Tech Giant’s Strategic Moves to Outshine Consumer Rivals

Amazon is now taking its consumer AI ecosystem to the next level by expanding Alexa’s capabilities beyond smart speakers. The company is introducing Alexa+ to the web, revamping its mobile app, and providing an update on its acquisition of Bee, a wearable AI startup.

These announcements, made during CES in Las Vegas, signify Amazon’s commitment to staying competitive in the consumer AI space. While Amazon’s cloud services are well-established in the AI infrastructure and enterprise sectors, it has faced challenges in keeping pace with other consumer AI giants like OpenAI and Google, as well as the rapidly growing field of consumer AI startups.

One of the key updates is the launch of a redesigned Alexa mobile app that puts the AI assistant front and center. The new interface features an “Ask Alexa” prompt, personalized suggestions, and easy access to devices and favorites, streamlining the user experience and emphasizing Alexa’s capabilities.

In addition, Amazon has made Alexa+ available on the web through alexa.com for all customers in its early access program. This web interface extends Alexa’s functionality beyond voice commands, allowing users to upload documents, integrate web-based chat, and control reminders, calendars, and smart home devices with a few clicks.

Alexa+ leverages generative AI to provide more natural conversations and improved responses compared to its predecessor. It also introduces new capabilities such as booking tickets and reservations, enhancing the overall user experience.

Amazon faces competition from other consumer AI players like ChatGPT and Gemini, but it aims to leverage its extensive network of Alexa-enabled devices and unique features such as smart home controls to differentiate itself in the market.

The company had previously experimented with a conversational feature called “Let’s Chat” but shifted its focus to Alexa+ after realizing the need for a more robust AI assistant. The Vice President of Alexa and Echo, Daniel Rausch, emphasized the importance of Alexa+ in providing advanced functionalities beyond simple chat interactions.

The rollout of Alexa+ in March 2025 has been met with positive reception, with millions of customers now using the upgraded AI assistant. Engagement rates with Alexa+ are reported to be two to three times higher than with previous versions, indicating the value it brings to users.

Rausch highlighted that 76% of Alexa+ interactions involve tasks that are unique to Amazon’s AI, such as device control, household management, and multi-step task completion across various services and devices.

Amazon is also exploring hardware options to expand Alexa’s reach beyond residential settings. The acquisition of Bee, a wearable AI startup, has led to the development of innovative features that enhance user experiences in different environments.

Since joining Amazon, Bee has introduced several new features within a short period, including Voice Notes for capturing thoughts on the go, Actions that link conversations to email and calendar, and Daily Insights that analyze patterns in user interactions over time.

The acquisition of Bee reflects Amazon’s vision for “ambient AI,” a technology that seamlessly integrates into users’ daily activities and provides assistance across different platforms throughout the day.

While Amazon has not disclosed specific plans for integrating Bee with Alexa, the company’s commitment to expanding its AI capabilities beyond traditional boundaries is evident in its strategic acquisitions and developments.

Amazon’s efforts to bring Alexa+ to third-party hardware, such as speakers, TVs, and cars, demonstrate its commitment to making the AI assistant accessible across a wide range of devices and platforms.

Rausch hinted at Amazon’s plans to further extend Alexa+ beyond residential settings in 2026, teasing the introduction of new “personal mobile devices” designed to enhance the portability and usability of Alexa+ throughout the day.