Will productive AI fix Amazon Alexa?

Key Takeaways

• Alexa may be getting a paid “Amazing” category that uses AI for productivity.
• People don’t like paying for something that already has a free version, so Amazon may need to spice up its offerings.
• Notably alone it won’t install a black Alexa.

Personally, I’m a fan of Alexa. Sure, there are privacy concerns and annoyances — removed accessories sometimes reappear, for example — but it’s probably the easiest way for a smart home environment, and it generally makes my life easier. I use it to control my lights, and even my workday music comes from the Echo Studio. If I want to check the weather or get a news update, I’ll talk to one of the three Echo speakers in my home.

If you haven’t been keeping up with current events, however, Alexa is in trouble. The Wall Street Journal says that Amazon’s Alexa / Devices division lost $25 billion — yes, a billion — between 2017 and 2021, and the company is still struggling to figure out how to make Alexa and Echo made a profit. One solution is the rumored “Awesome” Alexa, a productivity AI upgrade that costs $5 to $10 a month.

Will Remarkable change Amazon’s fortunes? I sincerely doubt it — at least not by itself.

A natural and advanced assistant

The best way to describe it is compared to the existing incarnation of Alexa. “Classic” Alexa supports only one command per voice prompt, and is mostly limited to media/smart home control, general information queries, and things like shopping, calendars, and reminders. It is possible to expand this functionality by adding “skills,” but generally you work within the same parameters.

How Alexa Remarkable will succeed depends on how Amazon’s development comes out, but the idea is that it can use artificial intelligence to support multiple commands at the same time, eliminating the need to use the word “Alexa” more often. Exchanges can also feel personalized and conversational, which would fulfill Jeff Bezos’ dream of a Star Trek-like voice assistant.

No one wants their energy bill to go up because of Daily Show reruns.

More importantly, we can find completely new jobs. An example from Reuters’ sources involves someone writing an email and ordering from Uber Eats — all with the same command. It suggests communication with many external forums, either through skills or otherwise.

Notably, it may add proactive smart home automation, which goes beyond manually created processes. It can turn on your TV in time for a favorite show, for example, or turn on your patio lights at night. I just hope there’s some level of regulation put in place — nobody wants their energy bill to go up because of Daily Show reruns. Some smart home users are already having problems with their “learning” thermostats making bad assumptions.

The challenge

Moving the stubborn needle

I’m not sure many people will be willing to pay for the Alexa Remarkable, especially judging from what we know about it so far. Classic Alexa may not be the same as Google Gemini or ChatGPT, but it does the things people expect — and it’s free. If there’s one thing the history of the Internet has taught us, it’s that people are reluctant to pay for something when there’s a free version available. Just ask the creators of mIRC or Winamp.

If there’s one thing the history of the Internet has taught us, it’s that people are reluctant to pay for something when there’s a free version available.

If Remarkable is going to attract an audience, it will have to match the paid versions of its competitors, at least. Most of us carry a smartphone with us, and it doesn’t make much sense to pay for two AI subscriptions just because you want to talk to the speaker or display instead. Indeed, people will want something more comprehensive from Amazon, because the idea of ​​AI only available in speakers or screens is a tough sell.

What would move the needle? First, we can use more reliable AI. Alexa and other voice assistants still have a hard time interpreting most commands, so even getting things right 98% of the time can be a selling point. Production technology that is compatible with our speech would be especially welcome. Similarly, we need productive AI that “doesn’t “hallucinate” — that is, it does things — but that seems to be an industry-wide problem.

We offer a ‘value added’ package

Ideally, it’s another smart home improvement

To be successful, Amazon needs to combine it with something. Prime is out, because most people who own an Alexa device probably already have one. And so is Amazon Music Unlimited, since people are already subscribed even less likely to abandon their favorite streaming platform.

The idea that comes to mind is some kind of “home” bundle. In the US, for example, the Noteworthy can be paired with Alexa Emergency Assist, which allows you to access both emergency services and personal contacts using Echo devices, while also triggering notifications for things like broken glass or smoke alarms.

Also imagine if Remarkable was able to take effective security measures, such as identifying people and packages with any Alexa-compatible camera, not just the Ring models. Smart lights can be activated in response, or simulate your presence when you’re away at night. Amazon has done that in the past with Alexa Guard.

Imagine if Remarkable could take effective security measures, such as identifying people and packages.

Heck, simply providing better communication with Amazon delivery would be helpful. You already ask “where’s my stuff” to get order status, but how cool would it be if the remarkable Alexa could give you a more accurate delivery window based on real-time truck data? Or turn on your headlights as the driver approaches?

There are endless possibilities, and there is no doubt that Amazon is measuring them. What we know so far is significantly more.

Obstacles have piled up

Even if things go well, it could be the start of Alexa’s financial recovery. If we assume that Amazing took 20 million subscribers for $ 10 per month, which would translate to $ 2.4 billion per year, it would still be less than $ 6.25 billion lost on average between 2017-2021. Amazon would not reach 20 million people very quickly, and, of course, the income would decrease by the order of $5.

I expect a big shake-up in the Alexa universe.

Unfortunately, the steps that will most help Alexa gain profit are probably the ones that have already been taken seriously. The Alexa/Devices division has recently seen major layoffs and a number of canceled product lines, including its stalwart Halo trackers. Many Echo devices haven’t been updated in years, and I wouldn’t be surprised if Amazon dropped some of them when it held its fall event. A product like the Echo Show 15 makes sense — but few people need a rotating display like the Echo Show 10. The 2024 Echo Spot could easily kill the Echo Show 5.

Speaking of that fall event, stay tuned — if Remarkable gets the green light, that’s the first we’ll hear about it. I expect a major shakeup in the Alexa universe, one way or another.