Amazon Weighs Ads for Alexa+ AI Conversations

Amazon is reportedly exploring the integration of advertisements into conversations held with Alexa+, its next-generation generative AI voice assistant. This development comes as the company continues to roll out early access to the service, which it has positioned as a significant evolution of its voice technology.

Since 2023, Amazon has been developing Alexa+ with the aim of making it more conversational, capable, and ultimately, more profitable. While the product is not yet publicly available, and some promised features are still under development, “millions” of users in the US have already gained early access.

During an investor call yesterday, Amazon CEO Andy Jassy addressed the long-term potential for “increasing engagement” with Alexa+. According to a transcript of the call, Jassy stated, “I think over time, there will be opportunities, you know, 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.” A broader, international rollout of Alexa+ is anticipated later this year.

This move signals Amazon’s intensified efforts to monetize its voice assistant ecosystem. While Alexa has historically not generated direct revenue from users, Amazon hopes Alexa+ will change this by playing a larger role in e-commerce—facilitating tasks like booking restaurant reservations, tracking and ordering groceries, and recommending streaming content based on user interests. The financial pressure on Amazon’s voice initiatives is significant, with reports indicating Alexa has cost the company an estimated $25 billion over four years.

Echo Show devices already display ads, and Echo speaker users may encounter advertisements when listening to music. Advertisers have expressed interest in integrating with Alexa+, yet the prospect of ads within a conversational AI raises concerns. As Joel Daly, co-founder of marketing agency Artemis Ward, previously noted, there’s a risk of alienating users who have yet to fully experience the potential of voice assistants. The combination of tailored advertising with the perceived invasiveness of always-listening devices could discourage adoption, compounded by privacy concerns. While Jassy framed ads as a tool for user discovery, the primary motivation appears to be addressing Amazon’s financial challenges with voice technology.

Amazon is not alone in exploring this monetization strategy; other major chatbot developers are also considering or implementing ads. Google’s AI Overview already incorporates advertisements, and the company has been testing ads in its AI Mode. OpenAI CEO Sam Altman has also not ruled out the possibility of ads in ChatGPT.

For now, Alexa+ remains in its early stages. Amazon’s immediate priorities are catching up with competitors, delivering on promised features, and making the chatbot publicly available. Currently, early access is limited to owners of Echo Show 8, 15, and 21 devices in the US. Upon public release, Alexa+ is expected to be free for Amazon Prime subscribers (Prime membership starts at $15 per month) or available for $20 per month for non-Prime members. Jassy also hinted at the potential for charging extra for advanced Alexa+ features as they become available.

“It’s still very early days, but we’re very encouraged by the experience we’re providing, and you can bet we’re gonna be iterating on it constantly,” Jassy affirmed.