Amazon on Wednesday announced long-anticipated updates to its Alexa digital assistant. Amazon stock gained following the news.
A new service called "Alexa+" will be powered by generative AI, Amazon announced at an event in New York. It will cost $19.99 per month but be offered free for Prime members.
"Alexa+ helps you stay organized during busy days, provides detailed answers tailored to your needs, and handles everything from project planning to solving daily challenges — all through natural conversation," Amazon said in a blog post detailing the updates.
The rollout for Alexa+ will start with the U.S. in the "next few weeks," according to the company announcement.
On the stock market today, Amazon stock gained a half-percent to close at 214.25.
Amazon Alexa Update
The announcement follows more than two years of rumors about how Amazon would update Alexa for the age of generative AI. Amazon was an early mover in the market for voice-powered assistants when it launched Alexa in 2014. But beyond selling its Alexa-enabled Echo smart speakers, Amazon has struggled to monetize Alexa.
Gen AI-powered chatbots such as those from OpenAI and Meta Platforms have been utilized by hundreds of millions of users since OpenAI's ChatGPT helped ignite the market in November 2022.
Amazon has moved more slowly. Chief Executive Andy Jassy wrote in a letter to shareholders last April "an even more intelligent and capable Alexa" was in the works. In September 2023, Amazon published a blog post previewing a "smarter and more conversational Alexa" the company said would be powered by a custom-built large language model.
The new Alexa will draw on large language models available on Amazon Web Services' Bedrock offering.
With the updates, Alexa will be able to carry on "free-flowing" conversations and draw on real-time news updates through partnerships with the Associated Press, Reuters and others. Amazon also touted the ability to compose text and emails, plus integrations with other companies that allow users to call an Uber, book a reservation on OpenTable or set price alerts for tickets on Ticketmaster.
Amazon Stock Down 9% This Month
Meanwhile, Amazon's stock has struggled this month. Shares are down 9%, including Wednesday's gain, and broke below Amazon's 50-day moving average on Feb. 18.
Shares of the tech giant managed to gain a fraction in Tuesday trading, breaking a streak of six trading days with losses.
Amazon reported fourth quarter results on Feb. 6, showing lighter-than-expected sales and a profit outlook for the current quarter that missed expectations.
