In a "better late than never" moment, Amazon has unveiled Alexa+: an advanced version of its voice assistant that integrates generative AI to enhance user interactions. Priced at $19.99 per month (but free for Amazon Prime members), the service is set to launch with early access in the U.S. next month, initially available on Echo Show devices, with plans for broader international and device expansion.
Amazon says Alexa+ leverages its own Nova AI models as well as those from partners like Anthropic, selecting the most appropriate model for each task. The assistant can perform actions such as ordering groceries, sending event invitations, and managing smart home devices with improved functionality. It also supports interactions across various platforms, including Echo devices with screens, voice-only devices, and a new Alexa app. Amazon says users will be able to upload documents (such as handwritten recipes or legal documents) for Alexa+ to reference and provide information upon request.
Amazon is hoping to boost user engagement and profitability by transitioning to a subscription-based model. The company says they have never made money with Alexa. Is Alexa+ the path to profitability? Asked differently: would a non-Amazon-Prime user shell out $20 a month for it?
As always your thoughts and comments are both welcome and encouraged. Just reply to this email. -s
P.S. Are more powerful AI assistants going to change consumer behavior? We'll explore this at the MMA CMO AI Transformation Summit (March 18, 2025 | NYC). I'm facilitating and co-producing this half-day invitation-only event which will provide insights into the strategies, technologies, and leadership practices for CMOs who are driving successful AI transformations across the world’s best marketing organizations. Request your invitation.
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.
