Amazon makes a U-turn in the U.S. and customers won't like the change at all

Amazon, the tech giant, keeps moving forward even in a challenging economic environment. Despite inflation, rising labor costs, and changes in consumer habits, Jeff Bezos's company continues to achieve solid results. However, not everything they've announced has been received with enthusiasm by their users.

In its latest earnings presentation, the company surprised with new plans that could drastically change its relationship with customers. Amazon has introduced Alexa+, its next-generation artificial intelligence assistant, and is considering including ads within the service. Although the idea aims to make the investment profitable, it has sparked rejection from many users.

Alexa+ expands… but with conditions

Alexa+, the enhanced virtual assistant with artificial intelligence, promises to keep conversations, teach, organize tasks, or make online purchases. Although its access is still limited, Amazon has offered it to millions of users through invitations. For now, it's free with select Echo Show devices and will also be free for Prime members.

However, for those who aren't Prime members, the cost will be $19.99 per month once it's officially launched, according to The Street. This has already raised doubts among some customers about whether it's worth paying for something that used to be free. In addition, during a call with investors, CEO Andy Jassy hinted at something more concerning: the arrival of ads within Alexa+.

Jassy explained that, as the assistant is used in longer conversations, opportunities will arise to integrate advertising. This measure is being considered as a way to generate revenue and recover part of the investment in devices, which accumulated more than $25 billion in losses between 2017 and 2021.

The risk of including ads in a personal assistant

Although digital advertising generates significant revenue for Amazon, introducing it in Alexa+ could prove counterproductive. Advertising already grew by 22% in the second quarter thanks to sponsored products, but moving it to such a personal environment as the virtual assistant could affect the experience.

According to a survey by Picnic and YouGov, 70% of people consider digital advertising annoying. In addition, 72% say it worsens brand perception and 71% claim it makes them less likely to buy. Social media reactions on platforms like Reddit have been harsh: some say they'll stop using their Echo devices if ads are implemented.

Currently, advertising on Alexa is very limited: it occasionally appears on screens or is heard between songs. However, many fear that this practice will expand with Alexa+, just as the service still has issues to solve. Criticisms include errors in responses, limitations in basic tasks, and unnatural voices.

Although it's not officially confirmed, everything indicates that Amazon will end up including ads in Alexa+ sooner rather than later. The question is whether this strategy will be profitable or, on the contrary, will end up driving away an important part of its users. As with other big names in AI, the balance between profitability and customer satisfaction will be key.