How much are you willing to pay for an AI-boosted Alexa?

How much are you willing to pay for an AI-boosted Alexa?
How much are you willing to pay for an AI-boosted Alexa?

Known internally as “Banyan,” the new Alexa represents the first major overhaul of the voice assistant since it launched in 2014 with the Echo speaker line. Amazon has dubbed the new voice assistant “Remarkable Alexa,” according to Reuters.

A necessary transformation for Alexa

Several sources from the press agency specified that Amazon was pushing its teams towards a deadline in August to launch this new version of Alexa, under the personal supervision of CEO, Andy Jassy. In a letter to shareholders in April, the latter had promised an Alexa “ more intelligent and capable“, without providing further details. Amazon’s plans for Alexa, including pricing and release dates, could be changed or canceled depending on the progress of Project Banyan.

« We’ve already integrated generative AI into various components of Alexa and are working hard to implement it at scale – across the more than half of the billion Alexa-enabled devices already in homes around the world – to deliver even more proactive, personal and trusted support to our customers. ” said an Amazon spokeswoman.

Amazon is preparing two versions of Alexa as part of its major overhaul. The first version, called “Remarkable Alexa,” will be powered by basic generative AI, with customization and voice command features. The second, more powerful version will use a more powerful AI model to handle more complex queries and tasks, such as writing emails or ordering food. Amazon plans to offer this enhanced version through a monthly subscription of $5 to $10. This access would not be included in a Prime membership.

For Amazon, keeping up with the competition in generative AI is crucial as Google, Microsoft and OpenAI have gained more attention for their chatbots that can respond almost instantly with full sentences to complex queries or questions. Even poor Siri will benefit from the contribution of Apple Intelligence, Apple’s AI.

ChatGPT’s launch in late 2022 sparked an investment frenzy in AI companies and propelled chipmaker Nvidia ahead of Amazon and others in market capitalization.

Some Amazon employees who worked on the project consider Banyan to be a “ desperate attempt ” to revitalize the service, which has never been profitable and has been blindsided by the rise of generative AI services over the past 18 months. Management reportedly said this year was crucial to demonstrate that the service could generate meaningful sales for Amazon.

Alexa is mostly used to set timers, quickly get the weather, play music or answer simple questions. Amazon’s hopes of boosting sales for its e-commerce business through the service have failed, largely because users prefer to see the products they’re buying to make comparison shopping easier. Can an Alexa powered by generative AI do better?

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