TLDR:
– Amazon is partnering with Anthropic’s AI model Claude to power the new version of Alexa called “Remarkable”, set to be released in October.
– The paid version of Alexa will offer more advanced features, such as carrying on conversations, providing shopping advice, aggregating news stories, and fulfilling complex requests.
Full Article:
Amazon has announced a partnership with Anthropic’s artificial intelligence model Claude to power the revamped version of its voice assistant, Alexa, named “Remarkable”. This new version of Alexa will utilize generative AI to answer complex queries and is scheduled for release in October. In a departure from its usual practice of relying on in-house technology, Amazon plans to charge a monthly fee of $5 to $10 for the Remarkable version, while also offering the free “Classic” voice assistant.
The decision to partner with Anthropic came after initial versions of Remarkable Alexa using in-house software struggled to respond effectively to prompts. The paid version of Alexa aims to provide more advanced features, including carrying on conversations, offering shopping advice, aggregating news stories, and fulfilling more complex requests like ordering food or drafting emails. Amazon also hopes that the new Alexa will serve as a home automation hub, remembering customer preferences and automating tasks like setting alarms and recording favorite TV shows.
The success of the paid version of Alexa is critical for Amazon’s revenue goals and to catch up with competitors in the AI market. While Amazon has been trying to increase revenue by convincing users to shop through Alexa, these efforts have not been as successful as hoped, with the division remaining unprofitable. By aiming to demonstrate Alexa’s revenue-generating potential with the revamped version, Amazon hopes to reach its goal by 2024.
Despite facing skepticism from some Amazon workers about customers’ willingness to pay an additional fee for the paid version of Alexa, Bank of America analyst Justin Post estimates that around 10% of the 100 million active Alexa users might opt for the paid version, potentially bringing in significant annual sales.
It’s worth noting that Anthropic is currently facing a copyright infringement lawsuit from three authors, alleging unauthorized use of copyrighted works to develop their AI models, including Claude. This case highlights the challenges surrounding copyright infringement in the AI industry. However, Amazon is moving ahead with its plans to release the new version of Alexa in October, although details of the agreements with Anthropic have not been disclosed, raising questions about potential fees for the use of Claude.