At the latest earnings call, Amazon CEO Andy Jassy revealed that the company is exploring the possibility of embedding advertisements in its latest AI assistant, Alexa+. He mentioned that as users engage in deeper conversations with Alexa+, ads could help consumers discover new products and create a new revenue stream for Amazon.
Alexa+ is Amazon's upgrade to traditional voice assistants, aiming to provide a more natural and human-like interaction experience. Jassy mentioned that users have responded positively to devices with Alexa+ features, with many using Alexa+ for shopping. He believes that as the number of multi-turn conversations increases, embedding ads could become a potential business opportunity.
Currently, the way ads are displayed in Alexa is still relatively limited, mainly through visual ads on Echo Show smart displays or pre-recorded ads during music playback. However, the AI-generated ads described by Jassy are a novel concept in the industry. Although marketers have shown strong interest in advertising within AI chat assistants, specific implementation plans still need further exploration.
Similar to Amazon, other tech giants are also seeking business models for AI advertising. Google is researching how to integrate ads into its AI-driven search experience, while Sam Altman, CEO of OpenAI, has expressed openness to trying "appropriate" ads in ChatGPT.
To keep up with the AI race, Amazon has invested heavily in artificial intelligence. In the second quarter of 2025, Amazon's capital expenditures reached $31.4 billion, an increase of 90% year-over-year. This investment is primarily used to develop internal AI chips and build data centers to support more complex AI models. Although Amazon Web Services (AWS), the company's cloud business, saw an 18% increase in revenue, the company still needs to find new business models to support these expenses.
Jassy is confident about the frequency of users' use of Alexa+, which could drive more ad displays and shopping activities on Amazon's website. However, early reviews of Alexa+ have been mixed, and Amazon has encountered difficulties in launching some complex features, leading to slower progress.
Before ads fully enter Alexa+, Amazon needs to solve several technical issues, including avoiding the phenomenon of AI "hallucinations" and ensuring the accuracy of ad information. Additionally, as users engage in deeper conversations with AI assistants, they may have concerns about the collection and use of personal information. After all, no one wants their conversation records to be sold for advertising purposes.
