Amazon's Alexa AI Push To Rival ChatGPT Will Use External Help...
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Amazon's own AI development has been a struggle. Amazon's revamped Alexa, scheduled for release in October ahead of the U.S. holiday season, is set to be powered primarily by Anthropic's Claude artificial intelligence models, rather than its own AI, according to five sources familiar with the matter as reported by Reuters.
Alexa's Evolution
Amazon plans to introduce a new "Remarkable" version of Alexa that will be priced at $5 to $10 a month. This upgraded version will utilize powerful generative AI to respond to complex queries, while the "Classic" voice assistant will remain free of charge.
Initially, Amazon's in-house software for the new Alexa faced challenges, with delays in responding to prompts. To address this, Amazon turned to Claude, the AI chatbot developed by startup Anthropic, as it outperformed Amazon's own AI models.
AI Partnerships in the Tech Industry
Amazon's decision to leverage external technology for Alexa marks a departure from its usual strategy of internal development. Other tech giants like Microsoft and Apple have also formed partnerships, such as with OpenAI and its ChatGPT, to enhance their AI capabilities.
Customer Adoption and Revenue Generation
While Amazon aims to boost sales through the upgraded Alexa, concerns have been raised about user willingness to pay for a service that was previously free. The paid version of Alexa is designed to offer advanced conversational capabilities, personalized shopping advice, news aggregation, and seamless task execution.
Amazon anticipates that the new Alexa will serve as a comprehensive home automation solution, catering to customer preferences and streamlining daily tasks.
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Future Prospects
As Amazon navigates the evolving AI landscape, the success of the new Alexa remains pivotal for the company. Market analysts project significant revenue potential from the paid version of Alexa, although user adoption rates and pricing strategies will influence its financial impact.
Amazon's strategic investment in Anthropic and the utilization of Claude in Alexa signify the company's commitment to innovation and enhancing customer experiences through advanced AI technology.
