Amazon's Fall Plans for New Alexa Devices

Amazon.com, Inc. is set to launch new companion devices this fall that will enhance the capabilities of its artificial intelligence voice assistant, Alexa. This announcement was made by Chief Executive Officer Andy Jassy during an interview with Bloomberg Television.

The upcoming devices, along with current hardware receiving the new Alexa+ software update, will go beyond simply answering trivia questions. They are designed to help users accomplish various tasks more effectively, such as hiring someone to repair an appliance like an oven, Jassy explained on Thursday. He was in New York attending a press event focused on unveiling the updated Alexa features.

In recent years, Alexa has faced stiff competition from a surge of AI chatbots, notably ChatGPT developed by OpenAI. This update aims to renew consumer interest and generate revenue through subscriptions, online shopping, and other services offered by Amazon.

Jassy expressed optimism about the business model for the revamped Alexa platform, stating, "I think there’s a sustainable business model" moving forward.

Amazon's overhaul of Alexa, which is its primary consumer electronics brand, has taken longer than originally anticipated. Engineers have been working hard to integrate advanced artificial intelligence into software that was not initially crafted to provide real-time responses.

For the first time, Amazon will begin charging users for accessing Alexa's new features as the Alexa+ update rolls out next month. Customers wishing to access these advanced capabilities will be required to pay a subscription fee of $19.99 per month. However, members of Amazon’s annual Prime program, which costs $139, will receive the update at no additional charge.

In a broader discussion, Jassy commented on a proposed rule from the Biden administration that might restrict the export of artificial intelligence chips to countries like Israel and the United Arab Emirates. He warned that without amendments to this rule, the U.S. might lose business to other nations capable of providing these vital chips. His statements were consistent with a blog post from Microsoft Corp. discussing the same policy.

Furthermore, Jassy mentioned that power limitations and chip shortages are ongoing issues hampering the growth of Amazon's cloud-computing business. He conveyed that the administration is acknowledging the economy’s challenges tied to these constraints, suggesting a willingness to address the situation.

While Jassy noted that he had conversations with former President Trump regarding such topics, he did not disclose specific details of their discussions.

In essence, Amazon is taking substantial steps to enhance its Alexa platform with a major software update, looking to maintain its relevance in a rapidly evolving technological landscape.

Amazon, Alexa, AI