Amazon is preparing to launch a revamped version of Alexa, its virtual assistant, in October in the United States. According to information obtained by Reuters, this new version will use artificial intelligence Claude, developed by Anthropic, instead of Amazon's own AI models.
The decision to turn to Anthropic's technology comes after problems presented by earlier attempts to improve Alexa with in-house software. According to sources cited by Reuters, these initial versions had difficulty processing commands, with significant delays in voice recognition.
Claude will allow Amazon to offer a more advanced version of Alexa, called "Remarkable Alexa," which will cost an estimated $5 to $10 per month. The company will keep the basic, free version of the assistant, known as "Classic Alexa," without significant changes.
Amazon has justified incorporating external technology to improve the user experience. Although the company traditionally avoids relying on technologies it does not directly control, Claude's superior performance compared to its AI models was decisive in this choice.
In addition, the new version of Alexa will seek to compete with other voice assistants that have improved significantly thanks to the incorporation of advanced technology, such as OpenAI's ChatGPT in Microsoft and Apple products.
The Remarkable Alexa product will also focus on home automation, allowing devices to remember specific user preferences. Among other functionalities, the assistant is expected to handle more complex tasks, such as placing orders or composing emails from a single command.
Reuters notes that although Amazon plans to launch a preview of the new service during its annual devices and services event, it has yet to announce the official date. The event will mark Panos Panay's first public appearance as Amazon's head of devices.
This virtual assistant market has become increasingly competitive, especially since the launch of ChatGPT in 2022, which has led to an intensification of AI software development at several tech companies. In this context, Amazon has redoubled efforts to maintain the relevance of Alexa, a product that, while popular, has failed to establish itself as a significant source of revenue.
Reuters analyst Justin Post estimates that the new version of Alexa could attract around 10% of the platform's current active users, which would translate into at least $600 million in annual revenue if they adopt the monthly subscription.
Amazon opts for Anthropic's AI due to performance issues
Despite expectations, Amazon has been cautious about implementing the new features, indicating that the product could be delayed or adjusted if it does not meet specific quality criteria. This strategy reflects the company's cautious approach as it attempts to revitalize a technology that many consider a laggard compared to newer alternatives on the market.
Amazon's investment in Anthropic, which includes a $4 billion deal, underscores the importance of this project to Alexa's future. However, the relationship between the two companies is under the microscope of regulators in the UK, who have launched an antitrust investigation to assess the impact of this deal on competition.
