Amazon Plans Paid AI-Powered Alexa
Last fall, Amazon hinted at a paid version of Alexa, and now Reuters reports that the company is considering a two-tiered subscription plan for a generative AI-powered version of the digital assistant.
According to sources familiar with the matter, a paid Alexa service could cost between $5 and $10 per month, though these prices are not final. Amazon aims to finalize the details by August, likely to announce it at its annual devices event in the fall. The 2023 event in September previewed an enhanced Alexa that has yet to be released.
During that event, former Amazon executive David Limp confirmed that a subscription model for Alexa was being considered. He emphasized that the service would need to offer significant value before customers are charged. “Before we would start charging customers for this — and I believe we will — it has to be remarkable. It has to prove the utility that you’re coming to expect from the ‘superhuman’ assistant,” Limp said, also mentioning the potential integration of generative AI.
Since then, Amazon’s major competitors have heavily invested in generative AI, with offerings like Google Gemini, Microsoft Copilot, OpenAI’s ChatGPT, and Apple Intelligence. Some Amazon employees have described the Alexa initiative as a “desperate attempt” to stay competitive.
If Amazon proceeds with the launch, possibly branded as “Remarkable Alexa,” it would mark the first significant change to Alexa since its debut in 2014. Recently, Alexa’s development has slowed; in April, Amazon discontinued its Alexa Developer Rewards Program, which incentivized the creation of Skills for Alexa.
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