Amazon CEO Andy Jassy hints at an ‘agentic’ Alexa

Amazon CEO Andy Jassy provided insight during the company’s Q3 2024 earnings call about a forthcoming, advanced version of the Alexa assistant, which he described as more “agentic.” This enhanced Alexa is expected to not only respond to inquiries but to also perform tasks on behalf of users, signaling a shift in the capabilities of digital assistants towards more proactive engagement. Jassy stated, “I think that the next generation of these assistants and generative AI applications will be better at not just answering questions and summarizing, indexing, and aggregating data, but also taking actions.”

To support this evolution, Amazon is revamping its underlying technology for Alexa, incorporating new foundational models that are in development. The company previously announced plans to enhance Alexa’s generative AI capabilities in 2023. However, challenges arose during the redesign phase, resulting in Amazon opting to replace its homegrown Alexa models with technology from Anthropic, a firm in which it has made significant investments.

There were reports indicating that during the redesign, the updated version of Alexa struggled with basic functions, such as turning on smart lights, and exhibited a considerable delay in responding to user queries. Internally referred to as “Remarkable Alexa,” this new iteration is expected to be offered at a subscription fee ranging from $5 to $10 per month, with a less advanced free version also available. Although initial expectations suggested a rollout in October 2024, reports now indicate that launch timelines have shifted to 2025.

Despite its presence on over half a billion devices globally, Alexa has not significantly impacted Amazon’s financial standing. The company has faced substantial losses in its devices sector, amounting to tens of billions of dollars since 2017, as noted by The Wall Street Journal. This situation underscores ongoing challenges in monetizing Alexa and raises questions regarding the strategic direction of Amazon’s voice assistant technology in a rapidly evolving competitive landscape.

In summary, while Amazon is committed to enhancing the functional capabilities of Alexa through generative AI advancements, the journey has encountered technological hurdles, delays in deployment, and financial challenges that the company must navigate going forward.