Amazon is set to introduce an updated version of its Alexa voice assistant later this year, incorporating generative AI technology.

The new Alexa aims to enhance conversational capabilities and compete with advanced chatbots like Google's Gemini and OpenAI's GPT-4o.

The updated Alexa will require a separate monthly subscription fee, although pricing details are still being determined.

Former Amazon executive David Limp had hinted at the possibility of charging for a more powerful version of Alexa.

The subscription model is seen as a way to keep Alexa relevant and innovative in the rapidly evolving AI landscape.

Despite significant investments in AI, the current Alexa has struggled in certain situations, leading to restructuring within Amazon's Alexa division.

There are growing concerns about the future of Echo devices.

To further boost its AI capabilities, Amazon has backed startup Anthropic with $4 billion.