Amazon is preparing to introduce a more advanced version of Alexa, integrating artificial intelligence to enhance user interactions.
The company has scheduled an event on February 26 in New York, where Panos Panay, Amazon’s head of devices and services, will preview the upgrade.
This marks one of the most significant updates since Alexa’s launch over a decade ago. The new version is expected to support extended conversations and execute tasks on behalf of users, making it a more interactive assistant.
Currently, Alexa responds to single commands, but the upgrade will allow it to handle multi-step prompts, creating a smoother experience.
A crucial internal meeting on February 14, known as the “Go/No-go” session, will determine if the update is ready for release. If approved, the service will be rolled out for free to select users, though Amazon is considering a $5 to $10 monthly subscription.
Meanwhile, “Classic Alexa” will remain free, but Amazon has halted new feature development for it.
While Alexa was initially a breakthrough in voice assistant technology, its functionality has remained mostly unchanged in recent years, with most users relying on it for basic tasks like setting timers and checking the weather.
This upgrade aims to modernise Alexa using AI to personalise responses, refine recommendations, and assist with actions, such as modifying food orders before finalisation.
Development has faced delays due to accuracy and speed issues. Internally, the project has been codenamed “Banyan” and “Remarkable Alexa”, though the final name remains unknown.
The new Alexa will be compatible with over 500 million Alexa-enabled devices and will utilise AI technology from Anthropic, a startup backed by Amazon’s $8 billion investment.
In a January interview with the Financial Times, Amazon executive Rohit Prasad acknowledged the challenge of reducing AI hallucinations, a common issue in AI-driven models.
According to Bank of America, if 10% of Alexa’s estimated 100 million active users subscribe at $5 per month, Amazon could generate $600 million annually.
Originally envisioned by Jeff Bezos as a sci-fi-inspired voice assistant, the new upgrade aims to bring Alexa closer to that vision, making it an essential everyday tool.
Credit: TechEconomy (Text Excluding Headline)
