Seattle, Washington – Amazon is reported to be working on a major update to its Alexa assistant, potentially introducing a paid subscription model for the service. According to sources familiar with the matter, the new version of Alexa will feature advanced conversational generative AI capabilities, with Amazon considering offering two tiers of service to users.
The upcoming version of Alexa is said to include a free tier, along with a premium tier that could cost users between $5 to $10 per month. This premium tier will not be bundled with Amazon’s Prime subscription, which costs $139 per year. The move to introduce a paid subscription for Alexa comes as Amazon aims to enhance the functionality of its voice assistant, which has not undergone any significant updates in the past decade.
Amazon employees, speaking on condition of anonymity, have referred to the upcoming revamp of Alexa as a “desperate attempt” to reinvigorate the service. Executives at Amazon have emphasized the need for Alexa to drive meaningful sales, indicating the company’s focus on monetizing the popular AI assistant.
Internally known as “Remarkable Alexa,” the updated version of the voice assistant is expected to offer new features such as composing emails, providing shopping recommendations, and facilitating ordering from services like Uber Eats. Additionally, Amazon plans to improve the integration of Alexa with smart home devices, allowing users to automate routines more efficiently.
Amazon is targeting an August completion date for the revamped Alexa, with a planned launch later this year. In a similar move, Apple is also working on enhancing its Siri assistant with large language models. However, many of the new functions for Siri are not expected to be available until 2025, showcasing the competitive landscape in the AI assistant market.