Amazon is preparing to launch a paid version of its Alexa voice assistant as part of a strategic overhaul to address significant losses in its devices business.
The division suffered over $25 billion in losses from 2017 to 2021. The new AI-enhanced Alexa, which may be priced at up to $10 per month, could debut as soon as this month, the Wall Street Journal has said.
Despite the imminent launch, there are internal concerns about the project’s readiness. An employee who worked on the Alexa team revealed to the WSJ that the division is rushing to meet the deadline, even though “the technology isn’t there.” David Limp, Amazon’s former head of devices, first announced the company’s plans for a subscription-based Alexa last year.
This upgraded Alexa is expected to feature generative AI capabilities, allowing it to handle multiple tasks from a single prompt and learn from user interactions to create customized routines.
However, reports indicate that Amazon has struggled to keep the project on track. A recent Fortune article suggested that Alexa is far from achieving Amazon’s goal of becoming “the world’s best personal assistant,” citing technical and organizational challenges.
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Additionally, there are doubts about consumer willingness to pay for an Alexa subscription, especially given the $139 annual cost of Amazon Prime. With competitors like ChatGPT, Google Gemini, and an upcoming improved Siri offering free access to their AI assistants, Amazon may face difficulties convincing users to pay for the enhanced version of Alexa, while the basic version remains free.
