According to sources familiar with Amazon’s plans, the Seattle-based tech and retail giant is set to modernize its decade-old Alexa voice assistant using generative artificial intelligence. These changes come as part of a strategy to stay competitive with new AI-powered chatbots, such as those from Google and OpenAI. The revamped Alexa, expected to debut later this year, will feature enhanced conversational abilities. Amazon is contemplating introducing a monthly subscription fee to cover the costs of this advanced technology, although the pricing has not been finalized yet.

Despite declining to comment on these developments, Amazon’s former SVP of devices and services, David Limp, hinted at the possibility of a subscription-based model for Alexa. The company’s move towards monetizing Alexa reflects a shift from its previous strategy, driven by founder Jeff Bezos’s enthusiasm for the project. Under Bezos, the Alexa division enjoyed ample funding and freedom from immediate profit pressures. However, since Andy Jassy assumed the role of CEO in 2021, there has been a change in priorities, with a greater focus on profitability and efficiency.

Jassy’s dissatisfaction with Alexa’s current capabilities underscores the need for innovation within the division. Amazon aims to transform Alexa into a more advanced and competitive product amidst the evolving landscape of AI chatbots. This transformation includes significant reorganization within the Alexa team, with resources being allocated to artificial general intelligence (AGI) initiatives. Despite these internal changes, Amazon remains confident in Alexa’s market position, boasting over 500 million Alexa-enabled devices sold as of 2023.