Alexa Evolves: Amazon Integrates Anthropic's Claude AI for Voice Assistants' New Era

Published Date: 1/09/2024

Amazon is set to release a revamped version of Alexa, powered by Anthropic's Claude AI, in October. The new version will offer advanced features and capabilities, including complex query answering and shopping advice.

Amazon is gearing up to release a revamped version of its popular voice assistant, Alexa, in October. The new version, codenamed 'Remarkable', will be powered primarily by Anthropic's Claude artificial intelligence models, rather than Amazon's own AI. This move marks a significant shift in Amazon's approach to AI development, as the company has typically preferred to rely on its own in-house technology.

The decision to use Anthropic's Claude AI was reportedly due to its superior performance compared to Amazon's own AI models. According to sources, initial versions of the new Alexa using in-house software struggled to respond to complex queries, sometimes taking six or seven seconds to acknowledge a prompt and reply. In contrast, Claude performed better, making it the preferred choice for the revamped Alexa.

The new Alexa is expected to offer a range of advanced features and capabilities, including complex query answering, shopping advice, and home automation. Users will be able to seek advice on what clothes to buy for a vacation, aggregate news stories, and even order food or draft emails with a single prompt. Amazon hopes that the new Alexa will also become a supercharged home automation hub, remembering customer preferences and performing tasks such as setting morning alarms and recording favorite TV shows.

Amazon plans to charge $5 to $10 a month for the new 'Remarkable' version of Alexa, while still offering the 'Classic' voice assistant for free. The company has not yet announced when it plans to hold its annual devices and services event, which will showcase the new Alexa and other devices.

The move to use Anthropic's Claude AI is not unique to Amazon. Other tech giants, such as Microsoft and Apple, have also struck partnerships with OpenAI to use its ChatGPT technology in their products. The release of ChatGPT in late 2022 sparked a frenzy of investing and corporate maneuvering in the AI space, with companies racing to develop better AI software for a range of functions.

Amazon's decision to revamp Alexa comes at a critical time for the company. Despite selling over 500 million Alexa-enabled devices, the division remains unprofitable. Senior management has stressed that 2024 is a critical year for Alexa to finally demonstrate its ability to generate meaningful sales. The new Alexa is seen as a key part of this effort, and the company hopes that its advanced features and capabilities will persuade users to pay for the premium service.

However, not everyone is convinced that users will be willing to pay for the new Alexa. Some Amazon workers have expressed skepticism that customers will be willing to pay $60 to $120 per year for a service that is currently free, on top of the $139 they already pay for their Prime memberships.

Bank of America analyst Justin Post estimated in June that there are roughly 100 million active Alexa users, and that about 10% of those might opt for the paid version of Alexa. Assuming the low end of the monthly price range, that would bring in at least $600 million in annual sales.

Amazon has invested $4 billion in Anthropic, and the company has said that its customers will gain early access to its technology. However, it is not clear whether Amazon will have to pay Anthropic additionally for the use of Claude in Alexa.

The deal between Amazon and Anthropic has also attracted attention from regulators. The UK's antitrust regulator has launched a formal probe into the deal, and the company has 40 working days to decide whether to move it to a more heightened stage of scrutiny.

In conclusion, Amazon's decision to revamp Alexa with Anthropic's Claude AI marks a significant shift in the company's approach to AI development. The new Alexa promises to offer advanced features and capabilities, and Amazon hopes that it will persuade users to pay for the premium service. However, the company still faces challenges in convincing users to pay for a service that is currently free, and the success of the new Alexa remains to be seen.

FAQS:

Q: What is the new version of Alexa powered by?

A: The new version of Alexa is powered primarily by Anthropic's Claude artificial intelligence models.

Q: What features will the new Alexa offer?

A: The new Alexa will offer advanced features and capabilities, including complex query answering, shopping advice, and home automation.

Q: How much will the new Alexa cost?

A: Amazon plans to charge $5 to $10 a month for the new 'Remarkable' version of Alexa, while still offering the 'Classic' voice assistant for free.

Q: Why did Amazon choose to use Anthropic's Claude AI?

A: Amazon chose to use Anthropic's Claude AI because it performed better than the company's own AI models.

Q: What is the expected release date of the new Alexa?

A: The new Alexa is expected to be released in October, ahead of the U.S. holiday season.

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