Fintechs.fi

Fintech & Crypto News

New Alexa to Feature Anthropic’s Claude AI for Better Performance

New Alexa to Feature Anthropic’s Claude AI for Better Performance

Amazon is set to launch a significantly upgraded version of its voice assistant, Alexa, in October, ahead of the U.S. holiday season. The new version, internally dubbed “Remarkable Alexa,” will utilise Anthropic’s Claude AI instead of Amazon’s in-house models. This strategic shift aims to enhance the functionality and performance of Alexa, which has faced challenges with its previous technology.

Why Amazon is Switching to Claude AI

According to sources familiar with Amazon’s plans, initial versions of the new subscription-based Alexa struggled with performance issues when powered by Amazon’s own AI models. These early iterations were notably slow in responding to user prompts, often taking several seconds to provide answers. In contrast, Anthropic’s Claude AI demonstrated superior capabilities, prompting Amazon to turn to the startup’s technology.

“Amazon uses many different technologies to power Alexa,” a company spokesperson stated. “When it comes to machine learning models, we start with those built by Amazon, but we have used and will continue to use, a variety of different models—including those from partners—to build the best experience for customers.”

The New Alexa and Its Features

The upcoming “Remarkable Alexa” will be available as a subscription service, costing between $5 and $10 per month. It will offer advanced features such as AI-generated news summaries, conversational shopping assistance, and more complex task management like food ordering and email drafting. Despite the price, Amazon plans to keep the existing “Classic Alexa” available for free.

The enhanced Alexa is also expected to integrate more seamlessly with smart home devices, offering users personalised experiences based on their preferences. The company hopes these improvements will not only boost user engagement but also drive revenue, addressing previous attempts to monetise the Alexa platform.

Regulatory and Market Challenges

Amazon’s partnership with Anthropic is currently under scrutiny by UK competition regulators, who are investigating the implications of the $4 billion investment made last year. The investigation reflects broader concerns about competition and market dominance within the tech industry.

Additionally, Alexa faces stiff competition from other advanced voice assistants, such as OpenAI’s ChatGPT and Google’s Gemini. The market is increasingly crowded, with each major tech player vying for dominance in AI-driven voice technology.

Looking Ahead

The new version of Alexa, powered by Claude AI, is scheduled for a mid-October release, with a preview expected at Amazon’s annual devices and services event in September. This event will be the first major public appearance of Panos Panay, Amazon’s new devices chief, who was hired to spearhead the company’s technology innovations.

Conclusion

Amazon’s decision to incorporate Claude AI into its revamped Alexa highlights the company’s commitment to improving its voice assistant’s performance and user experience. As it navigates regulatory scrutiny and intense competition, Amazon aims to make “Remarkable Alexa” a standout product in the crowded AI landscape.