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How Amazon can turn around its failing Alexa business in 4 steps

Amazon's Alexa is unprofitable. Here's why and what the company can do about it.

Despite Alexa being in millions of households, it hasn't contributed meaningfully to the bottom line; the company has lost tens of billions of dollars in its devices business since 2017, according to internal documents obtained by and recently reported in the Wall Street Journal. By leveraging Amazon's LLMs in AWS and with guaranteed cloud resources, skills can be more robust and capable of handling complex interactions, reducing downtime, and improving user satisfaction. The company must establish clear guidelines and support for device manufacturers to ensure compatibility and quality and address privacy concerns by implementing robust data security measures and transparent policies, which will also be needed to build user trust.

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