Amazon CEO Andy Jassy revealed plans to introduce ads into conversations with Alexa+, the company’s upgraded AI assistant, during the company’s second-quarter earnings call.
Alexa+, Amazon’s answer to Artificial Intelligence assistants like OpenAI’s ChatGPT and Google’s Gemini, has rolled out to millions of users. It’s currently free for Prime members, who pay $14.99 a month, while a standalone $20 monthly subscription is also available. Jassy hinted that additional subscription tiers, including an ad-free option, may be introduced later.
Jassy suggested that as users engage in longer, more natural conversations with Alexa+, advertising could help with product discovery while boosting Amazon’s bottom line.
Currently, ads on Alexa are limited—appearing as visuals on Echo Show displays or as brief audio clips between songs. But Jassy’s vision involves AI-generated ads seamlessly integrated into multi-step conversations, a strategy that could reshape how brands reach consumers through voice assistants.
The plan comes as Amazon ramps up AI spending, with capital expenditures hitting $31.4 billion in Q2 2025, a 90% jump from last year. While AWS revenue grew 18%, the company is under pressure to monetize its AI investments. Advertising, which saw a 22% revenue increase this quarter, could be key.
Source: TechCrunch