Amazon‘s Alexa, the ubiquitous voice assistant that has become a household name, could be on the verge of a significant change. According to a recent report by Reuters, the tech giant is considering a two-tiered system for Alexa, with a free “Classic Alexa” and a paid “Remarkable Alexa” featuring more advanced AI capabilities.

This move comes as Amazon faces increasing competition in the AI assistant space from companies like Google with its Gemini models and Microsoft with Copilot. The report suggests that Amazon feels the need to revamp Alexa with stronger AI to stay ahead of the curve.

The “Remarkable Alexa” would reportedly come with a price tag of $5 to $10 per month. This paid version would offer users a wider range of functionalities, including:

• Enhanced shopping assistance: “Remarkable Alexa” is designed to integrate more deeply with Amazon’s online store, offering users personalized shopping advice and streamlining the purchase process.
• Handling complex tasks: The paid tier would allow users to tackle more intricate tasks with a single voice command. Imagine composing emails, ordering takeout, or booking a ride through Uber Eats, all through Alexa.

However, this convenience comes at a cost. Unlike the free “Classic Alexa,” “Remarkable Alexa” wouldn’t be included with a Prime membership, a move that might raise eyebrows among some loyal Amazon customers.

The report also highlights some potential roadblocks for Amazon’s ambitious plans. The development of “Remarkable Alexa” has reportedly faced challenges, including issues with the AI generating false or misleading information – a phenomenon known as “AI hallucinations.” Additionally, the project has allegedly been plagued by low employee morale.

These internal struggles come on top of rumors suggesting delays and setbacks in the development process. Whispers about “Remarkable Alexa,” or “Alexa Plus” as it was then called, have been circulating since January. These early reports mentioned a testing phase involving 15,000 users and hinted at potential development problems.

Despite these hurdles, Amazon is reportedly targeting a June 30th launch for “Remarkable Alexa.”