Amazon is set to unveil a next-generation, AI-powered version of its Alexa voice assistant on February 26, according to multiple reports. The upgraded Alexa, which aims to handle multiple sequential commands and act as a user “agent,” marks the most significant update since the assistant’s debut over a decade ago.
Agentic future is near…
The revamped Alexa will be capable of responding to multiple prompts in sequence, contrasting with the current version that typically handles only one request at a time. Executives have described the new system as an “agent” that can take actions on behalf of users without direct involvement. However, development challenges have plagued the project, including issues like setting timers correctly and addressing concerns about response quality and speed. Amazon has internally referred to the project as “Banyan” and “Remarkable Alexa,” though it remains unclear if these names will be used publicly.
Amazon plans to initially roll out the new Alexa to a limited number of users for free, though the company has considered charging a monthly fee of $5 to $10. The existing version, now called “Classic Alexa,” will remain available at no cost. One source indicated that Amazon has stopped adding new features to Classic Alexa as it focuses on the generative AI upgrade.
Anthropic is in the game
To power the new Alexa, Amazon is leveraging artificial intelligence software from Anthropic, a startup in which it has invested $8 billion. The AI-driven assistant is designed to remember user preferences, enabling personalized music or restaurant recommendations and allowing modifications to requests within a single session. Compatibility with existing Alexa devices will ensure a seamless transition for users.
Despite its potential, the new Alexa carries risks common to generative AI systems, such as the possibility of fabricated answers or “hallucinations.” These challenges were among the reasons Amazon repeatedly delayed the launch after demonstrating an early version in September 2023. Concerns over quality led to further postponements, and the rendition shown last year was never released to the public.
Jeff Bezos loves Star Trek for a reason
Alexa originated from Jeff Bezos’ vision of creating a voice-activated assistant akin to those seen in “Star Trek.” While Alexa accelerated the adoption of voice assistants following its 2014 release, its usage has plateaued in recent years, often limited to basic tasks like setting timers and checking weather updates. Amazon hopes the generative AI upgrade will reinvigorate user interest and convert some of its hundreds of millions of Alexa-enabled devices into paying customers.
Executives are scheduled to hold a final “Go/No-go” meeting on February 14 to assess the readiness of the new Alexa service. If approved, the rollout could position Amazon to capitalize on a significant market opportunity. Analysts estimate the company could generate $600 million annually if 10% of active users, estimated at around 100 million devices, opt for a $5 monthly subscription.
