Overview

• CEO Andy Jassy said targeted ads will be woven into multi-turn Alexa+ dialogues to enhance product discovery and drive revenue.
• Alexa+ now serves millions of U.S. users as a generative AI assistant with agentic features, but its rollout has lagged behind Amazon’s initial timeline.
• Amazon currently offers Alexa+ free to Prime subscribers and for $20 a month standalone and is considering new subscription tiers, including an ad-free option.
• The push to embed ads marks a shift from Amazon’s previous loss-leading device strategy toward direct monetization amid rising AI development costs.
• Industry observers warn that in-conversation advertising could heighten data-collection, hallucination risks and invite regulatory scrutiny before global expansion.