The move comes as Amazon faces increased pressure from advancements in AI technology and the development of new AI chatbots. The company has been criticized for being behind in AI, and the Alexa team has been tasked with making the device more relevant amid the new competition. The team has undergone a significant reorganization, with many shifting to the artificial general intelligence (AGI) team. Amazon plans to use its own large language model, Titan, in the Alexa upgrade.
Key takeaways:
- Amazon is planning to upgrade its Alexa voice assistant with generative artificial intelligence and may charge a monthly subscription fee to offset the cost of the technology.
- The upgraded Alexa, expected to be more conversational, will not be included in the $139-per-year Prime offering and the price point is yet to be determined.
- Amazon's CEO, Andy Jassy, has reportedly been underwhelmed with Alexa's current capabilities, leading to a massive reorganization within the Alexa team and a shift towards artificial general intelligence.
- Despite the challenges, Amazon's large installed user base and the fact that Alexa is already present in millions of homes is seen as an opportunity. However, there is concern that mistakes could be more costly if Alexa doesn't understand a command or provides unreliable information.