Amazon’s CEO Andy Jassy sees the opportunity to deliver ads to users during their talks with AI digital assistant Alexa+, said during the second quarter of Amazon.
“People are excited about the devices they can buy from us who have activated Alexa+ in it. People do a lot of shopping [with Alexa+]; It is a pleasant shopping experience that will continue to improve, “Jassy said of a call with investors and analysts of Wall Street.” I think there will be opportunities over time, as people participate in more multi -speed talks, to play advertising to help people find the discovery and also as a lever to drive revenue. “
Amazon says it has unfolded Alexa+ to millions of customers, part of an attempt to make its older digital assistant capable of practical behaviors and more natural to speak. Alexa+ is Amazon’s answer to AI voice assistants from Openai, Google and Embarrassment that have made the inherited systems feel outdated. However, business models behind AI genetic products remain unclear.
Amazon has made Alexa+ free for prime customers (who pay $ 14.99 a month) and added a $ 20 a month a month for Alexa+. Jassy suggested on Thursday that Alexa+ could eventually include subscription levels beyond what is available today-perhaps an advertising tier.
Until now, ads have only appeared in Alexa in limited ways. Users may occasionally see a visual advertisement on Amazon’s Smart Display, the Echo Show or hear a pre-recorded advertisement between songs in one of Alexa’s smart speakers.
But Jassy’s description of an advertisement created by AI-At that Alexa+ delivers a multi-stage conversation that could help users find new products is unknown ground for Amazon and the wider technological industry. Merchants expressed interest in advertising in AI Chatbots and specifically Alexa+But exactly how it remains unclear.
Amazon competitors in AI seem to believe that advertising is a very promising business model for genetic AI. Google is exploring how to receive ads in the AI, AI Mode search experience. Openai Sam Altman CEO said it is open to a ”elegant” form of advertising in Chatgpt.
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Amazon spends a fortune to cover the AI race. In the second quarter of 2025, Amazon’s capital expenditure increased to $ 31.4 billion, up 90% from the same period last year. Much of these increased costs is to develop Amazon’s internal AI chips and create AI models. While Amazon’s cloud business revenue increased by 18% in the second quarter, the company probably has to create new businesses to pay for these investments.
Jassy bets that users will talk to Alexa+ more than Alexa, who could drive more advertising and more shopping at Amazon.com. However, early reviews of Alexa+ have been mixed. Amazon reportedly struggled to convey some of Alexa +’s most complex features and growth was slower than expected.
There is a lot to understand before Amazon puts ads on Alexa+. Like most AI models, Alexa+ is not immunity to illusions. Before advertisers agree to make Alexa+ a representative for their products, Amazon may need to find some ways to ensure that AI does not offer false advertising for a product.
Jassy seems enthusiastic about advertising a larger part of the Amazon business. Amazon’s advertising revenue increased by 22% in the second quarter, compared to the same period last year.
Delivery of AI chatbot conversations can also cause concerns about privacy. People tend to talk more with AI Chatbots compared to deterministic assistants, such as traditional Alexa and Siri products. As a result, AI Chatbots genetics tend to collect more information about users. Some users may be upset by the sale of this information to advertisers and the appearance of ads in their natural language talks with AI.
