Amazon CEO Andy Jassy announced during the Q2 2025 earnings call that the company plans to introduce ads within conversations on its AI assistant, Alexa+. This new advertising format will involve AI-generated ads embedded in multi-turn interactions.
Alexa+ has already been rolled out to millions of users and is available for free to Prime members, with a $20 monthly standalone subscription tier. Amazon may add more subscription options in the future, including possibly an ad-free tier.
Currently, ads on Alexa are limited to occasional visual ads on smart displays and pre-recorded audio ads. The proposed in-conversation ads mark a new approach for Amazon and the broader tech industry.
Amazon’s competitors like Google and OpenAI are also exploring ways to include advertising in their generative AI products. This move comes as Amazon’s capital expenditures soared by 90% year-over-year to $31.4 billion, highlighting the need for new revenue streams.
However, technical challenges remain, including preventing AI hallucinations and addressing privacy concerns. Users may be uneasy about data collection and ads appearing naturally during their AI conversations.
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