Amazon is pushing for profitability in its embattled Alexa division with a new plan to offer customers an AI-powered version of its voice assistant for $5 to $10 per month. Dubbed “Remarkable Alexa,” the upgraded offering will provide a more personalized experience for customers and can perform more complex tasks than free Alexa versions, including writing emails, ordering food, or even making coffee after a morning alarm (at least when connected to a smart device), Reuters first reported.
There’s a lot riding on the success of Remarkable Alexa. The Alexa division has been struggling with profitability for years, reportedly losing $5 billion in 2022 alone. Two rounds of layoffs in late 2022 and 2023 have helped stem the bleeding, but the latest AI push will need to translate to revenues quickly. Emphasizing this do-or-die sentiment, unnamed Amazon employees told Reuters that senior management called 2024 a “must win” year for Alexa.
