Amazon Plans Subscription-Based AI Upgrade for Alexa, Priced Up to $10 Monthly

Amazon is gearing up to introduce a subscription-based model for an enhanced, AI-powered version of its virtual assistant, Alexa. The new service is expected to offer more advanced capabilities and personalization options, with a monthly fee ranging from $5 to $10.

According to a report by Greg Bensinger for Reuters, Amazon's goal is to replace the current free version of Alexa, known internally as "Classic Alexa," with a more sophisticated AI-powered version. This upgraded version will also offer an additional tier with even more powerful AI software for complex queries and tasks, which users would need to subscribe to access.

The paid version of Alexa is envisioned to handle intricate tasks such as composing emails, placing food delivery orders through services like Uber Eats, and executing multiple commands with a single prompt. It is also expected to offer a more seamless user experience by reducing the need to repeatedly activate the assistant with the "Alexa" wake word and providing enhanced personalization features.

The report indicates that Amazon is targeting an August deadline for the launch of the AI-powered Alexa. Despite speculation, there are currently no plans to bundle the subscription with Amazon's Prime membership.

Amazon's move to introduce a subscription-based model for Alexa reflects the company's efforts to monetize its popular virtual assistant and turn it into a profitable venture. While Amazon's Echo devices have been successful in the market, they have been a financial drain on the company. With the upcoming AI upgrade, Amazon aims to transform Alexa into a revenue-generating service and capitalize on its widespread adoption.