Amazon’s (AMZN) AI upgrade of its Alexa device is expected to be delayed because of one rather inconvenient problem – it gives wrong answers to questions.
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Launch Delayed Until March
According to the Washington Post, Alexa’s AI boost, which should have been unveiled at an event in New York on February 26, will now be pushed back to March 31 or later. The delay, according to an “anonymous employee,” is due to “a new version of the assistant giving incorrect answers to test questions at a recent meeting.” Amazon had hoped that the new Alexa would deliver a “smarter and more conversational experience” for customers. It can also, apparently, carry out actions without any prompt from a user such as calling a taxi.
There were no further details such as whether the questions which stumped the AI brain revolved around cheese, chocolate or chihuahuas, but the delay will be a blow to Amazon as it strives to keep pace with rivals such as Meta Platforms (META), Apple (AAPL) and Alphabet (GOOGL) in the AI tech race.
Alexa Users Might Have to Pay
Indeed, the Washington Post said that the AI Alexa project has already been delayed once before with staff apparently told that the revamped product would be available in November last year in time for the Presidential Election. Who knows what questions it might have been asked on election night and the morning after? It is understood that 6 million people in the U.S. use an Alexa with the device holding a 66% market share. Worldwide, as of 2023 figures, it has sold 500 million. However, there have been concerns over increasing competition and reports that its sales have come at a loss for the group. It is why Amazon is reportedly looking at adding a monthly fee of around $10 for its new AI version when it finally appears in people’s homes. The most common question then could be “How Much Alexa?”
Is AMZN a Good Stock to Buy?
On TipRanks, AMZN has a Strong Buy consensus based on 47 Buy and 1 Hold rating. Its highest price target is $306. AMZN stock’s consensus price target is $268.91 implying an 17.39% upside.
