The upcoming version of Amazon’s Alexa voice assistant, known as Remarkable Alexa and Project Banyan internally, is set to use Anthropic’s Claude AI models instead of Amazon’s own technology. This new iteration is expected to launch in October, with a preview scheduled for Amazon’s annual event in September. The decision to use Claude came after Amazon’s own AI models showed slower response times, sometimes taking six to seven seconds to acknowledge and respond to requests.
Enhanced Features and Subscription Model
Unlike the current free version, Remarkable Alexa will be offered as a subscription service, priced between $5 and $10 per month. This paid version will boast advanced capabilities, including:
- Contextual conversations based on previous interactions
- Shopping recommendations and news gathering
- Complex task handling, such as food ordering and email composition
- Improved home automation, learning user preferences for tasks like setting alarms or recording TV shows
We’ll keep you updated on any new developments regarding these features as they become available.
Market Potential and Challenges
While Amazon employees have expressed concerns about users’ willingness to pay for a previously free service, the company sees this as a crucial strategy to demonstrate Alexa’s revenue potential, notes NIX Solutions. Bank of America analyst Justin Post estimates Alexa’s current user base at around 100 million people. If 10% of these users opt for the paid version, it could generate at least $600 million in additional annual revenue for Amazon.
The current Alexa can perform basic tasks such as setting timers, playing music, controlling smart home devices, and answering questions. However, Amazon’s efforts to boost revenue through voice-activated purchases have not been successful, leaving the Alexa division unprofitable. The company hopes that Remarkable Alexa will change this trajectory and establish a new standard for AI-powered voice assistants in the market.