Amazon is preparing to launch an even more powerful version of its voice assistant, Alexa, slated for release in October, just in time for the holiday season.
This upcoming version, internally referred to as "Remarkable," will largely be powered by Anthropic's Claude AI models instead of Amazon's in-house AI technology used to date.
Claude is a powerful family of models on par with OpenAI's GPT-4. The move makes sense as Amazon is a major investor in Anthropic, with its models available on the AWS cloud.
If you want to make the most of the current generation Alexa, Amazon currently has the 2024 Echo Spot on sale with 31% off, down to $54 from $79 for a limited time.
Why Claude AI?
The decision to integrate with Claude AI comes after an initial effort by Amazon to recreate Alexa in-house with more advanced models proved highly problematic, according to people with knowledge of the development.
Those in-house models were unresponsive, taking upwards of six to seven seconds to respond after processing a user's command. That delay would be unacceptable for a next-generation voice assistant that needs to stand up to state-of-the-art AI systems such as OpenAI’s ChatGPT Voice and Google’s Gemini.
"Amazon uses many different technologies to power Alexa. When it comes to machine learning models, we start with those built by Amazon, but we have used, and will continue to use, a variety of different models—including Titan and future Amazon models, as well as those from partners—to build the best experience for customers. That’s one of the key advantages of Amazon Bedrock—it makes it easy for application developers to seamlessly use the world’s highest-performing models, and multiple models, through a single API," said a spokesperson for Alexa.
Claude, an AI chatbot developed by Anthropic, outperformed Amazon’s models, prompting the company to change course towards using this external technology. That is especially interesting, considering the way Amazon typically prefers to develop technology internally in an effort to keep complete control over the user experience and management of data.
Still, in the incredibly competitive and fast-evolving landscape for AI, Amazon chose an atypical route of embracing external partnerships.
What's new with "Remarkable" Alexa?
The upcoming "Remarkable" Alexa will be far more than just a voice assistant. It aims to offer a richer, more interactive experience by allowing users to give longer, more complex commands. This is similar to the way you might engage with Gemini Live or ChatGPT Voice.
For instance, one might ask Alexa to compose an email, order dinner, and set a reminder – all within a single command. Compared to what Alexa does today, this is a quantum leap from mere setting of timers, playing music, and answering simple questions.
Amazon is also envisioning the new Alexa as a central smart home automation hub that learns and adapts over time, so Alexa would automatically set your morning alarms, turn the thermostat up or down, or even record your favorite TV show without a prompt.
Editors’ Note: We updated this article at TK ET to include a statement from Amazon.
Cost factor
While these new features sound promising, they’ll come with a price. Amazon reportedly plans to charge $5 and $10 per month for access to the "Remarkable" Alexa. Development has had many raising their eyebrows in skepticism.
The service currently is completely free, so convincing users to pay money for an upgrade is likely to be quite difficult. Many already pay $139 annually for Amazon Prime.
But despite these concerns, Amazon is optimistic that the additional capability given by "Remarkable" Alexa will justify the subscription fee, especially as the company looks to finally make Alexa a profitable part of its business.
If even 10% of the 100 million active Alexa users move to the paid offering, that would add at least $600 million a year. There is also evidence people will pay for AI as OpenAI, Anthropic and Google all offer a monthly subscription, and Apple is rumored to be working on a paid version of Apple Intelligence.
Outlook
Launching "Remarkable" Alexa marks a critical moment at a time when Amazon is struggling to maintain leadership in the voice assistant market.
The competition is getting stronger; the expectations of consumers are growing. So, the success or failure of the new AI-powered Alexa means the future direction of Amazon's smart home ecosystem.
The entire world will be watching Amazon to see if this pays off or is just another misstep that will force the company to readjust its strategy once more.
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