Amazon’s Alexa is set to get a dose of Artificial Intelligence (AI). The company has sent out invites for a major event on February 26 in New York, where it is expected to unveil an upgraded version of Alexa, its voice assistant.
According to Reuters report, the event will be hosted by Panos Panay, the head of Amazon’s devices and services team, and is anticipated to focus on the new generative AI capabilities powering Alexa. While the details of the event remain under wraps, it marks a pivotal moment for Amazon as it revamps Alexa to keep up with advancements in artificial intelligence.
Alexa’s ambitious generative AI upgrade
The new version of Alexa is expected to serve more than its traditional role of being a voice assistant. It aims to become a sophisticated and multi-functional agent. The new Alexa will be capable of handling multiple prompts in a sequence and take actions on behalf of users, all without requiring constant interaction.
This generative AI-powered Alexa promises to be more conversational, capable of remembering user preferences and offering personalized recommendations for things like music and dining options.
Rollout and monetisation plans
Initially, the new Alexa will be available to a limited group of users and, for now, will not carry a fee. However, there are discussions about eventually charging a subscription fee of $5 to $10 per month. Classic Alexa, the free version, will continue to be offered to users, though Amazon is no longer adding new features to it. The generative AI-powered Alexa, codenamed “Banyan” internally, is expected to launch on a broader scale only after it meets certain quality standards, following repeated delays in development.
A tough road ahead
Amazon’s ambitious vision for Alexa mirrors the goals set by Jeff Bezos back when Alexa was first launched in 2014. Bezos had hoped to create a voice assistant capable of handling everything from controlling smart home devices to writing emails and even making restaurant reservations. Yet, the current version of Alexa has fallen short of this vision, being largely limited to basic tasks like setting timers, providing weather updates or playing songs.
The integration of generative AI into Alexa presents both significant opportunities and risks for Amazon. Analysts suggest that if even a small portion of Alexa’s user base, estimated to be over 100 million devices, subscribes to the new service, Amazon could generate hundreds of millions of dollars annually. However, to succeed, Alexa must overcome challenges related to AI’s accuracy and its ability to genuinely add value to users’ lives. Amazon is relying on technology from Anthropic, a startup in which it has invested $8 billion, to power the AI behind Alexa.
With Reuters inputs