Amazon (NASDAQ:) is reportedly considering a major overhaul of its decade-old Alexa service, aiming to integrate conversational generative AI with two levels of service.
According to Reuters, citing sources familiar with the company’s plans, Amazon is considering charging a monthly fee of around $5 for access to the superior version.
This project, internally called “Banyan” after the sprawling ficus trees, marks the first major update to the voice assistant since it launched in 2014 alongside the Echo speakers. The updated voice assistant is called “Remarkable Alexa” within the company.
Reuters said sources revealed that Amazon is pushing for an August deadline to launch the latest version of Alexa, with CEO Andy Jassy showing keen interest in rejuvenating the service. In an April letter to shareholders, Jassy promised a “more intelligent and capable Alexa,” though he did not elaborate.
The future of Alexa, including pricing and release dates, remains flexible and may change based on the progress of Project Banyan, the report said.
“We have already integrated generative AI into several components of Alexa and are working hard to deploy it at scale – across the more than half a billion Alexa-enabled devices already in homes around the world – to make things even more proactive, personalized and reliable. become. help for our customers,” an Amazon spokeswoman said in a statement.
The Alexa service, known for providing spoken answers to user questions and serving as a hub for controlling home appliances, was a pet project of Amazon founder Jeff Bezos. Bezos envisioned a technology that could imitate the fictional voting computer from Star Trek.
However, some employees who worked on the project reportedly described Banyan as a “desperate attempt” to revive a service that has yet to turn a profit and has lagged behind competing generative AI products over the past eighteen months. These employees have been told by senior management that 2024 is a pivotal year for Alexa to prove its ability to generate meaningful sales for Amazon.
With the integration of AI, Amazon expects Alexa users will ask for shopping advice, such as rock climbing gear recommendations, similar to the text-based “Rufus” service that Amazon introduced earlier this year, Reuters says.
The company plans to replace the current free version of Alexa, internally called “Classic Alexa,” with an AI-powered version. There will also be a higher version that uses more advanced AI software for complex questions and tasks, which could cost at least $5 per month. The tech giant has also considered a price tag of around $10 per month, the report adds.
The intended paid version would be able to perform complicated tasks like composing and sending a short email or ordering dinner from Uber Eats, all from a single prompt. It would also eliminate the need to repeatedly say “Alexa” during calls and offer greater personalization. However, some employees were skeptical about customers’ willingness to pay for a service that is currently free, even with the additional features.
