Amazon Shifts Attention to Generative AI

Amazon

Amazon is shifting its production efforts towards integrating Alexa into generative AI due to its poor hardware sales performance. Credit: Public Domain

Amazon is shifting its production efforts to generative AI due to the overwhelmingly poor performance of Amazon’s hardware products.

The company, which introduced artificial intelligence services with Alexa in 2014, claims that this was always meant to be an “evolving” service.

The tech giants added: “A longstanding mission has been to make a conversation with Alexa as natural as talking to another human, and with the rapid development of generative AI, what we imagined is now well within reach.”

The company will offer a preview of its generative AI technology at a technology panel in November.

Amazon’s longstanding mission: making Alexa a human-like speaker

From Amazon’s point of view, after selling more than half a billion Alexa devices, the device has “become part of the family in millions of households.”

Whether this is the case or not, the truth is that Amazon saw the potential of language models, such as ChatGPT, and is planning to join the generative AI bandwagon.

Amazon’s generative AI large language model is custom-built and “optimized for voice interactions.”

According to the company, it will enable customers to attain higher-quality real-time information, have more efficient smart home controls, and maximize entertainment options.

Additionally, Amazon claims that to enhance Alexa’s conversational skills, they trained their generative AI to process additional information. This might include body language, eye contact, and previous knowledge of individuals.

Amazon to integrate generative AI with APIs

Amazon has also stated that to maximize its generative AI capabilities, the “new” Alexa will be connected in real-time to hundreds of live APIs.

These application programming interfaces are a set of protocols that enable various software components to communicate and transfer data. In the most basic of terms, it is a bridge between two pieces of software.

The company claims that this connection between Alexa and the APIs “enhances Alexa’s ability to process nuance and ambiguity—much like a person would—and intelligently take action.”

According to Amazon, this will enable customers to program complex instructions for Alexa solely by using their voice, limiting the need for the use of an app.

Why is Amazon experimenting with this technology?

Industry analysts claim that Amazon has shifted its attention to generative AI because its hardware devices are causing Amazon to lose out on revenue.

According to a report published by The Wall Street Journal, Amazon’s hardware division lost $25 billion between 2017 and 2021. On top of this large sum, during 2022, the Alexa department lost $10 billion in 2022.

These catastrophic losses ultimately resulted in many layoffs in this department during 2023. Now, Amazon is looking to get back into the game by integrating Alexa into generative AI.