Wednesday, Amazon.com Inc amzn We have announced the improved Alexa with artificial intelligence capabilities. Ultimately, will Amazon help turn around a historically unprofitable device segment?
What happened: The Seattle-based company is rolling out an Alexa+ subscription that will be free for Amazon Prime subscribers in the coming weeks. Subscription is $19.99 per month for non-prime members.
According to CNBC, the service will be available on physical Alexa devices starting with Echo Show 8, 10, 15 and 21. Alexa+ ultimately reaches almost every device ALEXA supports.
According to Amazon, Alexa+ has better conversational skills, personalized responses based on past discussions, and better abilities as a personal assistant. The company has listed some examples of implementations of the new features announced.
Personalized advice on music based on user preferences and integration of favorite genres with other Amazon devices, such as ring analysis of user uploaded documents
The company faces backlash through its collection of user data on its website and smart devices.
Why it matters: Amazon has been facing losses in its device segment for several years. In 2024, the Wall Street Journal reported that the company lost more than $25 billion on Amazon Echo between 2017 and 2021. Amazon has previously marked its devices during holiday sales.
Adding conversational features to Alexa will help the company compete with rivals Alphabet, Openai and Meta.
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