Amazon is finally giving Alexa the AI upgrade we’ve all been waiting for. The tech giant announced a major overhaul of its voice assistant, introducing a new service called Alexa+, powered by generative AI. But here’s the catch—unlike before, Amazon will now charge a $19.99 monthly subscription fee to access Alexa+. The good news? Prime members get it for free.
Alexa+ is designed to be more than just a voice assistant that tells you the weather or plays your favorite song. Thanks to advanced AI, Alexa+ can now take proactive actions on your behalf.
Here’s what you can expect:
Amazon’s senior VP of devices and services, Panos Panay, described Alexa+ as an AI-powered assistant that “learns the rhythm of your life” and takes actions accordingly.
Alexa+ will be available on almost all existing Alexa-enabled devices, though Amazon demonstrated its best performance on the Echo Show (Alexa’s voice-controlled touchscreen device).
Daniel Rausch, Amazon’s VP of Alexa and Fire TV, emphasized that this upgrade isn’t just about plugging a Large Language Model (LLM) into Alexa. Instead, the team completely re-architected Alexa’s framework, using multiple AI models, including Amazon’s Nova models and third-party AI like Anthropic’s Claude chatbot.
This move comes as Amazon faces growing pressure to keep up with AI advancements. Ever since OpenAI’s ChatGPT took the world by storm, traditional voice assistants like Alexa have started to feel outdated.
Amazon wants to change that. The company is positioning Alexa+ as an AI-powered agent, not just a Q&A tool. For example, you can now ask Alexa+ to research oven repair services, and it will not only find options but schedule an appointment for you. No need to follow up—Alexa+ will send the details via the Alexa app or even text them to your phone.
Unlike before, when Alexa was free for all, Amazon is now introducing a paid subscription model. While this move might seem risky, it’s a necessary step to cover AI development costs. According to Jitesh Ubrani, a research manager at IDC, “Every generative AI system out there has high development costs.”
Other AI services, like ChatGPT Plus and Anthropic’s Claude Pro, also charge around $20 per month. The difference? Amazon already has millions of Alexa users, so converting even a small portion into paying subscribers could generate significant revenue.
However, Amazon must be cautious—Prime members already pay $139 annually for their membership. Convincing users that Alexa+ is worth an additional fee (for non-Prime members) will be key to its success.
Amazon has sold over 500 million Alexa devices globally, but Alexa itself has never been profitable. Initially, Amazon didn’t charge for access, hoping Alexa would drive users to buy more Amazon products. That strategy didn’t pan out, and the company reportedly lost tens of billions of dollars on its device business, including Echo, Kindle, and Fire TV.
Now, Amazon is betting big on AI-driven capabilities to make Alexa more useful—and, ideally, more profitable. But will users be willing to pay for Alexa+, especially with free AI chatbots like ChatGPT available?
Amazon’s revamp of Alexa with Alexa+ is a bold move, aiming to turn the voice assistant into a truly AI-powered personal assistant. With capabilities like booking services, managing tasks, and personalized recommendations, Alexa+ could redefine how we interact with AI at home.
The big question remains: Will users see enough value to justify the $19.99/month fee, or will they stick with free AI alternatives? Only time will tell, but one thing is clear—Alexa is stepping up its game in the AI race.
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