Amazon is reportedly planning an overhaul of its Alexa service, which has been losing money for over a decade.
The revamp will integrate conversational generative AI and offer two tiers of service. According to sources familiar with the company’s plans, Amazon is considering charging a monthly fee of $5 for access to the premium version.
Amazon’s internal project, named “Banyan” (inspired by the expansive ficus trees), aims to revolutionize its voice assistant technology. This revamp, dubbed “Remarkable Alexa” by the company, marks the first major update since Alexa’s introduction in 2014, alongside the Echo speaker lineup.
Eight current and former Alexa team members provided information on the condition that their names not be used, as they are bound by non-disclosure agreements.
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Amazon has set an August deadline for employees to launch the latest Alexa version, with CEO Andy Jassy taking a keen interest in the project’s success. In his April 11, 2024, letter to shareholders, Jassy teased a significant upgrade, pledging a more intelligent and capable Alexa, but remained tight-lipped about the details.
According to sources, Amazon’s plans for Alexa, including pricing and release dates, are subject to change or cancellation, contingent upon the progress and outcome of Project Banyan. The company’s plans are not yet set in stone and may be adjusted or scrapped if the project doesn’t meet expectations.
“We have already integrated generative AI into different components of Alexa, and are working hard on implementation at scale—in the over half a billion ambient, Alexa-enabled devices already in homes around the world—to enable even more proactive, personal, and trusted assistance for our customers,” A portion of Amazon’s statement read.
