However, the report suggests that Amazon's strategy could be a mistake, as the company currently lacks the niche features that justify subscription costs for its competitors. Instead, it is suggested that Amazon should follow Apple's model, which offers AI features for free as part of its product offering. The report also questions the potential demand for a paid Alexa subscription, suggesting that Amazon could instead enhance Alexa's capabilities to boost sales of its own products and Prime memberships.
Key takeaways:
- Amazon is reportedly considering a paid tier for its Alexa voice assistant, which could cost between $5 and $10 per month, and could be called “Remarkable Alexa”.
- The new AI assistant would feature enhanced artificial intelligence-based features, joining the likes of Google, Microsoft, and OpenAI in asking consumers to pay a premium for AI software.
- Amazon's Remarkable Alexa could order food for delivery or compose an email, but it's unclear why people would pay a monthly fee for it.
- The article suggests that Amazon should follow Apple's strategy of offering AI features for free as a means to sell more of its products, rather than charging for a standalone AI service.