Amazon’s voice assistant is hanging on by a thread. And that thread is generative AI—or, in Amazon’s case, Alexa+.
Amazon hasn’t had a problem getting people to buy cheap, Alexa-powered gadgets. However, the Alexa in millions of homes today doesn’t make Amazon money. It’s largely used for simple tasks unrelated to commerce, like setting timers and checking the weather. As a result, Amazon’s Devices business has reportedly been siphoning money, and the clock is ticking for Alexa to prove its worth.
Alexa+, a subscription-based generative AI service ($20 per month or included with Prime, which starts at $15/month), is supposed to solve Amazon's woes with Alexa. More conversational and powerful than the original Alexa, Alexa+ is designed to play a more central role in user transactions, enabling, in theory, Amazon to finally make money from voice assistants after 11 years.
