People are using their Alexa speakers as glorified timers, and it’s cost Amazon $25 billion – but is AI the answer?

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People are using their Alexa speakers as glorified timers, and it’s cost

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$25 billion – but is AI the answer?

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has sold millions of Echo smart speakers, but its smart home devices are still making a massive loss according to internal documents and those with inside knowledge of the business. Now,

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CEO Andy Jassy is trying to turn things around – but it’s not going to be easy.

It’s widely rumored that

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will soon be introducing a paid tier for Alexa, with an AI-enhanced version of the smart assistant available as a monthly add-on to

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Prime subscriptions. However, according to

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(paywall), the company made over $25 billion in losses from its smart device business between 2017 and 2021.

While a paid-for service could go some way towards filling that *****, it will be a tough challenge – particularly since many people only use Alexa’s most basic functions, and may therefore be unwilling to pay extra for AI-enhanced services.

“We worried we’ve hired 10,000 people and we’ve built a smart timer,” one former senior employee told the Wall Street Journal.

AI-enhanced Alexa

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(Image credit: Shutterstock)

The AI-enhanced service, said to be known internally as ‘Remarkable Alexa’, could cost $5 or $10 a month, which would provide an extra source of revenue for

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’s device business alongside Kindle subscriptions and Ring home security plans.

However, ‘Remarkable Alexa’ will face stiff competition.

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is preparing to launch a new service that merges

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Assistant with Bard, with a price yet to be announced, and at last month’s WWDC 2024 conference, Apple unveiled a major upgrade for Siri powered by Apple Intelligence, which is free for users.

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has yet to confirm any details about a premium tier for Alexa, but it’s suggested that the supercharged service could arrive later this year. We’ll keep you updated as soon as we know more.

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#People #Alexa #speakers #glorified #timers #cost #

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#billion #answer

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