Amazon is preparing to unveil its highly anticipated generative Artificial Intelligence (AI) voice service for Alexa, according to sources familiar with the developments. A press event has been scheduled for later this month to showcase the new features.
This launch will signify the most significant enhancement to Alexa since its debut, which catalyzed the rise of digital voice assistants over a decade ago.
On Wednesday, the company distributed press invitations for an event taking place on February 26 in New York City, featuring Panos Panay, the head of Amazon’s devices and services division. While a spokesperson confirmed that the event will focus on Alexa, they refrained from providing further details.
The AI-enhanced Alexa poses both a substantial opportunity and a considerable challenge for Amazon, which has over half a billion Alexa-enabled devices in circulation. The company aims to transform some of its vast user base into paying subscribers to improve the profitability of its voice assistant business.
The forthcoming AI functionality will allow Alexa to engage with users across multiple prompts and perform actions on their behalf without direct input. This marks a departure from the current model, which typically manages only one request at a time.
Amazon has scheduled an internal “Go/No-go” meeting for February 14 to make a final assessment regarding the readiness of its generative AI Alexa upgrade, as indicated by the sources and an internal planning document reviewed by Reuters.
The overhaul presents challenges common to generative AI, including the potential for fabricating responses, also known as hallucinations. With Alexa integrated into various devices such as cars, TVs, and smartphones, it could emerge as an essential tool for daily scheduling and shopping tasks.
Initially, Amazon plans to release the new Alexa features to a select group of users at no charge, although discussions about a monthly fee ranging from $5 to $10 have taken place. The company also intends to maintain access to the existing “Classic Alexa,” which is available to all users for free, although the introduction of new features for this version has been halted.
The Vision Behind Alexa
Despite Siri being introduced three years earlier than Alexa, the latter significantly drove the mainstream acceptance of voice assistants. However, many users now largely utilize Alexa for simple tasks like setting timers and checking the weather, due to minimal updates in recent years.
Alexa was conceived by Amazon founder Jeff Bezos, who envisioned a voice-activated assistant akin to those seen in “Star Trek.” The ultimate goal was for users to rely on Alexa for a multitude of everyday activities, such as managing lighting, preheating ovens, browsing the internet, playing music, sending emails, and hailing taxis.
“In the future—whether it takes years or decades—it could potentially answer any question you ask,” remarked Dave Limp, Amazon’s former chief of devices, nearly ten years ago.
However, the ambitious upgrade of Alexa has faced delays primarily due to concerns regarding the quality and speed of responses. The project has been internally referred to as “Banyan” and “Remarkable Alexa,” though it remains uncertain if either name will be adopted for the public launch.
In a recent interview with the Financial Times, Amazon executive Rohit Prasad acknowledged the challenges of developing what is essentially a new service, particularly the effort needed to minimize hallucinations.
Bank of America analysts estimate that Amazon could potentially earn $600 million annually if 10 percent of its estimated 100 million active user devices subscribe to the new service at a $5 monthly fee.
User-Centric Enhancements
The revamped Alexa will feature memory for customer preferences, enabling tailored music or restaurant recommendations. Additionally, users will be able to provide multiple prompts during a single interaction, allowing for modifications to requests before finalizing orders.
According to insiders, the new functionalities will be compatible with existing Alexa devices.
Amazon is expected to leverage AI technology from startup Anthropic, in which it has invested $8 billion, to enhance the Alexa experience, according to sources familiar with the plans.
In September 2023, Amazon showcased an early version of the upgraded Alexa. However, concerns regarding quality led to repeated delays in its launch, preventing that version from reaching the public.
© Thomson Reuters 2025
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