Remember when Alexa came along and we all thought we were living in the future? Amazon decided it was time for an update. She named it “Project Banyan” and is about to give Alexa a serious boost in artificial intelligence.
The retail giant is considering a significant update that would incorporate advanced artificial intelligence capabilities, potentially transforming Alexa from a simple voice assistant into a sophisticated AI-enabled companion. However, this technological leap could come at a price for consumers, because Amazon plans to introduce a tiered pricing structure for the revamped service.
The project aims to introduce more conversational and capable AI, tentatively dubbed “Remarkable Alexa,” that could potentially rival ChatGPT and other advanced language models. According to sources familiar with the matter, Amazon is considering a two-tier system for the new Alexa service. While a basic AI-enhanced version would remain free, a higher tier offering more advanced features and capabilities could cost users between $5 and $10 per month.
Amazon needs Alexa to be profitable
This pricing strategy reflects Amazon’s need to monetize Alexa, which has apparently been unprofitable since its launch despite widespread adoption. The premium tier offered for Alexa should offer a series of improved features. Users might be able to engage in more natural, smoother conversations without having to repeatedly use the catchword “Alexa.” AI could eventually take on complex, multi-step taskssuch as writing and sending emails or ordering food delivery, all from a single voice command.
Additionally, the system could learn from user behavior to automate routines, such as turning on a coffee maker when an alarm goes off. Amazon’s push to revitalize Alexa comes at a crucial moment in the race for artificial intelligence. Faced with competitors like Google, Microsoft and Apple who are making considerable progress in the field of conversational AI, Amazon must keep pace or risk being left behind. Fortunately for the company, we know that Apple’s new Siri might not launch in Europe until at least next year.
Amazon reportedly encountered difficulties with the new Alexa
According to information from Reuters, the development of the new version of Alexa did not go smoothly. The team encountered some problems, such as the fact that the AI sometimes showed hallucinations by inventing things during its responses.
The potential introduction of a paid tier for Alexa raises questions about the future of voice assistants and AI in homes. Will consumers see enough value in advanced AI capabilities to justify a monthly subscription? How will this decision affect the broader smart home ecosystem that has grown up around Alexa?
If you already use Alexa to ask it for simple information or command it to do repetitive tasks, you might not notice much. But if you want a smarter assistant and don’t mind paying for it, you might be in luck. It’s a gamble for Amazon, no doubt. Alexa is an important element of their brand, just like Prime and Kindle, which is why everyone is now waiting for the first tests of this new artificial intelligence.
Of course, there are also concerns. Privacy is always a major issue when it comes to AI, especially when it comes to AI that is constantly listening to us. Amazon will need to be very clear about how it processes our data if it wants people to trust a smarter Alexa and more involved in our lives.