Amazon (NASDAQ:) is reportedly mulling a significant overhaul of its decade-old Alexa service, aiming to incorporate conversational generative AI with two service tiers.
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.
Internally named “Banyan,” after the expansive ficus trees, this project marks the first major update to the voice assistant since its launch in 2014 alongside the Echo speakers. The revamped voice assistant is being referred to as “Remarkable Alexa” inside the company.
Reuters said its sources revealed that Amazon is pushing for an August deadline to launch the newest version of Alexa, with CEO Andy Jassy showing a 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 further.
The future of Alexa, including pricing and release dates, remains flexible and could change based on the progress of Project Banyan, the report states.
“We have already integrated generative AI into different components of Alexa and are working hard on implementation at scale—in the over half a billion ambient, Alexa-enabled devices already in homes around the world—to enable even more proactive, personal, and trusted assistance for our customers,” an Amazon spokeswoman said in a statement.
The Alexa service, known for providing spoken answers to user queries and serving as a hub for controlling home appliances, was a pet project of Amazon founder Jeff Bezos. Bezos envisioned a technology that could emulate the fictional voice computer from Star Trek.
However, some employees who have worked on the project reportedly describe Banyan as a “desperate attempt” to revitalize a service that has yet to turn a profit and has lagged behind competitive generative AI products over the past 18 months. These employees have been told by senior management that 2024 is a crucial year for Alexa to prove its ability to generate meaningful sales for Amazon.
With the integration of AI, Amazon anticipates that Alexa users will ask for shopping advice, such as recommendations for mountain climbing gear, similar to the text-based service “Rufus” that Amazon introduced earlier this year, Reuters says.
The company plans to replace the current free version of Alexa, referred to internally as “Classic Alexa,” with an AI-powered version. There will also be a higher-tier version utilizing more advanced AI software for complex queries 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 envisioned paid version could handle intricate tasks such as composing and sending a brief email or ordering dinner from Uber Eats, all from a single prompt. It would also eliminate the need to repeatedly say “Alexa” during conversations and offer greater personalization. However, some employees expressed skepticism about customers’ willingness to pay for a service that is currently free, even with the added capabilities.
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