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Amazon's new AI-powered Alexa promises to be your 'best friend in a digital world' for a monthly fee

Feb 26, 2025 - financialpost.com
Amazon has introduced a new version of its Alexa voice assistant, called Alexa+, which incorporates generative AI to enhance its capabilities. This updated version aims to provide a more personalized and humanlike interaction, allowing it to understand user preferences and perform tasks such as planning romantic dates or creating study plans. Unlike the previous free version, Alexa+ will require a monthly fee of $19.99, although it will be free for Amazon Prime members. The new features are designed to boost sales and user engagement with Alexa-enabled devices, which have already seen a 20% increase in usage over the past year.

The revamped Alexa uses advanced AI models, including those developed by Amazon and the startup Anthropic, to deliver a more natural conversational experience. It will be available on various Alexa-supported devices, with some features exclusive to devices with screens. Amazon plans to roll out early access to Alexa+ in the U.S. next month, followed by an international release. The company aims to offset AI development costs and improve the profitability of its devices through the subscription model, as it continues to compete with other tech giants like Apple and Google in the smart speaker market.

Key takeaways:

  • Amazon has introduced a new AI-powered version of Alexa called "Alexa+", which requires a monthly fee of $19.99, but is free for Prime members.
  • Alexa+ is designed to have more personality and can perform tasks such as planning romantic dates, creating study plans, and calling an Uber.
  • The revamped Alexa uses large language models and has a "model-agnostic system" to select the best AI model for tasks, with early access starting in the U.S. next month.
  • Amazon aims to offset AI development costs and increase profitability of its devices operations through the subscription fee for Alexa+.
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