Amazon prepares the biggest update of Alexa with artificial intelligence

Last update: 06/02/2025

  • Amazon will introduce an improved version of Alexa with generative artificial intelligence on February 26.
  • The new assistant will be able to maintain fluid conversations and respond to multiple requests in sequence.
  • Alexa is expected to act as a virtual agent, able to make decisions and perform tasks on behalf of the user.
  • It will initially be free for some users, but Amazon may charge a monthly fee of between $5 and $10.
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Amazon is about to make a significant transformation to its virtual assistant Alexa, incorporating generative artificial intelligence to offer a much more advanced and conversational experience. The company has scheduled a special event on February 26 in New York, where it is expected to present this renewal, marking the biggest change to its voice system since its launch more than a decade ago.

For the past few years, Alexa has been present in millions of homes, but its evolution has been overshadowed by AI advances from competitors like OpenAI and Google. Now, Amazon is looking to catch up with an improved version of its assistant, capable of maintain fluid dialogues and act more autonomously to make life easier for users.

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A smarter, more conversational Alexa

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Alexa will go from responding to simple commands to understand and process multiple requests in sequence, which will allow for more natural and dynamic interactions. According to sources close to the project, it will also be able to act as a virtual agent, that is, an assistant capable of making decisions and executing actions without the user having to give each instruction separately.

This development represents a significant leap forward from the current version, which only responds to individual requests. With the new update, users will be able to, for example, ask Alexa to buy tickets for an event, book transportation, or place online orders without requiring constant confirmations.

While the company has not yet revealed all the details, the new Alexa is expected to be compatible with current Echo devices, without requiring users to purchase new hardware. However, some advanced features may require more powerful devices in the future.

Possible subscription business model

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Initially, the new service will be offered free of charge to a limited number of users, but Amazon is considering the possibility of introduce a monthly subscription which could be priced between $5 and $10. This strategy would seek to monetize a service that has not generated significant direct revenue for the company until now.

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It is estimated that if just 10% of active Alexa users opted for the paid plan, Amazon could generate annual revenues of around $600 million, according to Bank of America analysts.

The challenge of artificial intelligence

Despite its advantages, the application of generative AI in Alexa is not without challenges. One of the main problems that Amazon faces is the accuracy of the answers, since language models can generate incorrect information or misinterpret commands.

Another delicate aspect is the transaction securityAlexa could potentially make purchases or reservations on behalf of the user, raising questions about how permissions and payment authentication will be handled.

Amazon bets heavily on AI

Anthropic

To develop this new version of Alexa, Amazon has made a significant investment in artificial intelligence. The company has allocated $8.000 million at startup Anthropic, a specialist in next-generation language models. This collaboration could bring key improvements in conversational capacity and in understanding the context of interactions with users.

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Furthermore, Amazon is not the only company working on the evolution of virtual assistants. Apple and Google have already begun to integrate generative AI into their assistants, which has raised consumer expectations and forced Amazon to accelerate its development.

A new era for virtual assistants

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With this renewal, Amazon seeks to regain leadership in the voice assistant market and demonstrate that Alexa can be more than just a smart speaker. The ability for it to perform complex tasks and interact naturally with users could redefine the way people use artificial intelligence in their daily lives.

As the event date approaches, February 26, they will be known More details on the new features that this improved version of Alexa will bringMeanwhile, expectations are growing and many are wondering whether this update will mark a before and after in the way we interact with home technology.