Amazon is preparing to launch an upgraded version of Alexa, expected to be available in October, ahead of the busy holiday shopping season in the US.
According to AI News, Amazon is preparing to launch a new version of its Alexa virtual assistant, called “Remarkable,” equipped with Anthropic’s advanced artificial intelligence (AI) technology. This is a replacement for Amazon’s previous self-developed software, which did not meet performance requirements.
The new version of Alexa, which uses advanced GenAI technology, is capable of handling much more complex queries than before. Amazon plans to offer a paid subscription service for Alexa for $5 to $10 a month, while the old version will continue to be free. The change shows that Amazon is still trying to turn Alexa into a source of revenue after years of operating without much profit.
In the past, Amazon has preferred to develop its technology in-house to reduce its reliance on third-party vendors, protect control of data, and avoid outside influence. However, the decision to partner with Anthropic this time around appears to reflect Amazon’s need for more advanced AI technology.
The launch of “Remarkable” Alexa is expected to be announced at Amazon’s annual devices and services event in September, though the exact date has not yet been confirmed. It will also be the first appearance of Panos Panay, the new head of Amazon’s devices division, who will succeed David Limp.
Amazon has been in serious financial trouble with its Alexa device division, with reports showing the company has lost billions of dollars over the past five years.
The new version of Alexa is expected to deliver better interactive experiences thanks to its ability to converse flexibly, recognize speech patterns, and maintain conversations based on the user's interaction history. Notable features include personalized shopping advice, news aggregation, and advanced home automation.
While the success of the new version of Alexa depends on hitting internal performance metrics, Amazon hopes that even a small portion of users paying for the premium version could generate significant revenue. However, achieving that goal remains uncertain.
The Amazon-Anthropic partnership is currently under scrutiny from antitrust regulators in the UK. The outcome of the investigation and the regulator’s response could have a major impact on Amazon’s future operations.
