Amazon Considers Monthly Fee for Revamped Alexa with AI Boost
Amazon is planning a significant revamp of its Alexa service, which has been unprofitable for the past decade. The company intends to introduce a conversational generative AI with two tiers of service, potentially including a monthly fee of around $5 for the premium version. Internally named "Project Banyan," this initiative represents the first major overhaul of the voice assistant since its launch in 2014. The revamped service, dubbed "Remarkable Alexa," is expected to be launched in August.
The new version of Alexa aims to replace the current free service with an AI-powered one, offering a more advanced tier that uses complex software for sophisticated queries. Amazon's plans for this upgrade could be subject to change or cancellation based on the progress of Project Banyan. CEO Andy Jassy has shown a personal interest in reinvigorating Alexa, amid rising competition from AI-powered chatbots developed by companies like Google, Microsoft, and OpenAI. This move comes as Amazon seeks to enhance its AI capabilities and potentially boost sales through its e-commerce operations.
