Amazon is considering a new strategy to monetise its AI-powered voice assistant, Alexa+, by incorporating advertisements directly into user conversations, CEO Andy Jassy disclosed during the company’s second-quarter earnings call. In conversations with investors and analysts, Jassy highlighted the increasing enthusiasm for Alexa-enabled devices, describing voice-based shopping as a "delightful" experience that will improve over time. He hinted at future opportunities to introduce advertising in multi-turn, conversational interactions with Alexa+, describing it both as a discovery tool and a revenue lever.

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Alexa+ Pushes Boundaries in Voice AI

Alexa+ is Amazon’s next-gen take on its legacy assistant, now infused with generative AI capabilities that make it more natural and dynamic to talk to. It’s designed to rival AI agents from Google, OpenAI, and Perplexity, all of which are transforming how users interact with machines. According to Amazon, millions of customers now use Alexa+, which is available for free to Prime members and also offered via a standalone subscription at $20 per month.

Jassy also hinted that more pricing tiers could be introduced, including the possibility of an ad-free version. For now, advertising within Alexa has been minimal—typically limited to the Echo Show’s visual ads or audio interludes between music tracks.

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Voice Ads in Conversations: A First for Big Tech

What Jassy described—dynamic, AI-generated ads delivered mid-conversation—represents uncharted territory for Amazon and the wider tech industry. Marketers are already showing interest in embedding ads into chatbot interactions, and Alexa+ could become a pioneering platform in this space. But exactly how such advertising would work remains unclear. Amazon’s competitors are exploring similar ideas. Google is experimenting with ad integrations in its AI-powered search experience, while OpenAI CEO Sam Altman has suggested that “tasteful” ads might eventually have a place in ChatGPT.

Monetising the AI Race

Amazon’s interest in AI-driven advertising comes at a time of heavy investment in generative AI infrastructure. In the second quarter of 2025 alone, the company’s capital expenditure surged to $31.4 billion—nearly double that of the same period last year. A significant portion of that spending is going into custom AI chips and expanded data centres to power its models.

While AWS—Amazon’s cloud division—posted 18 percent year-over-year revenue growth in Q2, the company still needs new revenue streams to offset its rising AI costs. Voice commerce and AI advertising may be one of the answers.

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Will Users Accept Ads from Alexa+?

Jassy’s bet is that users will engage more deeply with Alexa+ than with traditional Alexa, opening the door to longer conversations, more shopping, and yes—more targeted ads. However, early reviews of Alexa+ have been mixed. The rollout has reportedly been slower than expected, with some complex features yet to be delivered.

There are also key challenges to solve before rolling out voice ads. Like most generative AI models, Alexa+ is prone to hallucinations—or generating incorrect or misleading information. That raises the stakes for any advertising integration, especially if Alexa+ ends up recommending products that turn out to be inaccurately described.

Privacy Questions Linger

Introducing advertising into generative AI conversations could also spark privacy concerns. Unlike traditional voice assistants, AI chatbots like Alexa+ tend to capture more user data through their detailed, human-like dialogues. Users might hesitate at the idea of their conversational data being used for targeted advertising or monetised without clear boundaries.

Despite these potential pitfalls, Amazon’s advertising business is already showing momentum, growing 22 percent year-over-year in Q2. For Jassy, tapping into the ad potential of Alexa+ is just the beginning of a broader strategy to blend AI innovation with business growth.