Amazon is exploring a new way to deliver ads through conversations with its AI assistant, Alexa+.
CEO Andy Jassy shared this during the company’s second-quarter earnings call.
He explained that conversational advertising could drive product discovery while opening new revenue streams.
In practice, the digital assistant could soon recommend products as part of natural, multi-step discussions.
Alexa+
Alexa+ is Amazon’s upgraded version of its legacy assistant, Alexa. It uses generative AI to hold longer, more natural conversations.
Alexa+ can follow context and respond intelligently over multiple exchanges, unlike the older version.
The assistant is already available to millions of users. Prime members receive it at no additional cost.
Others can subscribe for $20 per month. Jassy hinted at more pricing tiers in the future, possibly including an ad-free version.
For now, ads on Alexa remain limited. Some appear on Echo Show displays or as brief audio clips between songs.
What Jassy proposed, however, is more advanced. He described a future where Alexa+ could deliver AI-generated ads mid-conversation.
Amazon’s AI Strategy
In Q2 2025, its capital expenditures reached $31.4 billion. That’s a 90% increase year over year.
Much of this spending goes toward building in-house AI chips and expanding data centers.
These investments support tools like Alexa+ and grow Amazon Web Services (AWS), whose revenue rose 18% this quarter.
Still, there’s a need for funding to fuel its AI expansion. And conversational ads could help bridge that gap.
Advertising already plays a major role in Amazon’s earnings. Revenue from its ad business rose 22% this quarter. Adding ads to Alexa+ could boost this even further.
Growing Interest
Amazon is not alone; Google is testing ad placements in its AI-powered search, and OpenAI has also expressed openness to “tasteful” ads in ChatGPT.
Many tech firms are looking to advertising as a key revenue stream for AI.
Marketers see potential in voice-based AI assistants like Alexa+ that offer more personal and extended interactions.
These could allow brands to deliver more targeted and persuasive messages. However, the format is experimental.
There is little precedent for advertising through real-time AI conversation. Companies will need to ensure the experience feels natural and non-intrusive.
Challenges
Amazon must address key challenges before pushing ads through Alexa+. The first is accuracy; like other generative AI models, Alexa+ can produce false or misleading responses.
The second is privacy. Users often share personal details with AI assistants, revealing sensitive data. This has ethical and legal concerns.
