[HN Gopher] Amazon's Alexa on Track to Lose $10B This Year
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       Amazon's Alexa on Track to Lose $10B This Year
        
       Author : PaulHoule
       Score  : 25 points
       Date   : 2022-11-21 20:26 UTC (2 hours ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | belval wrote:
       | Sample size of 1, but I use HomeAssistant a lot more than I ever
       | used Alexa/Google Home. The voice interface might be interesting
       | for the next generation, but having grown with
       | computer/smartphones it just feels more natural to flip a switch
       | or to start a timer on my phone by clicking than just uttering
       | "Alexa turn on the coffee machine".
       | 
       | I see the value of a smart home, I just don't think Alexa is the
       | best interface for it when we all carry a perfect little tablet
       | that has every switch/cameras on it.
        
         | PaulHoule wrote:
         | I like having an Echo on the shelf next to the sink to listen
         | to music while doing the dishes so I don't have to touch
         | anything with my wet hands.
         | 
         | On the other hand I can just set an album going and not have to
         | touch anything for 50 minutes.
        
       | dougmwne wrote:
       | I thought this was a great moment to take stock of these voice
       | assistants and do a postmortem on why the platform failed to live
       | up to expectations. Something telling from the article is that
       | Alexa is used to play music and check the weather and not much
       | else, no matter how hard the division tries to get people to
       | order Ubers or toothpaste.
       | 
       | I have been wondering if a next gen "GTP-4" like language model
       | could take these AI assistants from being jukeboxes to actual
       | assistants.
        
         | koyote wrote:
         | I feel like there are just not many truly game changing use-
         | cases for a voice-activated assistant.
         | 
         | They only ever seem to be useful if you do not have free hands
         | (e.g. cooking) which is why they are almost exclusively used as
         | timers (at least in my household). I have tried getting it to
         | read a recipe but that's just cumbersome (I often want to have
         | a quick glance at ingredients, not have someone list all of
         | them in slow succession).
         | 
         | Other actions such as "play stranger things on netflix" seem
         | like useful actions at first, but again only really make sense
         | if you are truly busy with your hands (which you would not be
         | if you are on the couch with the remote near-by). Using the
         | remote to turn on the tv and play something on netflix is often
         | not more than two or three button presses (assuming the show is
         | in your 'continue watching' list, which it usually is if it's
         | something you specifically want to watch).
         | 
         | And turning on lights? Again, a novelty. Unless your house is
         | designed in a weird way where your light switches are on
         | opposite ends of the room you are walking into, it's always
         | faster to just flip the switch when walking into the room than
         | shouting out and waiting for your assistant to do it for you
         | (never mind the fact that shouting to turn on the lights during
         | a bathroom run at night would be highly annoying to other
         | household members).
        
         | PaulHoule wrote:
         | Some of the problem is not the A.I. technology but the model of
         | the user interface. The model of Alexa is
         | [voice input] -> [action]
         | 
         | but to do more complex interactions it has to be more like
         | [input 1] -> [ask for clarification] -> [input 2] -> [propose
         | action, ask for confirmation ] -> [action]
         | 
         | from the viewpoint of developing a training set this is
         | exponentially more complicated. Maybe it is like playing chess
         | or learning Atari games by reinforcement learning, but those
         | games involve a small number of elements that combine in
         | complex ways, whereas a conversation involves a space of
         | millions of concepts. (e.g. "20 questions")
         | 
         | It's not so much that they need any specific feature ("buy
         | toothpaste") that they need some way to recover the cost, for
         | instance being more tied to the Amazon ecosystem, more likely
         | to subscribe to Prime, etc.
         | 
         | It's not easy though. With roughly 70 million users they would
         | need to generate about $150 a user in profit to cover $10
         | billion. At 2% margin they'd need to sell $7500 worth of stuff
         | that they wouldn't otherwise sell.
         | 
         | What I don't get is where the $10 billion went: how much of it
         | subsidizing the device? (If they sold 10 million devices last
         | year it would be a $1000 subsidy which is incredible.) are they
         | paying AWS prices to run the backend service? how much are they
         | spending in software development, model training, etc?
        
           | cscharenberg wrote:
           | And in those more complex interactions there is not enough
           | adjustment capability. I often want Alexa to speak faster or
           | just shorter (reduce filler words and pauses). There's no way
           | (I am aware of) to make it more efficient for the determined
           | user.
        
           | otikik wrote:
           | > [input 1] -> [ask for clarification] -> [input 2] ->
           | [propose action, ask for confirmation ] -> [action]
           | 
           | Don't forget that between all those steps there's a "store
           | everything you say in order to sell you stuff later" step
        
       | fnordpiglet wrote:
       | Clearly Elon Musk should buy Amazon.
        
       | pxtail wrote:
       | Voice assistants are just too unsophisticated, lacking required
       | context. Recently during a drive I decided to give the Google
       | Assistant another try - Google Maps was being utilized as the
       | navigation but screen was too bright for my liking - it was not
       | possible to accomplish this with voice only, yes, screen got
       | dimmed but in the process nav got into this small floating window
       | mode and no possible voice command was able to restore it to
       | fullscreen - maximize, enlarge, open, fullscreen, fullsize -
       | nope. I was disappointed, such simple, basic yet usefull use case
       | but it just didn't work
        
       | [deleted]
        
       | antoniuschan99 wrote:
       | Does the loss include Amazons entire IoT lineup?
       | 
       | The Thermostat, Air Purifier also seem like loss leaders. There
       | was like 20-30 devices that were introduced a year or two ago
       | which also included a microwave.
       | 
       | Especially the thermostat, it was a joint development with
       | Honeywell and is like 1/2 the cost of other Smart Thermostats.
       | 
       | When I had an Echo it was only used to set alarms :$
       | 
       | Also, last time I checked for the Air Purifier, you had to do ~5
       | taps to get to the Air Purifier Data.
        
       | darepublic wrote:
       | I see voice assistant being useful when trying to get stuff done
       | while driving or otherwise occupied. And I want to be able to
       | speak with it interactively much as I would another person. Being
       | able to spin up new tasks and have it appropriately begin them
       | and query for needed info or on blockers like a person would
        
       | SilverBirch wrote:
       | There's this really interesting dynamic here, I would never buy
       | an Alexa- why? Because it's an Amazon machine in your home
       | optimized to bankrupt you. We all kind of know it, the aim is for
       | Alexa to figure out ways to monetize you. But having said that, a
       | smart speaker should make money! It's a bit of low margin
       | consumer tech, massive volume. The only way you lose money on
       | that is by.... hiring a load of AI engineers to figure out how to
       | exploit your customers. It's also kind of funny, you sold all
       | these devices at cost.... but why? Apple's homepod sucks, and you
       | (hope) you're clearly differentiated against Google. So why not
       | actually just make money selling it.
       | 
       | I'm just mad once again, that I didn't get the benefit of venture
       | subsidized consumer products.
        
       | TurkishPoptart wrote:
       | Good. Was never a fan of domestic surveillance technologies for
       | our "convenience".
        
       | nelsonenzo wrote:
       | dang, that's a big gap. It makes meta's losses seem much more
       | palatable.
        
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       (page generated 2022-11-21 23:02 UTC)