Amazon unveiled a revamped version of its voice assistant Alexa this Wednesday, incorporating generative Artificial Intelligence (AI). The voice assistant industry has evolved from being a mere technological innovation to becoming a booming sector, transforming the way consumers interact with technology and brands. In recent years, the growth of these devices has been exponential, driven by advances in artificial intelligence, increased connectivity, and the need for more personalized and efficient experiences.
According to a report by consulting firm MarketsandMarkets, the global voice assistant market is expected to reach a value of $30 billion by 2026, with a compound annual growth rate of 22 percent. This rise is largely due to the integration of assistants like Alexa, Siri, and Google Assistant into a variety of devices, from smartphones to smart home appliances and car systems.
The adoption of voice assistants has grown significantly in emerging markets. According to a study by Voicebot.ai, usage of these devices in Latin America grew by 45 percent in 2024, reflecting increasing consumer trust in this technology. In Mexico, 62 percent of smartphone users reported using some form of voice assistant over the past year, according to data from Statista.
Introducing the New AI-Powered Alexa
One of the world’s most famous voice assistants, Amazon’s Alexa, has been revamped by integrating generative Artificial Intelligence.
“Alexa knows almost every instrument of your life — your schedule, your smart home, your preferences, the devices you’re using, the people you’re connected to, the entertainment you love — and it uses many of the apps and services you need,” said Panos Panay, Amazon’s head of devices and services, during a launch event in New York.
The new service is called Alexa+, Panay announced, echoing the premium-level naming convention of many tech and streaming service offerings.
It also marks the unveiling of a secret internal project known as “Banyan,” aimed at making Alexa more conversational.
Generative AI is a type of artificial intelligence that can learn from data and improve over time. This effort carries significant weight for Amazon, which has invested billions of dollars in Alexa since its launch in 2014, hoping to integrate the service into a variety of devices and ultimately drive sales on its main e-commerce website.
Alexa is a voice-controlled software installed in products like smart speakers that can answer users’ questions, play music, set timers, and serve as a hub for home automation by linking internet-connected devices — for example, turning on a light with just a voice command.
With this new AI-powered service, Alexa will be able to respond to multiple prompts in sequence and even act as an “agent,” taking actions for users without their direct involvement.
This is a stark contrast to the current version, which generally handles only one request at a time. Executives have reportedly discussed charging up to $10 per month for the new service, according to international media reports, in an effort to recover part of the investment in this loss-generating business.
Following the presentation, Amazon did not immediately address pricing details. Panay stated that Alexa+ is available starting Wednesday.
Amazon has revealed that there are already about 500 million Alexa-compatible devices in consumers’ hands, meaning this revamp represents both a massive revenue opportunity for the Seattle-based retailer and a significant financial risk if it fails to meet expectations.
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