Amazon is toying around with putting ads in Alexa+

It’s the end of another quarter, which means it’s time for yet another earnings call with concerning ideas for generating more revenue. This time around, it’s Amazon CEO Andy Jassy, who told shareholders on Thursday that there’s “significant financial opportunity” in delivering ads through Alexa+, the company’s new AI-powered voice assistant.

“I think over time, there will be opportunities, you know, 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,” Jassy said, per the investor call transcript.

Since launching earlier this year, Alexa+ has reportedly reached millions of users. Unlike the original Alexa, which mostly turns off lights and sets timers, Alexa+ is designed to be more conversational, context-aware, and AI-driven. It can help you plan your date night, entertain your kids, and even dabble in basic image and video generation — all under the banner of your $14.99/month Prime subscription.

But so far, Amazon Alexa has been an ad-free experience. It’s also more than 10 years old, and it doesn’t make money; thus, it’s been deemed a “colossal failure” by those within the company.

Of course, Amazon isn’t alone in trying to figure out how to make AI pay for itself. Both Google and OpenAI have explored ad integration in their AI products as a way to generate revenue. OpenAI CEO Sam Altman, in particular, has made a notable pivot: once firmly against advertising in his chatbot, he’s since reversed course, possibly opening the door for ads in future versions of ChatGPT.

Whatever the motivation, injecting ads into Alexa+ would mark a major shift in both user experience and Amazon’s strategy, especially given the assistant’s long history of being expensive to maintain and hard to monetize. Ad-supported Alexa+ could be Amazon’s attempt to finally turn its once-money-burning smart assistant into a revenue machine, without hiking the subscription fee (at least for now).

Alexa+ is still new, and what an ad-supported experience would actually look like remains unclear. According to Jassy, the idea is to frame ads as helpful, something to assist customers in discovering products they might be interested in buying.