Amazon's Alexa+ AI push: Here's what to know

Core Insights - Amazon's shares are outperforming the NASDAQ, with a focus on e-commerce during the holiday shopping season, particularly Black Friday and Cyber Monday [1] - The company is attempting to enhance its AI strategy with the introduction of Alexa Plus, which aims to improve user interaction and leverage its existing Echo device ecosystem [2][4] AI Strategy - Alexa Plus is designed to facilitate more natural conversations and remember user contacts, positioning Amazon to compete in the voice AI market [2] - Despite holding a 61% market share in the US smart speaker segment, Amazon has struggled to translate this into significant AI advancements, while competitors like Google have gained momentum with their TPU chips [3][5] Competitive Landscape - Alphabet's shares have surged nearly 70% this year, contrasting with Amazon's less than 6% increase, highlighting the competitive pressure in the AI space [5] - The return of Google co-founder Sergey Brin to lead AI initiatives raises questions about Amazon's ability to leverage its consumer base for AI development beyond AWS [4] Consumer Interaction - Early reviews of Alexa Plus indicate improvements in chatbot capabilities, but the real test will be its effectiveness in executing orders for household items [9][10] - There is skepticism regarding consumer usage of Echo devices for ordering, as many users report mistakes and limited engagement with the technology [8] Future Outlook - The upcoming holiday shopping season is expected to shift towards AI-driven commerce, with analysts suggesting that Amazon needs to establish a stronger presence in this area [7]