Report: Alexa with AI and Additional Subscription by 2024

### Alexa’s New AI Subscription Service Coming in 2024

Amazon’s digital assistant, Alexa, is set to receive a significant upgrade this year, integrating generative AI technology. This new enhancement aims to position Alexa as a robust competitor against leading AI platforms like ChatGPT. However, this upgrade will not come without cost to consumers. According to sources cited by CNBC, Amazon is planning to introduce a monthly subscription fee for this new AI-powered service, separate from existing Amazon Prime memberships.

#### AI Subscription Launching in 2024

The plan, as reported by CNBC, remains under development, particularly in terms of pricing. Speculations suggest that each interaction with the AI may cost around two cents, translating to a monthly fee ranging from $2 to $20. By venturing into the AI subscription market, Amazon directly challenges services like ChatGPT, which currently offers a basic version for free and a premium „Plus“ version at $20 per month.

#### Pressure Mounting on Alexa Division

The reports also hint at increasing pressure on Amazon’s Alexa division. Historically, this sector has been operating at a loss. Under the leadership of Andy Jassy, who succeeded Jeff Bezos, the division underwent significant downsizing. The introduction of a paid AI subscription could be a strategic move to meet the profitability goals set for Alexa and Echo devices.

#### Alexa’s Financial Struggles

Since its launch in 2014, Alexa has often been limited to simple tasks like setting timers and checking the weather—functions that do not contribute to Amazon’s revenue. Efforts to monetize through in-skill purchases and voice-activated shopping have not significantly resonated with users. This year alone, Alexa is projected to incur a $10 billion loss for Amazon.

#### Evaluating Alexa’s Future

In an effort to enhance Alexa’s capabilities, Amazon plans to integrate its proprietary language model, Titan, into the assistant. The rollout of the subscription service is expected to commence later this year.

#### Product Highlight

For those interested in exploring Alexa’s ecosystem, the **Echo Dot with Clock (5th Gen., 2022)** remains a popular choice. This smart speaker combines Wi-Fi and Bluetooth connectivity with a built-in clock and Alexa integration.


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With these upcoming changes, Amazon aims to redefine the value proposition of Alexa, transforming it from a basic virtual assistant into a sophisticated, revenue-generating AI service. The next few months will be crucial in determining whether this strategic pivot can help Amazon turn Alexa into a profitable endeavor.

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