AI Ads on Alexa+ -- Amazon Proving AI is a Bad Idea

Eli the Computer Guy critiques Amazon’s plan to embed ads into Alexa Plus, arguing that monetizing AI assistants through advertising risks degrading user experience and trust, especially as similar AI services are already widely available. He highlights the broader industry trend of “adification” in AI products driven by financial pressures, urging viewers to consider the implications of commercializing AI through intrusive advertising.

In this video, Eli the Computer Guy explores the evolving nature of advertising in the age of artificial intelligence, particularly focusing on Amazon’s Alexa Plus. He begins by reflecting on how advertising has historically adapted to new media formats, such as toy companies creating cartoons to market action figures in the 1980s, and how influencers today blur the lines between genuine recommendations and paid promotions. This sets the stage for the central question: as AI becomes more integrated into daily interactions, how will advertising manifest, and will users even recognize when they are being advertised to?

Eli highlights the recent news that Amazon is considering embedding ads into Alexa Plus, its AI-powered voice assistant. Alexa Plus, still in early access, aims to be a more conversational and capable assistant, potentially handling tasks like booking reservations, ordering groceries, and recommending content. However, Amazon has invested heavily—around $25 billion over four years—into this product without yet achieving profitability. The introduction of ads is seen as a strategy to monetize the service, with Amazon’s CEO suggesting that ads could help users discover relevant products while also driving revenue.

The video questions the user experience implications of native AI advertising, where AI responses might subtly include brand names or product suggestions influenced by advertising deals rather than user preferences. Eli expresses skepticism about the appeal of Alexa Plus, noting that many users already have access to similar services through other platforms and may not be willing to pay extra for Amazon’s offering. He also points out that ads in voice assistants, such as those already present on Echo devices, could potentially alienate users rather than enhance their experience.

Eli compares Alexa Plus to other AI services like ChatGPT, which he personally values for its advanced features and creative capabilities, and questions whether Alexa Plus can compete in a crowded market. He doubts that users will pay additional fees for Alexa Plus, especially if it becomes ad-supported, which might degrade the user experience. The video suggests that the AI industry is facing financial pressures, leading to what Eli calls “adification,” where advertising is increasingly inserted into AI products as a revenue solution, despite potential downsides.

In conclusion, Eli invites viewers to reflect on the future of AI and advertising, expressing concern about the sustainability and user acceptance of ad-supported AI assistants. He encourages engagement and discussion about these developments and promotes upcoming events on silicondojo.com, where industry experts will discuss AI integration and advancements. The video serves as a thoughtful critique of the commercialization challenges facing AI technologies and the impact of advertising on user trust and experience.