Amazon Eyes $5 to $10 Monthly Fee for AI-Enhanced Alexa
This move is the first major update since Alexa's 2014 debut.
Amazon is considering imposing $5 to $10 monthly fees for integrating AI with two service tiers in its Alexa service, according to insiders who told Reuters. The project, code-named "Banyan," aims to revitalize the decade-old, unprofitable Alexa, introducing the "Remarkable Alexa."[1]
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This move is the first major update since Alexa's 2014 debut.
Amazon has already integrated generative AI into various Alexa components and aims to scale this across its over half a billion Alexa-enabled devices. The new service could include advanced features like composing emails and ordering food, but the idea of charging for previously free services has raised skepticism among some employees.
CNBC reported in May that Amazon.com is gearing up to introduce an upgraded version of its Alexa AI later this year.
While the exact pricing details are yet to be finalized, it's been disclosed that the subscription to Alexa won't be bundled into Amazon's popular $139 annual Prime membership, as per CNBC's report.
In 2023, Alexa switched lights on and off in over 24 million homes in Saudi Arabia and the UAE.
Alexa has provided seamless, hyper-localized experiences in Khaleeji Arabic to households across the Middle East for the past two years, responding to the region's distinct lifestyles, preferences, and needs.
The region's monthly active Alexa user base climbed by 40% in 2023.
