Amazon's AI-powered Alexa Might Cost Between $5 To $10 Per Month: Reuters

(RTTNews) - A recent report from Reuters indicates that Amazon.com, Inc. (AMZN) is developing a new AI-enhanced version of Alexa that may come with a monthly fee ranging from $5 to $10 in addition to your Prime membership.

This upgraded iteration of Alexa, internally referred to as "Classic Alexa," is being replaced by a more advanced AI-powered model called "Remarkable Alexa." According to Reuters, this new voice assistant will offer two subscription tiers, both leveraging AI technology, with one tier being free of charge. Remarkable Alexa is expected to handle complex tasks, like composing emails and placing dinner orders, all with a single command.

The internal initiative within Amazon to revamp their voice assistant is codenamed Project Banyan, as per Reuters. Amazon is reportedly making a significant push to introduce the enhanced Alexa by August, described as a "desperate attempt" to evolve the voice assistant.

The new AI capabilities include learning from user behavior to create routines, such as starting a coffee maker when the alarm goes off and offering shopping recommendations, like gear advice for a mountain climbing expedition. It's anticipated to support executing multiple requests in a single prompt, like sending emails and ordering food delivery. There are also hints at a feature in the paid version of Alexa where users won't need to repeatedly say "Alexa" during interactions, allowing for multiple requests in a single prompt.

Reuters' sources suggest that there are no immediate plans to bundle this new Alexa service with Amazon's existing $139 per year Prime membership, which offers various benefits such as free shipping, access to Prime Video and Amazon Music, and exclusive discounts.