Despite this, Amazon is pushing forward with its Alexa-focused strategy, developing a sprawling app store for the device and selling it at a low price to establish it as the dominant voice assistant. The company hopes the new updates will transform Alexa from a novelty to an indispensable tool, with the possibility of charging a fee for the technology in the future. However, it remains to be seen whether consumers are interested in having complex conversations with a robot.
Key takeaways:
- Amazon has announced updates to its suite of smart devices, including a large language model (LLM) for Alexa, which will allow the virtual assistant to understand complex sentences and make engaging conversation.
- Despite these updates, Amazon's internal data shows that 15-25% of new Alexa users stop actively using the voice assistant after their second week, with those who continue to use it mainly utilizing it for simple commands.
- Amazon is attempting to transform Alexa from a gimmick to an indispensable tool, with the possibility of an eventual fee for the technology.
- However, there is a disconnect between Amazon's goals and what consumers actually want, with many customers not interested in having complex conversations with a robot.