In response, Amazon, like Google and Apple, is turning to generative AI to improve Alexa's conversational skills and make it more useful. The company has been encouraging third-party developers to create skills and has previewed Alexa's generative AI-powered future. The success of these efforts will likely determine whether Alexa survives the next decade.
Key takeaways:
- Amazon's devices division, including the Alexa unit, has reportedly lost $25 billion between 2017 and 2021, with $10 billion lost in 2022 alone.
- Despite the popularity of Alexa, most queries involve simple tasks such as playing music, controlling lights, and setting timers, leading to criticism that the company has built a "smart timer".
- Amazon has been working to improve Alexa's conversational skills and usefulness, with generative AI seen as a potential game changer for the assistant.
- The future of Alexa will depend on how the next few months play out, with the company hoping to make a conversation with Alexa as natural as talking to another human.