Amazon Acquires AI Wearables Firm Bee
In a move to bolster its AI ecosystem and subscription revenue streams, Amazon has announced its acquisition of AI wearables company Bee. The deal, which is yet to be finalized, was first revealed via Bee's website and a social media post from co-founder Maria de Lourdes Zollo.
The acquisition of Bee, known for its $50 wristband that records, transcribes, and provides feedback on conversations, marks Amazon's renewed interest in the wearables market. The Bee wristband uses AI to create personalized to-do lists, chat summaries, and searchable histories, providing Amazon with a unique and continuous stream of user data.
Amazon CEO Andy Jassy has expressed a focus on growing recurring subscription revenue, and the acquisition aligns well with this strategy. Bee's current subscription model requires a $19 monthly fee, which Amazon may look to scale as part of its integration plans. All Bee employees have been offered roles within Amazon, but the number of acceptances has not been disclosed.
Amazon's acquisition of Bee presents two potential strategic pathways. The first is to continue marketing the Bee wearable as a standalone subscription device. The second is to incorporate Bee's AI capabilities into other Amazon products and services to enhance AI personalization and customer engagement. This approach mirrors Amazon's previous wearables attempt with the Halo band and industry trends where AI wearables collect data in exchange for convenience.
The acquisition of Bee follows Amazon CEO Andy Jassy's warning to employees about potential workforce reductions due to AI. However, the company's relatively high consumer trust in data privacy (59% of US adults trust Amazon with personal data) may support consumer acceptance of this always-listening device.
The financial details of the acquisition have not been disclosed. In its most recent quarter, Amazon's subscription revenue rose 9% to $11.7 billion, indicating a growing focus on recurring revenue, particularly from subscriptions. The plans for Bee's wristband and subscription service are likely to gain momentum under Amazon's ownership, repositioning the tech giant as a key player in the AI wearables market.
A spokesperson for Amazon declined to provide the number of Bee employees who accepted the offer, and the deal is signed but yet to close. As the acquisition progresses, more details about Amazon's plans for Bee are expected to emerge.
[1] https://www.bee.com/ [2] https://www.cnbc.com/2022/05/26/amazon-ceo-andy-jassy-discusses-alexa-the-upgraded-ai-of-amazons-alexa-virtual-assistant.html [3] https://www.reuters.com/business/retail-consumer/amazon-to-cut-jobs-in-north-america-retail-bookselling-businesses-2022-05-18/ [4] https://www.theverge.com/2022/5/18/23088316/amazon-layoffs-2022-north-america-retail-bookselling-businesses-ceo-andy-jassy
- The acquisition of Bee by Amazon, a company known for its focus on artificial intelligence and technology, highlights their renewed interest in the AI wearables market, as the Bee wristband uses AI for various functions.
- In line with Amazon's strategy of growing recurring subscription revenue, the acquisition of Bee, whose current subscription model requires a monthly fee of $19, could potentially be scaled and integrated into Amazon's offerings.
- Amazon's acquisition of Bee presents two potential strategic pathways: either marketing the Bee wearable as a standalone subscription device or incorporating Bee's AI capabilities into other Amazon products to enhance AI personalization and customer engagement.
- The financial details of the acquisition between Amazon and Bee have not been disclosed, but this deal, coming on the heels of Amazon's warning about potential workforce reductions due to AI, may suggest a growing focus on AI and wearable technology in Amazon's business strategy.
