Amazon could charge £7.99 to use improved Alexa capable of ‘near-human-like conversations’

Amazon usually unveils new iterations of its Echo, Fire TV, and Kindle hardware in September.

With an embedded AI, Amazon expects Alexa customers will ask it for shopping advice like which gloves and hat to purchase for a mountain climbing trip, the people said, similar to a text-based service on its website known as Rufus that Amazon rolled out earlier this year.

Amazon already offered a sneak peek of how large language models will enhance Alexa during its annual hardware event, held at its corporate headquarters in Arlington, Virginia in September last year.

In a live demo on-stage, Amazon devices boss Dave Limp revealed how the latest iteration of the assistant would be more expressive in its responses – for example sounding happier when returning a positive score result for your favourite sports team.

Not only that, but by saying “Let’s Chat” to Alexa, users can speak with the virtual helper without the use of the wake phrase “Alexa” every time, making each exchange feel more conversational and natural.

You’ll even be able to pick up a conversation after a short break and Alexa will still remember all of the context from the previous exchanges.

Dave Limp promised that Alexa can understand inferences and more vague prompts in a way that he described will be “like talking to a friend”. For example, the new Alexa can respond to the prompt “I’m cold” by turning on the heating in a connected home.

“You can now have a near-human-like conversations with Alexa,” promised Dave Limp at the time. The executive has since left Amazon.

Amazon is working to replace what it refers to internally as “Classic Alexa,” the current free version, with an AI-powered one and yet another tier that uses more powerful AI software for more complicated queries and prompts that people would have to pay at least $5 per month to access, sources within the company claim.

The final subscription has yet to be decided within Amazon, but with a reported $4 billion investment in AI research company Anthropic to train Alexa on large language models, the Seattle-based retailer has a long way to go before it breaks even. Unfortunately, there’s no discount for those who subscribe to the £95 a year Amazon Prime membership, sources claim.

Similar to what we’ve seen from ChatGPT and Gemini, a paid-for Alexa could perform more intricate tasks, like writing a brief email, sending it and ordering dinner for delivery from Uber Eats from a single prompt. It would offer more personalisation by learning your routine and preferences.