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Amazon plans to price its AI and this is what we know

Julián Castillo's avatar

By Julian Castillo

May 23, 2024, 18:55 PM EDT

Amazon plans to transform Alexa into a paid service, a significant change that could redefine the virtual assistant market. This new version, tentatively called “Alexa Plus”, is expected to include advanced capabilities powered by artificial intelligence (AI), which will improve its responsiveness and conversational interaction.

Amazon wants to monetize Alexa

This move responds to Amazon’s need to find a way to monetize Alexawhich until now has primarily served as a tool to drive additional sales on its e-commerce platform.

Since its launch in 2014, Alexa has been available at no additional cost to users, integrating into a wide range of devices such as smart speakers and displays. However, recent improvements in artificial intelligence, which make Alexa “smarter” and capable of maintaining more natural conversations, have significantly increased the development and maintenance costs of this technology.

Alexa Plus

The new service Alexa Plus will not be included in Amazon Prime membership, which means that users will have to pay an additional monthly subscription to access the new advanced features. This decision has generated controversy among both Amazon employees and users, many of whom already pay for various company services, such as Amazon Music and Prime Video. Critics argue that adding another fee could discourage consumers from adopting the improved version of Alexa.

Despite these challenges, Amazon is moving forward with the development of Alexa Plus, which It is currently being tested by approximately 15,000 users external. Early reports from these tests indicate that the service still faces significant issues, such as slow and sometimes incorrect responses. Additionally, Alexa Plus has struggled to handle multiple tasks simultaneously, such as playing music while controlling smart home devices, something the free version of Alexa handles without issue.

When will Alexa Plus be available?

Amazon’s goal is to launch Alexa Plus at the end of June 2024. However, there is growing concern within the company about whether the current problems can be resolved in time. Some employees have suggested postponing the launch to ensure the product is ready and meets user expectations.

Amazon’s decision to make Alexa a paid service marks a major strategic shift in its approach to virtual assistants and artificial intelligence. Although this new version promises an improved and more interactive user experience, initial reception and technical challenges could influence its ultimate success. The coming months will be crucial to see if Alexa Plus can deliver on Amazon’s promises and gain acceptance from users willing to pay for its advanced capabilities.

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