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Amazon Explores AI Voice Ads Through Alexa+ Conversations
Key Takeaways
- Amazon is exploring the idea of inserting voice ads into Alexa+ conversations to support product discovery and boost revenue;
- Alexa+ is part of Amazon’s effort to modernize its assistant and compete with newer AI tools from companies like Google and OpenAI;
- Jassy hinted at future pricing tiers for Alexa+, including a possible ad-free option for paying subscribers.
Amazon is exploring the idea of including ads in conversations with Alexa+, its upgraded artificial intelligence (AI) voice assistant.
According to a report by TechCrunch, CEO Andy Jassy stated during the company’s second-quarter earnings call that ads could play a useful role as people interact more with Alexa+ in multi-step conversations.
Jassy noted, "I think over time, there will be opportunities, as people are engaging in more multi-turn conversations, to have advertising play a role to help people find discovery, and also as a lever to drive revenue".
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Alexa+ is part of Amazon’s strategy to improve its older voice assistant by making it more capable and easier to talk to. Millions of users already have access to it, and it is meant to compete with new AI voice tools from OpenAI, Google, and Perplexity.
Currently, Alexa+ is free for Prime members, who pay $14.99 per month for the membership. There is also a separate subscription option for Alexa+ at $20 a month. Jassy suggested that more pricing options may be added in the future, which may possibly include one that removes ads.
Until now, advertising within Alexa has been limited. Sometimes, users might hear a short audio ad between songs or see a product promotion on the Echo Show screen.
On July 28, Google introduced a new feature in the United Kingdom called "AI Mode". How does it work? Read the full story.