Amazon's Alexa unit has historically been unprofitable, losing money billions dollars since its introduction in 2014 – but AI could help change things.

According to a Friday Reuters Citing eight sources “with direct knowledge” of Amazon's plans, including current and former Amazon employees who have worked on the voice assistant, the report says Amazon is considering putting a higher-end AI-powered Alexa behind a wall subscription payments.

Amazon is currently working on upgrading the free version of Alexa to an AI-enabled version, according to Reuters, and plans to add a higher subscription level of the voice assistant that can process more complex AI requests.

The two levels of Alexa are known internally as “Alexa Extraordinary” and “Alexa Classic.” Sources told Reuters that Amazon is considering a $5 to $10 per month subscription for “Remarkable Alexa” to differentiate the two.

“Classic Alexa” will remain free, the report says.

If implemented, the subscription would be the first major overhaul of the voice assistant since Amazon introduced it.

^{Amazon Echo Show 8 looking at new Alexa AI features. Credit: Al Drago/Bloomberg via Getty Images}

Amazon's Echo smart home devices with Alexa have been a surprise hit since their inception, but a 2022 BI report showed that even though they are bestsellers, most of them are sold at cost.

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Amazon has already shown off a generative AI version of Alexa in the September and showed how the voice assistant could speak with more personality and get more context.

Amazon stated at the time that it had sold more than half a billion devices with Alexa and that the AI ​​features “will be available to Alexa customers in the US soon”.