Amazon (AMZN.O) is planning a significant overhaul of its decade-old, unprofitable Alexa service to incorporate a conversational generative AI, offering two service tiers and considering a monthly fee of around $5 for access to the premium version, according to sources familiar with the company’s plans.
Internally referred to as “Banyan,” a nod to the extensive ficus trees, this initiative marks the first major update of the voice assistant since its 2014 launch with the Echo speaker line. The new voice assistant, named “Remarkable Alexa” by Amazon, is expected to debut soon, the sources revealed.
These insights come from eight current and former employees involved with Alexa, who requested anonymity due to the confidential nature of the project.
Amazon has set an August deadline for the updated Alexa, driven by CEO Andy Jassy’s vested interest in revitalizing the service. In an April letter to shareholders, Jassy hinted at a “more intelligent and capable Alexa” without divulging further specifics.
The specifics of Alexa’s pricing and release could still change or be canceled based on Project Banyan’s progress, the sources cautioned.
An Amazon spokeswoman stated, “We have already integrated generative AI into different components of Alexa and are working hard on scaling this implementation across over half a billion Alexa-enabled devices worldwide to provide more proactive, personal, and trusted assistance for our customers.”
Alexa, which answers user queries and controls home appliances, was initially a passion project of Amazon founder Jeff Bezos, who envisioned it emulating the fictional voice computer from Star Trek.
For Amazon, staying competitive in generative AI is crucial as Google (GOOGL.O), Microsoft (MSFT.O), and OpenAI receive increasing acclaim for their chatbots, capable of delivering rapid, coherent responses to complex prompts or questions.
