Amazon CEO Andy Jassy sees an opportunity to deliver ads to users during their conversations with the company’s AI-powered digital assistant, Alexa+. He shared this vision during Amazon’s second-quarter earnings call.
Jassy highlighted the excitement around Alexa+-enabled devices and the shopping experience they offer. He noted that as users engage in more multi-turn conversations with Alexa+, advertising could play a role in product discovery and revenue generation.
Amazon has rolled out Alexa+ to millions of customers, aiming to enhance its digital assistant with more natural, agentic behaviors. Alexa+ is Amazon’s response to generative AI voice assistants from competitors like OpenAI, Google, and Perplexity, which have made older systems seem outdated. However, the business models for these AI products remain uncertain.
Currently, Alexa+ is free for Prime members, who pay $14.99 a month, while a standalone $20-a-month subscription tier is also available. Jassy hinted at the possibility of additional subscription options in the future, including an ad-free tier.
Ads on Alexa have so far been limited—appearing as visuals on Echo Show or as pre-recorded messages between songs on smart speakers. Jassy’s vision of AI-generated ads within multi-step conversations is new territory for Amazon and the tech industry. Marketers have expressed interest in advertising through Alexa+, but the specifics are still unclear.
Other AI companies are also exploring advertising as a revenue model. Google is testing ads in its AI-powered search experience, while OpenAI’s CEO Sam Altman has mentioned openness to tasteful advertising in ChatGPT.
Amazon is investing heavily in AI, with capital expenditures reaching $31.4 billion in the second quarter of 2025—a 90% increase from the previous year. Much of this spending goes toward developing in-house AI chips and expanding data centers. While AWS revenue grew 18%, Amazon likely needs new revenue streams to justify these investments.
Jassy believes increased engagement with Alexa+ could drive more advertising and shopping on Amazon. However, early reviews of Alexa+ have been mixed. Amazon has faced challenges in rolling out advanced features, and adoption has been slower than expected.
Before introducing ads, Amazon must address concerns like AI hallucinations and false advertising. Additionally, privacy issues may arise, as generative AI chatbots collect more user data than traditional assistants. Some users may be uncomfortable with ads appearing in their natural conversations with AI.