Amazon Considers $5-$10 Monthly Fee for AI-Powered Alexa, Launch as Soon as August

Jun 21, 2024, 12:38 PM

Amazon is considering a significant overhaul of its Alexa service, introducing a new generative AI-powered version. The revamped Alexa, codenamed 'Banyan,' will feature a conversational AI with two tiers of service: a free basic version and a premium version costing between $5 and $10 per month. This move aims to address the unprofitability of the current Alexa service and enhance its capabilities, including composing emails. With Amazon having sold more than 500 million Alexa-enabled devices, the new GenAI revenue could be significant for the company. The new service is expected to be launched as soon as August.