Amazon's privacy ultimatum: Give us your recordings or stop using Alexa An insight into latest settings update

Amazon has made significant changes to the privacy settings of its best-selling Alexa smart speakers, removing two key privacy features that previously allowed voice recordings to remain local. As of March 28, all voice recordings are being sent to Amazon’s cloud for processing and users that want to use all features of the voice assistant cannot opt out of this feature. While you can still choose not to save recordings, this will greatly limit it's service such as personalization features e.g Voice ID, which allows Alexa to recognize different users within a household. This change presents a difficult choice for users: maintain privacy or accept a less personalized experience.

Voice assistants like Alexa function by constantly listening for a “wake word” (e.g., “Alexa”). An article by the tech publication CNet has published a deep-dive into Amazon's privacy setting update, clarifying that when the voice assistant is activated, they record the spoken command and use natural language processing to determine the appropriate response. While voice assistants can process some commands locally, cloud-based processing offers more accuracy due to greater computational power. Previously, some high-end Echo models allowed users to opt out of cloud-based processing, but Amazon is now removing that option.

Amazon's latest update impacts two key Alexa privacy settings: "Do not send voice recordings" and "Do not save voice recordings," both buried within the Alexa app and Echo device settings.

As of March 28, the "Do not send voice recordings" option has been removed, meaning all voice commands are now automatically transmitted to Amazon for processing. Additionally, changes to the "Do not save voice recordings" setting will restrict certain Alexa features for users who choose not to store their recordings locally. Amazon sent an email notification to users explaining that those who do not manually adjust their settings will be automatically switched to the “Don’t save recordings” option. This means their voice recordings will still be sent to the cloud for processing but deleted afterward. However, enabling this setting disables Voice ID, preventing Alexa from distinguishing between users and offering personalized responses.

The article suggests that the timing of these changes is linked to Amazon's launch of Alexa Plus, an AI-powered subscription-based upgrade to the Alexa system. Alexa Plus will introduce advanced conversational capabilities and additional features, but it will also require more extensive voice data collection to function effectively. Even users who do not plan to subscribe to Alexa Plus will be affected by the new privacy settings, as Amazon is standardizing the cloud-processing model across all Alexa devices.

Amazon is under increasing pressure to turn Alexa into a profitable business. Since its launch, Amazon has sold over 500 million Alexa devices at low prices, effectively treating them as “loss leaders.” However, between 2017 and 2021, the company reportedly lost over $25 billion on the project. Now, Amazon is turning to generative AI and paid subscriptions to recoup its investment. In addition to making an $8 billion investment in OpenAI competitor Anthropic, Amazon is introducing a subscription model for Alexa Plus, which will cost $20 per month (or be free for Prime members).

Beyond subscription fees, Amazon sees Alexa Plus as a way to enhance its role as an intermediary between consumers and businesses. With AI-driven “agentic capabilities,” Alexa Plus can handle tasks such as booking flights or shopping on behalf of users. These capabilities require detailed user profiles, including purchase history and preferences. Voice ID plays a crucial role in personalizing these services, making it beneficial for Amazon to encourage users to keep their voice data stored.

Amazon’s recent privacy changes follow a $25 million fine from the US Federal Trade Commission (FTC) for illegally retaining children’s voice recordings. In response, the company has updated its privacy settings, which can be accessed through the Alexa app under “More > Alexa Privacy.” Users can review options in “Manage Your Alexa Data” to determine how long recordings are stored and whether to delete them via voice commands.

Ultimately, Alexa users must now decide whether they are comfortable with increased data collection in exchange for a more personalized AI experience. As Alexa Plus expands, users who opt out of cloud recording will lose key features, pushing them toward Amazon’s preferred model of voice-enabled, AI-driven commerce.

In a statement, Amazon justified the changes by saying, “As we continue to expand Alexa’s capabilities with generative AI features that rely on the processing power of Amazon’s secure cloud, we have decided to no longer support this feature.” This suggests that the company sees extensive voice data collection as essential for improving Alexa Plus. While Amazon claims that voice data is encrypted during transmission, it is likely decrypted for analysis once it reaches the cloud.

These changes mark a significant shift in how Alexa functions with the author pointing to important questions that have now been raised about consumer privacy. While Amazon is promoting AI-driven features, it is also forcing users to accept more data collection, making it clear that privacy now comes at the cost of convenience.

By Nazrin Sadigova