Amazon debuts updated Alexa chatbot with push to catch up with rivals

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Amazon announced its long-standing “conversation” version of Alexa on Wednesday.

Amazon said the so-called Alexa+ service will allow customers to interact with voice assistants through “natural conversations.” The upgrade said it means that the service will become more personalized as the device learns about user habits and daily schedules.

“The new Alexa knows almost every instrument in your life,” Amazon device chief Panos Panay said at an event in New York. He also said it will help organize the customer’s schedules and control various smart home devices.

The service will be available for $19.99 a month or free along with Amazon’s $14.99 Prime subscription, with Alexa+ A Alexa+ aimed at increasing demand for Prime accounts.

The new Alexa is helping Amazon to keep up with rivals, including Google, Meta and Microsoft, incorporate generated AI into its products and services to increase revenue.

The e-commerce giant will increase revenue by providing AI data center services and products to enterprise customers through cloud computing unit Amazon Web Services, and compete with things like Microsoft-Backed Openai. We made a strategic bet of $8 billion. More advanced AI models. But they are lagging behind consumer products.

The company has pledged $100 million in capital expenditure this year, focusing on AI infrastructure.

The Alexa+ was promoted a year and a half ago and was announced in 2022 after Openai launched its ChatGPT model.

However, development has been plagued by difficulties, and the company’s AI and Alexa teams have come across slow response times and “hastised” or manufactured answers.

The new services run in a variety of language models, including Anthropic’s Claude and Ecommerce Group’s in-house NOVA services, depending on the tasks set up by the customer. Amazon has also launched its Alexa website and a new mobile app.

Wednesday’s announcement comes more than a decade after the first iteration of Amazon’s digital assistants was released on Echo Devices. The company has since sold over 500 million Alexa-enabled devices, but it has not been disclosed whether the unit has made a profit despite being sunk into tens of millions of dollars of smart devices and speakers. .

Amazon executives have demonstrated that the upgraded Alexa will create restaurant reservations, book repair personnel and order Uber rides for airport pickups. It also showed that you would book concert tickets and set price alerts.

It also highlighted the new ability of assistants to complete customer-facing tasks by showing ALEXA processing information from uploaded documents and photos.

Panay said there are still some limitations to the current version of Alexa and users sometimes hear “I’m sorry, but I didn’t fully understand that.”

“Alexa has a 10-year legacy of trust and transparency with customers, and those years will continue with Alexa+,” he added.

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