Amazon Introduces Alexa+:
This week in New York City, Amazon unveiled the next generation of its virtual assistant, Alexa+, which has been re-engineered to leverage agentic generative AI models. Senior executives, including CEO Andy Jassy and senior vice president Panos Panay, led the presentation, detailing the company’s journey with AI and how it led to the creation of this new version of Alexa, now built on generative AI and more natural user interfaces.
Alexa is already integrated into a variety of platforms, from smart home speakers and smartphones to automobiles and TVs. Alexa has always excelled in smart-home applications, particularly amplified by acquisitions such as Ring and Eero. Although Alexa has been available for several years and boasts a large user base, Amazon is catching up, as numerous companies are already offering agentic AI solutions for next-generation assistants. The era of agentic AI is relatively new, commencing last year, so these agents are still evolving and improving.
While Alexa+ may be entering the market later than some, Amazon’s approach may ultimately prove more user-centric, which should shape Amazon’s overall direction in consumer AI.
What’s New with Alexa+?
Amazon stated that Alexa+ is designed around four key pillars. The company’s aim is for Alexa+ to be:
- Conversational: Alexa+ is designed to feel less like a standard electronic assistant and more like a natural conversation partner.
- Personalized: Alexa+ is engineered to understand and adapt to individual user needs over time.
- Action-Oriented: Alexa+ is intended to take actions on the user’s behalf, like planning, shopping, and making arrangements.
- Smarter: Amazon wants Alexa+ to be a knowledgeable and approachable resource for users.
Amazon’s redesign of Alexa+ provides visual cues to show its understanding of user requests, using a combination of speech-to-text and blue icons to indicate how Alexa+ is responding. With Alexa now over a decade old, Amazon is seeking to transition users away from the typical “Alexa Speak” towards more natural and expressive conversational interactions. This also means users can now create routines by voice rather than needing to create them in the Alexa app.
During the presentation, Amazon showcased an interesting demo of Alexa+’s capability to find and jump directly to a music’s specific moment during a movie and use the example of the 2018 film A Star is Born on Prime Video. Voice commands also allow users to move music between rooms or even different sections of a room. Another demo showed the integration between Ring and Alexa+ to easily access video recordings for things like package deliveries or letting pets outside.
Amazon also demonstrated how Alexa+ can create shopping lists and easily integrate with services like Amazon Fresh and Whole Foods, making it simpler to order groceries. It also showed the capacity to request ingredients based on known recipes, with users having the ability to add their own recipes, simplifying meal planning.
The OpenTable integration is also interesting. Amazon states that Alexa+ will connect with thousands of services and devices, enabling Alexa+ to take actions for customers. This means partnering with companies beyond OpenTable, including Dyson, Plex, Samsung, and Hulu, to deliver next-generation home AI experiences. Over time, Alexa+ should be able to learn which apps to use based on understanding user intent; with so many connected apps in the ecosystem, there’s substantial potential for this feature.
Focus on the In-Home Experience
While Amazon was not the first to introduce an agent AI assistant, the company’s focus remains on improving the in-home experience. Alexa+ has not been discussed on mobile devices or in automobiles, areas where Amazon might see growth opportunities. Currently, the Alexa integration in my Mustang Mach-E is not very useful. Integrating with Alexa+ could change this. Amazon was on the right track by trying to integrate Alexa into the car because I believe that with increased autonomy, cars will become the mobile living room of the future. Being able to connect the device intelligence you have built at home with Alexa+ would be extremely powerful on the go in the car or on the phone. There are so many ways that Alexa+ could keep you informed about what’s going on at home through your phone, it seems inevitable that it would be more powerful with a better mobile experience.
Pricing and Availability
Amazon says that Alexa+ will cost $20 a month, but be free for Amazon Prime users. Early access begins in March, starting with the Echo Show 8, 10, 15, and 21 devices; the company also plans to support Alexa+ on most existing Alexa devices. Older smart speakers will be supported, and the ability to use Alexa+ will rely on those devices. The Echo Show 10 will create a good experience for users of the current product.
Analyst Takeaways from the Alexa+ Announcement
While Amazon might be considered late to the agentic AI space, the initial demonstrations of Alexa+ were impressive. Amazon has a deep understanding of the smart home market, and with Alexa+, it is building on that foundation. Amazon’s home integration very much feels like Alexa+ will live nicely in the kitchen, the living room, and even the bedroom. Amazon needs a stronger mobile and automotive presence to complement the in-home interactions with smart speakers and smart displays to take advantage of the automobile as a future “living room”.
If Amazon is successful in making the automobile a connected space, it could create a vast opportunity for Amazon. While Amazon struggled with building its own smartphones, a strong mobile app could potentially drive users down that path.
