Amazon is planning to launch a new version of its voice assistant, Alexa, featuring advanced artificial intelligence (AI). This new version is expected to come out later in 2024 and will offer more conversational abilities similar to popular chatbots like ChatGPT. Unlike the current Alexa features that come with an Amazon Prime subscription, this new version will require a separate subscription fee. Some employees think that it might cost around $20 per month to cover the expenses of using this advanced technology.
In January, it was reported that Amazon had been testing this new Alexa, which was initially called Remarkable Alexa, with 15,000 customers. However, the final name might be Alexa Plus. The test results were somewhat disappointing because the AI's responses did not meet expectations. Despite these early setbacks, Amazon believes that the new AI will make Alexa much smarter and capable of having more human-like conversations.
Last year, Amazon said that this new language model would allow users to have more natural and engaging interactions with Alexa. More recently, during a company earnings call in the second quarter of 2023, Amazon's CEO, Andy Jassy, talked about the importance of generative AI. He emphasized that this technology is crucial for improving every customer experience Amazon offers.
However, Alexa is starting to look outdated compared to newer chatbots. For example, the latest model of ChatGPT, called ChatGPT-4o, can have conversations so natural that it feels like talking to a real person. On the other hand, Alexa sometimes struggles with simple tasks, like turning on a light. This comparison highlights the need for Amazon to update Alexa to stay competitive.
As of 2023, Amazon reported selling over 500 million Alexa-enabled devices. However, a 2022 report pointed out that many customers stop using Alexa soon after they start. The report found that about 25% of new Alexa device owners stopped using the assistant within two weeks. This shows that while Alexa devices are popular, keeping users engaged with the assistant is a challenge for Amazon.
Amazon is optimistic that the new, more advanced Alexa will help overcome these challenges. By integrating a more sophisticated AI, they hope to offer a better user experience that keeps customers coming back. The idea is that with smarter and more conversational abilities, Alexa will be more useful and engaging, encouraging people to use it more regularly.
Overall, Amazon is betting big on the future of AI. The new subscription-based Alexa with advanced AI is a key part of their plan to stay ahead in the competitive market of voice assistants and smart devices. By offering a more intelligent and engaging experience, Amazon hopes to retain more customers and continue to lead in the industry.