This initiative is a response to the pressure to succeed in the AI industry, where Amazon, Google, and Apple have invested billions without significant returns. There is renewed interest in smart assistants as interfaces for next-generation AI. Amazon is developing its own AI models to compete with others in the market. If successful, this could turn Alexa into a profitable venture, but failure could bring it closer to discontinuation.
Key takeaways:
- Amazon's digital assistant, Alexa, is not generating any revenue and is a drain on company resources. The company is planning to revamp it with AI and charge users for its use.
- The new service, tentatively named "Alexa Plus," is reportedly not functioning well due to issues with AI and technology. It is also causing internal disagreements within Amazon, as many employees doubt customers will be willing to pay for it.
- Amazon is testing the new technology, called "Remarkable Alexa," with 15,000 customers. However, it has been reported to be good at conversations but poor at performing useful tasks.
- This initiative is a response to the pressure to make an impact in the AI business. If it fails, it could bring Alexa closer to discontinuation.