Amazon’s Alexa unit has historically been unprofitable, losing billions<\/a> of dollars since its introduction in 2014 \u2014 but AI could help turn things around.<\/p>\n According to a Friday Reuters<\/a> report citing eight sources “with direct knowledge” of Amazon’s plans, including current and former Amazon employees who worked on the voice assistant, Amazon is considering putting a higher AI-powered Alexa behind a subscription paywall.<\/p>\n Amazon is currently working on upgrading the free version of Alexa to one with AI capabilities, per Reuters, and plans to add a higher, subscription level of the voice assistant that can process more complex AI prompts.<\/p>\n The two levels of Alexa are internally known as the “Remarkable Alexa” and the “Classic Alexa.” Sources told Reuters that Amazon has thought about a $5 to $10 per month subscription for “Remarkable Alexa” to differentiate the two.<\/p>\n “Classic Alexa” will remain free, according to the report.<\/p>\n If implemented, the subscription would be the first major reframing of the voice assistant since Amazon introduced it.<\/p>\n Amazon’s Echo smart home devices with Alexa have been surprise hits<\/a> since they launched, but a 2022 BI report<\/a> showed that even though they’re bestsellers, most of them sold at cost.<\/p>\n Related: <\/b>Amazon Swaps Plastic Pillows For Paper Shipping Materials<\/b><\/a><\/p>\n Amazon already previewed a generative AI version of Alexa in September<\/a> and showed off how the voice assistant could talk with more personality and take in more context.<\/p>\n![\"\"](\"https:\/\/assets.entrepreneur.com\/images\/misc\/1718999006_Alexa-GettyImages-1678215490.jpg?width=1000\")
Amazon Echo Show 8 previewing new Alexa AI features. Credit: Al Drago\/Bloomberg via Getty Images<\/sup><\/i><\/p>\n