Amazon CEO Andy Jassy has revealed plans to introduce ads into user conversations with Alexa+, the company’s AI-powered digital assistant. Speaking during Amazon’s second-quarter earnings call, Jassy shared that Alexa+ presents a growing opportunity for advertising as users increasingly engage in multi-step interactions.
“People are excited about the devices that they can buy from us that has Alexa+ enabled in it. People do a lot of shopping [with Alexa+]; it’s a delightful shopping experience that will keep getting better,” Jassy told investors. “I think over time, there will be opportunities, 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.”
Alexa+ has been rolled out to millions of users and aims to offer more natural, intelligent conversations, competing with other generative AI assistants from companies like OpenAI and Google. While Amazon has previously included limited ads in Alexa through smart displays or music interruptions, this new direction would see ads integrated within dynamic AI conversations.
Currently, Alexa+ is free for Prime members and also available as a standalone $20 monthly subscription. Jassy hinted at the possibility of future paid tiers, including ad-free options.
Jassy’s proposal of embedding AI-generated ads into real-time chats represents new ground for both Amazon and the broader tech industry. While the idea has caught marketers’ attention, exactly how it will work remains uncertain. Other tech giants are also exploring similar monetisation models, with Google testing ads in its AI search experience and OpenAI’s CEO open to “tasteful” advertising in ChatGPT.
Amazon’s increased investment in AI is significant, with capital spending reaching $31.4 billion in the second quarter, a 90 percent rise from last year. Much of this is going toward developing AI chips and expanding data infrastructure. To justify such investments, Amazon is seeking new revenue streams beyond its growing cloud business.
Still, Alexa+ is in its early stages. Reviews have been mixed, and some features have seen delays. As Jassy pushes forward, the challenge lies in ensuring that Alexa+ can deliver accurate information without risking false advertising. Additionally, integrating ads into personal conversations raises privacy concerns, especially as AI assistants gather more user data.
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