Thematic Spotlight: Amazon’s Alexa Is Becoming Intelligent

Last week, Amazon Inc. announced a major upgrade to Alexa, its 10-year-old voice-activated assistant. The new iteration, now called Alexa+, is an AI-powered evolution of the original, designed to go beyond basic commands and become a more integrated part of users’ daily lives.1 Rolling out next month, Alexa+ will cost $19.99 per month, though Amazon Prime members will receive access for free.2

This launch marks Amazon’s most significant attempt yet to make AI a household staple. Despite Alexa’s early success, its promise faded as users realised its limitations, relying on it mainly for timers, weather updates, and trivia questions. Meanwhile, AI-driven chatbots like ChatGPT have stolen the spotlight, demonstrating more dynamic, conversational capabilities and broader everyday applications. Once the leader in the smart assistant space, Amazon is clearly playing catch-up, aiming to make Alexa+ more useful and proactive in daily tasks.

That is perhaps why Amazon will also launch new AI-powered companion devices this fall to further integrate Alexa into homes.3 The company envisions Alexa+ as more than just a smart speaker feature, instead positioning it as an everyday AI companion—capable of managing home appliances, booking tickets, making reservations, and even monitoring home security footage.4

How consumers react to Alexa+ and its AI-powered ecosystem will be a key test for mainstream AI adoption. Unlike chatbots, which users engage with online or through an app, Alexa+ offers an ambient AI experience—always present, always listening, and designed to anticipate user needs. If widely adopted, it could push AI from novelty to necessity, reshaping how people interact with technology in their homes. The big question now is whether consumers are ready to trust AI assistants with a greater role in their daily lives.

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Forecasts are not guaranteed and undue reliance should not be placed on them. This information is based on views held by Global X as at  04/03/2025. Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss.

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This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalised investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.