Unlock stock picks and a broker-level newsfeed that drives Wall Street. Upgrade Now. Amazon introduces AI-enhanced Alexa+ as it aims to revitalize its aging voice assistant. In This Article: Amazon (AMZN) is revitalizing its decade-old Alexa voice assistant by incorporating generative AI features to better compete with rivals like Google’s (GOOG, GOOGL) Gemini and Microsoft-backed (MSFT) ChatGPT. At an event in New York City on Wednesday, Panos Panay, Amazon's head of devices and services, introduced Alexa+, an evolved version of Alexa that utilizes Amazon's proprietary large language models as well as those from Anthropic, which has received significant investment from Amazon. Priced at $19 per month and free for Prime members, Alexa+ aims to transform the assistant with advanced AI capabilities that allow it to perform various tasks across multiple applications. During the demo, Panay showcased features such as Alexa’s ability to remember personal preferences for household members, like favorite foods, enhancing the ordering process. He also illustrated the convenience of managing home devices using intuitive voice commands. In one instance, he asked Alexa+ if anyone had walked his dog recently, and the AI retrieved video clips from a Ring camera showing his children taking the dog out. Additional demonstrations included uploading documents for specific inquiries, asking detailed questions about favorite sports teams, and even requesting and booking an Uber for a friend returning from the airport. The focus was to show that Alexa+ goes beyond basic functionalities like setting timers or playing music. Interactions with the assistant sounded natural, allowing users to pose questions without resorting to the awkward phrases typical in the past. Originally, Amazon designed Alexa to function as a gateway for users to sign up for Prime subscriptions and to facilitate quick purchases on its e-commerce platform.

However, this approach didn't achieve its intended outcomes. "Forrester VP and principal analyst Thomas Husson noted ahead of the event, 'This strategy failed, and the company has invested $25 billion in its Alexa division without truly transforming smart homes. '" In response to the announcement, Amazon's stock rose approximately 2%. 214. 35 - +(0. 73%) At close: February 26 at 4:00:00 PM EST Amazon is investing billions into generative AI to maintain its leadership in the sector, expecting to surpass $100 billion in spending by 2025, including expanding data centers and applications. During the event, Amazon CEO Andy Jassy highlighted the company's generative AI achievements, stating it has or is in the process of developing 1, 000 generative AI applications. "I’m not sure there’s another company globally making as comprehensive an investment in AI as we are, " Jassy asserted. The CEO also praised the Trainium 2 AI chip, claiming it delivers 30% to 40% better price performance compared to Nvidia's alternatives. The success of Alexa+ will depend on its practical effectiveness and whether customers are willing to give it another chance. The rollout of Alexa+ in the US is expected in the coming weeks. Contact Daniel Howley at dhowley@yahoofinance. com. Follow him on Twitter @DanielHowley. For the latest technology news impacting the stock market, click here. Stay updated with financial and business news from Yahoo Finance.