Amazon plans to upgrade Alexa by adding generative artificial intelligence (AI) to its decade-old voice assistant and may charge a monthly subscription fee per report.

CNBC reported that two individuals who requested anonymity said the Seattle-based tech giant will debut a more conversational Alexa later this year to compete with Google and OpenAI's AI-powered chatbots. A source claimed the Alexa subscription will be separate from Prime's $139-per-year service and have undetermined pricing.

Jeff Bezos Involved in Alexa's Upgrade

Alexa, released in 2014, dazzled users with its voice-driven chores, but current AI breakthroughs make it feel outdated. OpenAI launched GPT-4o recently, capable of deep two-way discussions and real-time language translation. Gemini acquired a comparable generative AI speech function from Google.

These discoveries may threaten Alexa and Siri, say experts. On his podcast, NYU professor Scott Galloway termed the improvements "Alexa and Siri killers." People often use Alexa and Siri for timers and weather updates.

Sources say Jeff Bezos worries about Amazon's AI position. He is "very involved" in Amazon's AI initiatives and has questioned why some AI firms are selecting other cloud providers over AWS, CNBC reported last week. Moreover, Amazon reportedly will enhance Alexa with Titan, the company's large language model.

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Amazon May Charge Subscription Fee

Amid recent developments in the field of artificial intelligence, Amazon has faced criticism for its AI delays. It has various AI models on Amazon Web Services, but no huge language models like OpenAI, Google, or Meta. Amazon's highest venture investment was $2.75 billion in AI firm Anthropic. Google also backs Anthropic.

Amazon may charge a subscription for its AI-enhanced Alexa speech assistant. Former Amazon senior vice president of devices and services David Limp said last year that the firm "will end up charging something" for Alexa's sophisticated version. At the time, Limp promised to keep Alexa free, according to The Verge.

Generative AI tasks demand expensive hardware and computational resources. Using generative AI in Alexa might cost 2 cents per question, with a $20 price threshold explored internally. A reduced single-digit monthly cost was recommended to be competitive. OpenAI's advanced ChatGPT models cost $20 per month

Despite limitations, Alexa's vast user base offers an opportunity. With devices in millions of homes, Alexa misinterpreting a command or providing inaccurate information may be costly. 

Based on earlier reports and pronouncements, Amazon declined to comment on its current intentions. Early previews of the updated Alexa are underway. You can enable it by telling your Echo, "Alexa, let's chat." Amazon will notify users of preview availability.

OpenAI launched GPT-4o last week, allowing ChatGPT users to get real-time replies without latency.  Google also updated its Gemini chatbot and search engine, according to a report from XM.

Moreover, Media sources say Apple is also contemplating an AI update for Siri, which is trailing in the AI competition. 

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