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Inside Amazon's agonizing attempt to save Alexa with AI
- Amazon is struggling to launch its new AI-powered Alexa, which is said to have been plagued by delays and technical issues.
- Partnerships with companies like Uber and Ticketmaster have complicated troubleshoot processes, leading to struggles in defining responsibilities for customer interactions.
- Latency and compatibility issues have also contributed to the delaying of the new Alexa's release.
- The Alexa team is in a race against time to get something out, after the early success of the voice assistant business fizzled and led to cutbacks in recent years.
- Despite the challenges, some Amazon insiders see this AI moment as a seismic opportunity for Alexa, which could reignite consumer interest through the power of large language models.
- Latency has been a particularly tough challenge for the new Alexa, with some tests revealing a 40-second lag in response times.
- Amazon has considered using smaller AI models to boost quicker response times, but these often compromise on quality and accuracy of answers.
- Only 308 of more than 100,000 existing Alexa voice-controlled applications are compatible with the new offering, presenting a high risk for user frustration.
- Amazon anticipates 176,000 customer contacts in the first three months following the AI Alexa's launch, leading to the consideration of launching an automated troubleshooting service.
- Amazon’s vision for the new Alexa is a personalised digital assistant, but there are concerns over customer friction, partnerships, compatibility, latency and accuracy issues.
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