Amazon is reportedly planning to improve its popular voice assistant Alexa with generative AI and to charge a monthly subscription fee to shoulder the cost of the advancement.

The e-commerce giant is set to launch a conversational model of Alexa to catch up and directly compete with other AI chatbots from Google and OpenAI.

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Amazon's Alexa is Bound for Major Upgrades

It has been almost 10 years since Amazon first introduced Alexa to the public. Since then, various companies have launched their own version of AI assistants with better features.

According to people familiar with Amazon's plans, the retail giant is planning to strategically reposition Alexa as a strong competitor to Google, OpenAI, and other tech companies. Alexa's voice-activated system opened a new era for home devices in 2014 but consumers are starting to outgrow it.

Regardless, there is still a demand for Alexa due to its familiar design. Many people still use the voice assistant for completing basic tasks like checking the weather, setting timers, and jotting reminders.

Amazon Could Introduce Subscription Tier for Upgraded Alexa

Sources revealed that Amazon is eyeing a separate subscription for the upgraded Alexa. This means that users will be asked to pay another plan aside from the $139 per year on Prime.

The company has been hinting at the possible changes for Alexa. Amazon's former SVP of devices and services David Limp previously stated that the company is looking for ways to develop a more powerful version of Alexa.

As of writing, Amazon has yet to confirm the news. Internally, sources shared that the company is yet to finalize the price point for the new subscription plan. One source estimated that generative AI-powered Alexa could charge $20, a similar amount to ChatGPT's advanced models.

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