Amazon’s $100B AI bet stumbles as Alexa Plus disappoints users

Amazon’s AI-powered Alexa Plus has launched with significant performance issues, including slow response times of up to 15 seconds and persistent hallucination problems that undermine its reliability for smart home control. The upgrade represents Amazon’s attempt to compete with ChatGPT-like conversational AI, but early reviews reveal the technology isn’t ready for the predictable, instant responses users expect from home automation systems.

Key performance issues: The new Alexa Plus struggles with basic functionality that users have come to expect from smart assistants.

• Simple requests like checking the weather can take over 10 seconds, compared to instantly accessing smartphone apps.
• Complex smart home commands often require up to 15 seconds for responses, creating frustrating delays.
• The system runs on underpowered hardware that limits its accessibility and performance.

Hallucination problems persist: AI-generated misinformation creates real-world consequences for smart home control and daily tasks.

• Alexa Plus provided completely incorrect pricing for Dollywood theme park tickets, claiming $42 per day when the actual cost was $122 for a two-day pass.
• The assistant failed to control a bathroom fan despite being connected to smart home systems.
• During recipe assistance, it “gaslighted” users when asked for clarification and claimed it “can’t actually make coffee” despite being connected to a smart Bosch coffee maker.

What experts are saying: Industry observers emphasize the fundamental mismatch between large language models and smart home requirements.

• “LLMs aren’t designed to be predictable, and what you want when controlling your home is predictability,” noted The Verge’s Jennifer Pattison Tuohy after testing the system.
• Amazon AI team lead Rohit Prasad acknowledged in January that “hallucinations have to be close to zero” before the feature could properly launch.

Commercial priorities remain prominent: Amazon continues prioritizing sales opportunities even within the AI assistant experience.

• The device “constantly invites you to spend money with Amazon,” according to tech journalist Casey Newton.
• When asked about its capabilities, Alexa Plus offered to “explore Gen Z music trends” only to advertise Amazon Music subscription services.

Basic functionality compromised: Core features that users rely on daily have become unreliable with the AI upgrade.

• Users report losing the “ability to reliably set and cancel alarms,” a fundamental smart assistant function.
• Commands that previously worked thousands of times, like “Alexa, cancel the alarm,” now result in complete silence.

The big picture: Amazon plans to spend over $100 billion this year on cloud computing and AI infrastructure, but the flagship smart home assistant’s poor performance raises questions about whether massive AI investments are translating into consumer value.