Amazon to overhaul Alexa with monthly fee and advanced AI

Amazon is planning a big makeover for its money-losing Alexa service, which includes adding advanced conversational AI and offering two different service levels.

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Internally known as "Banyan," this project marks the first major update for Alexa since its launch in 2014 alongside the Echo speakers.

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The upgraded voice assistant, internally dubbed "Remarkable Alexa," aims to enhance user experience significantly.

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Sources, including current and former Alexa team members, revealed these details anonymously due to project confidentiality.

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CEO Andy Jassy has set an ambitious deadline of August for the revamped Alexa, showing personal interest in its success.

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Amazon recently raised prices for its Alexa services and is exploring new pricing models, including a potential $5 monthly fee for enhanced features.

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The company's plans, including pricing and release dates, are subject to change based on the progress of Project Banyan.

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Amazon aims to integrate advanced AI across its Alexa-enabled devices to offer more proactive and personalized assistance to users.

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Despite efforts to compete with rivals like Google and Microsoft in AI technology, Amazon's Alexa service has struggled to turn a profit.

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The future of Alexa hinges on its ability to evolve beyond basic functions like setting timers and playing music, potentially boosting Amazon's overall sales strategy.

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