Technology

Amazon to Overhaul Alexa with AI and Subscription Fees

May 22, 2024 1 min read

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Amazon is planning to upgrade its Alexa voice assistant with generative artificial intelligence and introduce a monthly subscription fee to offset the cost of the technology. The new, more conversational version of Alexa is expected to launch later this year, positioning it to better compete with AI-powered chatbots from companies like Google and OpenAI. The subscription fee for Alexa will not be included in Amazon's $139 per year Prime offering, and the price point has not yet been determined.

The move comes amid increased internal pressure to make Alexa profitable, a challenge that has persisted since its introduction in 2014. The development of new AI chatbots has heightened this pressure, with current Amazon CEO Andy Jassy reportedly underwhelmed by Alexa's current capabilities. Since founder Jeff Bezos' departure, the Alexa division has been subject to strict profit imperatives. Amazon did not immediately respond to a request for comment on the planned changes.

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