During Amazon’s recent devices event, the tech giant dropped hints of transitioning Alexa from a free service to a chargeable one in the near future. The event showcased generative AI features that Amazon has been developing for Alexa, promising Echo users a glimpse of these capabilities in the upcoming months. These features include engaging in more dynamic conversations with Alexa, who can now express “opinions,” such as supporting a favourite sports team. The good news is that previewing these features won’t incur additional costs beyond the purchase of Echo hardware. At least for now.
Dave Limp, Senior Vice President of Devices and Services at Amazon, emphasized the substantial costs associated with evolving Alexa from a voice assistant that provides basic information, like the weather, to a generative AI chatbot capable of drafting emails based on prior discussions. Although Limp refrained from specifying a precise timeline for when Amazon would begin charging for access to Alexa, he assured that it’s not a distant prospect. He mentioned that Alexa would need to reach a “remarkable” level of functionality before this transition occurs. Importantly, Limp clarified that any subscription fees for Alexa would remain separate from Amazon Prime subscriptions or hardware purchases, which he believes already offer significant value.
While Amazon may be considering a model similar to OpenAI’s ChatGPT Plus subscription, it’s important to acknowledge that ChatGPT currently surpasses Alexa in terms of generative AI capabilities. Therefore, as ArsTechnica pointed out, it might take several years for Amazon to make Alexa as sophisticated and productive, enough for people to be willing to pay a fee to use it.
Nonetheless, Amazon appears to be taking steps to monetize Alexa sooner rather than later. The introduction of Alexa Emergency Assist, priced at $5.99 per month or $59 per year, underscores this intent. Amazon also recently discontinued Alexa Guard, which previously offered free home security features like smoke and glass break detection. Now, all of these features are bundled under Alexa Emergency Assist. It’s worth noting that the current prices are set to be in effect until January 8, and any potential price increases beyond that remain undisclosed.
Reports earlier suggested that Alexa could potentially incur a $10 billion loss for Amazon in 2022, which offers further insight into Amazon’s eagerness to monetize the service. Intriguingly, amidst these developments, Dave Limp, who has overseen the evolution of Echo smart speakers and the Alexa smart assistant since their inception, is departing the company by year-end to assume the role of Chief Executive at Jeff Bezos’s space venture, Blue Origin.
With a keen interest in tech, I make it a point to keep myself updated on the latest developments in technology and gadgets. That includes smartphones or tablet devices but stretches to even AI and self-driven automobiles, the latter being my latest fad. Besides writing, I like watching videos, reading, listening to music, or experimenting with different recipes. The motion picture is another aspect that interests me a lot, and I'll likely make a film sometime in the future.