Amazon is reportedly planning a major update for its Alexa voice assistant, introducing a two-tier subscription service that could cost users $5 to $10 per month. This new service, codenamed “Banyan” and referred to internally as “Remarkable Alexa,” is expected to launch as early as August 2024. CEO Andy Jassy has made this project a priority, aiming to deliver a “more intelligent and capable Alexa” to users.
The new service will leverage generative AI technology, providing users with access to a more powerful AI model. This model will be able to answer more complex questions, draft basic emails, and even order food through Uber Eats, all with a single prompt.
The current free version of Alexa, internally dubbed “Classic Alexa,” will remain available, but users will need to pay a monthly fee to access the enhanced features of “Remarkable Alexa.” This move comes as Amazon seeks to revitalize Alexa in the face of competition from other AI-powered assistants like Siri, Gemini, and ChatGPT.
While Amazon has already integrated some generative AI features into Alexa, the company has been slower than its rivals in deploying this technology. Sources have suggested that Amazon considers 2024 a critical year for Alexa, despite the recent layoffs within the division.
Amazon showcased prototype generative AI features at its annual device event last September, but these features are yet to be available to consumers. The new paid service is intended to address this gap and provide users with a more robust AI assistant.
It remains to be seen whether users will be willing to pay for a product they have been using for free, particularly given the availability of other AI-powered assistants like Siri, Gemini, and ChatGPT. It’s unclear if the subscription service will offer any tie-ins with Amazon’s Prime membership.
Despite the potential challenges, Amazon’s move highlights the growing importance of generative AI technology in the digital assistant market. The success of “Remarkable Alexa” will depend on its ability to offer users a significant improvement over the current free version of Alexa while remaining competitive with other AI-powered assistants.
