The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has called on Nigerians to remain patient as the country grapples with inflation and rising food prices. 

Speaking at a press briefing following the Monetary Policy Committee (MPC) meeting in Abuja, Cardoso explained that combating inflation is a gradual process that requires time and perseverance.

“There is no magic wand,” Cardoso remarked, stressing the need for patience. “These are things that need to take their time. I am pleased and confident that we are beginning to get some relief, and in another couple of months, we will see more positive outcomes from what the Central Bank has been doing.”

Despite the pressures from food inflation, Cardoso noted that the general inflation rate was showing signs of moderation. He highlighted that the tools employed by the CBN are starting to yield results. 

“The tools the Central Bank is using are working,” he stated, expressing optimism about the future.

Cardoso also detailed the challenges that continue to hamper efforts to curb food inflation, including the high costs of transporting farm produce, infrastructural issues within the distribution network, security challenges in food-producing areas, and the impact of exchange rate fluctuations on the prices of imported food items.

“The committee thus reiterated several challenges confronting the effective moderation of food inflation,” Cardoso said. “These include rising costs of transportation of farm produce, infrastructure-related constraints along the line of distribution network, security challenges in some food-producing areas, and exchange rate pass-through to domestic prices for imported food items.”

Additionally, the CBN attributed the recent volatility in Nigeria’s foreign exchange market to seasonal demand for dollars. The MPC’s communique pointed out that the fluctuations are reflective of the dynamics of demand and supply in a freely functioning market system. 

“Members further observed the recent volatility in the foreign exchange market, attributing this to seasonal demand,” the communique stated.

The CBN has implemented several measures to control inflation, including monetary tightening policies such as cutting the number of Bureau de Change (BDC) operators from 4,173 to about 1,518 and clamping down on the cryptocurrency market, aimed at curbing speculation. However, these efforts have faced significant obstacles, including the structural challenges outlined by Cardoso.

Experts’ Opinions on Tackling Inflation

Economic experts suggest that while the CBN’s monetary policies are necessary, they are not sufficient on their own to combat inflation effectively. They advocate for a more comprehensive approach that addresses both supply-side and demand-side factors.

Kalu Aja, a prominent financial analyst, has emphasized the need for structural reforms alongside monetary policy. “The CBN cannot fight inflation alone. There must be a concerted effort to improve infrastructure, especially in the agricultural sector, to reduce the costs of food production and distribution. This will have a more lasting impact on inflation,” Aja stated.

Others have argued that the government must invest in improving infrastructure and security in agricultural regions to enhance food production and distribution. They note that without addressing the root causes of food inflation, such as poor infrastructure and insecurity, monetary policies alone will not suffice.

However, the call for patience from the CBN governor is believed to be an indication of cluelessness by many, who hold the belief that one year is enough for the government to turn the inflation tide. Against this backdrop, there is a growing consensus with the view that addressing the underlying structural problems remains critical for achieving long-term stability and growth.

Amazon is set to revamp its decade-old Alexa voice assistant with advanced generative artificial intelligence (AI) technology and plans to introduce a monthly subscription fee to offset the costs, according to sources familiar with the company’s plans. 

The upgrade aims to enhance Alexa’s conversational abilities, positioning it to better compete with new AI-powered chatbots from companies like Google and OpenAI.

The enhanced Alexa, expected to launch later this year, will feature more natural and human-like interactions. This upgrade is seen as a response to recent advancements in AI technology by competitors. Last week, OpenAI announced GPT-4o, which supports deep, two-way conversations and real-time language translation. Similarly, Google launched a generative AI-powered voice feature for its Gemini platform.

Amazon’s new subscription for Alexa will be separate from its $139-per-year Prime offering, and the company has yet to finalize the price point, one source noted. The move to a subscription model reflects the significant costs associated with generative AI technology. One source estimated the cost of using generative AI in Alexa at approximately 2 cents per query, suggesting an internal discussion around a $20 monthly fee. However, others argue for a single-digit price to remain competitive against offerings like OpenAI’s ChatGPT, which charges $20 per month.

Alexa’s Back Story and Internal Challenges

Alexa, launched in 2014, initially wowed consumers with its voice-driven capabilities. However, its functions have become outdated in light of recent AI developments. Scott Galloway, a professor at NYU, recently described new AI updates as “Alexa and Siri killers” on his podcast, highlighting the pressure on Amazon’s voice assistant to innovate.

According to sources, Alexa was a passion project of Amazon founder Jeff Bezos, who invested heavily in its development with less immediate pressure for profitability. This dynamic shifted when Andy Jassy became CEO in 2021. Jassy, focused on optimizing Amazon’s business operations during the pandemic, placed stricter profit imperatives on the Alexa division. Internally, there was concern that Alexa had devolved into an expensive device for basic tasks like setting alarms and checking the weather.

A person familiar with Jassy’s views shared an incident where he asked Alexa for the live score of a sports game and was frustrated when the assistant failed to provide an answer easily found online. This exemplifies the internal and external pressures on Amazon to enhance Alexa’s capabilities.

To address these challenges, Amazon has undergone a significant reorganization of the Alexa team, shifting many members to the artificial general intelligence (AGI) team. This move aims to leverage Alexa’s substantial user base, with over 500 million Alexa-enabled devices sold as of 2023.

Amazon’s annual shareholder letter, released last month, highlights the company’s commitment to integrating generative AI across its consumer businesses, including Alexa. The letter states, “We are building a substantial number of GenAI applications across every Amazon consumer business, including an even more intelligent and capable Alexa.”

Expert Insights and Market Position

Despite the challenges, industry experts see potential in Alexa’s large installed user base. Transforming Alexa into a more relevant and advanced AI device could justify the resources dedicated to it. However, attracting top AI engineering talent remains a challenge, as companies like OpenAI, Microsoft, and Google compete for the same pool of experts.

Amazon has been perceived as lagging in AI innovation, despite offering multiple AI models on Amazon Web Services (AWS). To boost its AI capabilities, Amazon invested $2.75 billion in AI startup Anthropic, its largest venture investment to date. Amazon plans to use its own large language model, Titan, in the Alexa upgrade.

Bezos remains actively involved in Amazon’s AI efforts, reportedly expressing concern over Amazon’s position in the AI race. Bezos has been questioning why certain AI startups prefer other cloud providers over AWS, according to sources.

Amazon’s decision to upgrade Alexa with generative AI and introduce a subscription fee marks a significant shift in its strategy for the voice assistant. With the e-commerce’s substantial user base and growing investments in AI technology, this shift is expected to transform Alexa into a more capable and intelligent assistant. 

“Alexa, let’s try AI.” Amazon is adding generative artificial intelligence to its 10-year-old voice assistant — and the upgrade will be accompanied by a monthly subscription fee, CNBC reports, citing anonymous sources. The “more conversational” Alexa is set to debut later this year and help the e-commerce giant better compete with new chatbots from Google and OpenAI, which some have called “Alexa and Siri killers.” Many users rely on Alexa for basic duties such as setting timers; recently, the Alexa team has worried that they invented “an expensive alarm clock,” one source says.