Amazon has unveiled a major upgrade to its Alexa digital assistant, now called “Alexa+,” powered by generative AI and available through a monthly subscription. The service, announced at an event in New York, will cost $19.99 per month, or be free for Amazon Prime members, and launches next month. Alexa+ promises enhanced capabilities, including booking reservations, personalized recipe suggestions, and interactive study guides. Amazon has redesigned Alexa from the ground up, using a variety of advanced AI models, including its own and those from partners like Anthropic. This move comes as Amazon aims to make Alexa profitable and compete with AI chatbots like ChatGPT. The subscription fee is intended to offset the high development costs of AI, but Amazon must demonstrate significant value to justify the charge, especially to Prime members. Alexa, launched in 2014, has struggled to meet its initial vision of a transformative AI assistant, and Amazon has faced pressure to innovate following the rise of generative AI. The company has also been working to cut costs in its devices division, which includes Alexa.
