Amazon is upgrading its Alexa voice assistant with generative artificial intelligence technology to compete with Google and Open AI's chatbots. The new Alexa, launching later this year, will offer a more conversational experience and come with a monthly subscription fee. This move marks a significant shift from Amazon's current business model and is seen as essential to keeping up with rapid advancements in AI technology. Amazon's large installed user base of over 500 million Alexa-enabled devices gives it an advantage, but it faces challenges in finding AI engineering talent and offsetting the cost of using generative AI.

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