Amazon is poised to launch a paid version of its Alexa voice assistant, in a bid to recoup the more than $25 billion it lost in the smart home industry between 2017 and 2021. The new AI-powered version of Alexa, which could cost as much as $10 a month in the US, could be available as early as the end of this month, the Wall Street Journal reported. But there are concerns within the company about how well it will be received. A former member of the Alexa team told the Wall Street Journal that the division is working frantically to meet the deadline, even though “the technology is not ready yet.” Former Amazon devices chief David Limp announced plans for an improved, paid version of Alexa last year.
The new Alexa, powered by generative AI, is expected to be able to perform multiple tasks with a single command, learning from users’ habits to create personalized routines. However, Amazon appears to be running into delays in the project. Another area of concern for employees is whether users will be willing to pay for an additional subscription on top of Amazon Prime. With competing voice assistants like ChatGPT, Google Gemini, and the upcoming improved version of Siri all being offered for free, Amazon may have a hard time convincing customers to pay for Alexa, especially given that the current version will remain free.
