Amazon Gearing Up For Alexa Version 2.0, Likely To Charge $5 Per Month For AI Features

Alexa remains to be a well-liked device for basic tasks such as setting timers, checking the weather, playing music, and offering simple answers.

Amazon is planning to bring out the latest version of Alexa in the market by August. ( Image Source :Unsplash/@Lazar Gugleta )

Amazon is gearing up for a revamp of its decade-old Alexa services with the aim to incorporate a conversational generative AI with two service tiers. According to Reuters, the overhauled version will be called 'Banyan' and it might feature a superior version available for a monthly fee of around $5. It has been named 'Banyan' after the expansive ficus trees, which symbolises the first significant update to the virtual assistant since its release back in 2014 alongside the Echo speaker line.

This new iteration, dubbed 'Remarkable Alexa', is expected to enhance the assistant's capabilities manyfold. Reuters derived all this information after talking to eight current and former employees involved with Alexa, who shared these details.

Reuters added that the tech giant is planning to bring out the latest version of Alexa in the market by August. The CEO of Amazon, Andy Jassy in a recent shareholder letter, subtly hinted at a 'more intelligent and capable Alexa'. He however did not disclose further specifics. There might be a reason for him to not divulge any other details as insiders have warned that the plans, including pricing and release schedules, can possibly change on the basis of the progress of Project Banyan.

An Amazon spokeswoman told the wire agency, "We have already integrated generative AI into different components of Alexa and are working hard on implementation at scale—in the over half a billion ambient, Alexa-enabled devices already in homes around the world—to enable even more proactive, personal, and trusted assistance for our customers."

Alexa Then & Alexa Now

At first, a personal project of Amazon's founder Jeff Bezos, Alexa was designed to imitate the fictional voice-operated computer seen in Star Trek. Despite its ability to provide verbal responses to user inquiries and manage household devices, the service has not yet been profitable. Some staff members view Project Banyan as a crucial effort to rejuvenate Alexa in the face of growing competition from Google, Microsoft, and OpenAI's chatbots, which have garnered considerable attention for their advanced conversational skills.

Amazon's reorganisation initiatives, which included significant workforce reductions in late 2023, demonstrate the difficulties Alexa is encountering. Mostly accessed through Amazon TVs and Echo speakers, Alexa remains to be a well-liked device for basic tasks such as setting timers, checking the weather, playing music, and offering simple answers.