Amazon’s Alexa division has been operating at a loss since its inception in 2014, facing billions in losses. However, there is hope that incorporating artificial intelligence (AI) could turn things around.
According to a recent report by Reuters, Amazon is considering moving towards a subscription model for a higher AI-powered version of Alexa. The upgrade would include more advanced AI capabilities and could potentially bring in much-needed revenue for the company.
The current plan involves upgrading the free version of Alexa with AI features, while also introducing a subscription-based “Remarkable Alexa” with even more sophisticated AI capabilities. The subscription fee is rumored to be between $5 to $10 per month.
Meanwhile, the basic version of Alexa, known as “Classic Alexa,” will remain free for users. This potential shift to a subscription model would mark a significant change in Amazon’s approach to its voice assistant.
Amazon’s Echo devices featuring Alexa have been popular since their launch, but a recent report revealed that most units are sold at cost. The introduction of AI-powered subscriptions could be a game-changer for Amazon’s smart home ecosystem.
Amazon has already teased a generative AI version of Alexa in September, showcasing its enhanced conversational abilities and improved context recognition. With over half a billion Alexa-enabled devices sold, the introduction of AI features is eagerly awaited by customers in the U.S.
Amazon Echo Show 8 previewing new Alexa AI features. Credit: Al Drago/Bloomberg via Getty Images
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