Amazon’s new AI-powered Alexa will cost up to $10/month

AI is getting infused into everything these days, and Amazon’s Alexa is the latest service to receive an AI upgrade. According to a new report, Amazon plans for its AI-powered Alexa to come with a monthly price tag for the first time: a $5-10 monthly subscription.

Monthly charge for Alexa’s new AI makeover

Greg Bensinger, writing for Reuters:

Amazon is working to replace what it refers to internally as “Classic Alexa,” the current free version, with an AI-powered one and yet another tier that uses more powerful AI software for more complicated queries and prompts that people would have to pay at least $5 per month to access, some of the people said. Amazon has also considered a roughly $10-per-month price, they said.

There is no tie-in with Amazon’s $139-per-year Prime membership being considered, the people said.

As envisioned, the paid version could perform more intricate tasks such as composing a brief email, sending it and ordering dinner for delivery from Uber Eats, all from a single prompt, some of the people said. It could also eliminate the need to repeatedly say “Alexa” during a conversation with the software and offer more personalization, they said.

Per the report, Amazon has set an August deadline for the AI-powered Alexa to be ready. For years, Amazon’s Echo devices have been a major revenue drain for the company, so with the newest era of Alexa’s intelligence, the company is hoping to change that and make the assistant a source of profit.

9to5Mac’s Take

It’s clear that Alexa needs an AI upgrade to keep up with the likes of ChatGPT and iOS 18’s new Siri. What’s not so clear is whether there’s a market to pay monthly dues for a new and improved Alexa.

A large part of Amazon’s success with Alexa has been through selling Echo products at a compellingly low price. Adding a monthly subscription requirement seems like a major shift, but I’m interested to see if customers who prioritize a low hardware cost will be willing to pay a low monthly fee for additional capabilities.