Amazon Alexa+ to introduce voice assistant advertising in multi-turn interactions
Ads woven into shopping and discovery dialogues for enhanced product recommendations
Potential ad-supported tier may lower Alexa+ subscription costs for users
New ad revenue stream underwrites AI chip development and data-centre investments
Amazon CEO Andy Jassy signalled on Thursday that the company plans to introduce advertising into multi‑turn interactions with its upgraded voice assistant, Alexa+.
Speaking on Amazon’s second‑quarter earnings call, Jassy explained that as users engage in longer conversational sessions to shop and explore products, “there will be opportunities…to have advertising play a role to help people find discovery and also as a lever to drive revenue.”
Amazon’s Alexa+ is a direct rival to ChatGPT-style voice assistants. It has already been rolled out to millions of customers free for Prime subscribers and available via a standalone $20 monthly tier. Jassy suggested that future subscription plans might include ad‑free options, implying that an ad‑supported tier could one day reduce costs for users.
Until now, ads on Alexa have been limited to pre‑recorded spots between songs or occasional banner ads on Echo Show displays. But Jassy’s remarks represent a departure: envisioning dynamic AI‑generated recommendations woven into back‑and‑forth dialogues. He noted that shoppers today already complete purchases with Alexa, a “delightful shopping experience that will keep getting better”, and that advertisers are keen to reach customers in this new format.
Amazon is far from alone in exploring ads within AI interfaces. Google is trialling placements in its AI‑driven “AI Mode” search experience, and OpenAI CEO Sam Altman recently said he’s open to “tasteful” advertising in ChatGPT. Yet the mechanics remain murky: how to ensure accuracy, prevent hallucinations and avoid eroding consumer trust are all unresolved challenges.
Investors pressed Jassy on the economics: Amazon’s capital expenditures skyrocketed 90 % year‑on‑year to $31.4 billion in Q2, driven largely by in‑house AI chip development and data‑centre expansions. With AWS growth moderating, new revenue streams such as AI‑focused advertising could help underwrite these massive investments. Amazon’s broader ad business did grow 22 % in the quarter, showing advertiser appetite for the company’s ubiquitous shopping platform.
Privacy advocates may raise objections as well. Generative AI assistants like Alexa+ by design capture richer conversational context than rule‑based systems, potentially creating detailed user profiles for ad targeting. Amazon will need to navigate regulatory scrutiny and user concerns as it fine‑tunes how, and how much, advertising is woven into everyday AI dialogues.
