This initiative is crucial for Amazon, which has invested billions into Alexa since its introduction in 2014, aiming to integrate the service across various devices and ultimately boost sales on its primary e-commerce platform.
“Alexa knows almost every instrument in your life, your schedule, your smart home, your preferences, the devices you’re using, the people you’re connected to, the entertainment you love and use many of the apps you use, a lot of the services you need,” stated Panos Panay, Amazon’s head of devices and services, during a launch event in New York.
The newly introduced service, named Alexa+, aligns with the naming conventions of premium tiers in various tech and streaming services, according to Panay.
For Amazon Prime members, Alexa+ is available at no additional cost, while non-Prime users can access it for $19.99 per month. The service went live on Wednesday and will gradually roll out to more users starting in March.
Panay showcased how Alexa can remember user preferences through prompts, such as noting that a household member is vegetarian and enjoys Greek and Italian cuisine while avoiding peanut butter. It can assist with making dinner reservations and sending scheduled texts or reminders.
Additionally, the service can interface with Amazon products like Ring doorbells to display recordings from their cameras.
Mara Segal, Alexa's director, mentioned that Alexa can analyze documents, such as homeowners association agreements, to inform residents about permissible actions, like the installation of solar panels.
Following the announcement, Amazon's stock increased by approximately 2%, reaching $217.02.
The event also revealed a previously confidential project, internally referred to as “Banyan,” which aims to enhance Alexa's conversational capabilities.
Generative AI refers to a form of artificial intelligence that learns from data and evolves over time.
Although Amazon's Alexa was introduced three years after Apple’s Siri became available on iPhones, it played a significant role in popularizing voice assistants. However, the absence of substantial updates and enhancements to Alexa over the years has led to a decline in consumer engagement, particularly in the current AI-driven landscape.
Apple has integrated its AI capabilities, known as Apple Intelligence, into Siri, while Google has refreshed its voice assistant with the AI chatbot Gemini.
Alexa is a voice-activated software found in devices like smart speakers, enabling users to ask questions, play music, set timers, and control home automation by connecting to internet-enabled devices, allowing actions such as turning on lights through voice commands.
The upcoming Alexa AI service will feature the ability to process multiple requests in succession and function as an “agent,” performing tasks for users without requiring their direct input.
This is a departure from the current version, which typically manages only one request at a time.
Executives have discussed the possibility of charging up to $10 per month for the new service, as reported by sources to Reuters, in an effort to recover some of the investments made in this unprofitable venture.
Amazon has not yet provided specific information regarding pricing.
The company has indicated that there are approximately 500 million Alexa-enabled devices in consumers' hands, making this revamp a significant revenue opportunity for the Seattle-based retailer, while also posing a considerable financial risk if it fails to meet expectations.
Daniel Rausch, vice president of Alexa and Echo, acknowledged the role of AI startup Anthropic in developing Alexa+, confirming a report from Reuters that Anthropic’s Claude is a key component of the service.