alexa users have used their devices to shop, many use Alexa for routine tasks, such as playing music, asking questions, or checking the weather. Implementing a subscription model is expected to offset AI development costs and improve the profitability of Amazon’s devices division.
This story was corrected to show that Panos Panay is Amazon’s senior vice president, not vice president, of devices & services.
