The anticipated upgrade follows indications from CEO Andy Jassy in October 2024 that a new version of Alexa would arrive soon, focusing on a complete overhaul of its AI foundation.
To help cover the costs of this new technology, Amazon plans to introduce a monthly subscription fee for the revamped Alexa, estimated to be between $5 and $10.
Initially, the new Alexa will be available for free to a limited user base, with potential plans for a subscription model in the future.
Despite the popularity of Alexa, with hundreds of millions of devices in homes, Amazon has struggled to monetize the service effectively, leading to substantial financial losses.
The company has been enhancing Alexa's AI features to compete against rivals like OpenAI, Google, and Microsoft, as it seeks to convert users into paying customers.
Panos Panay, Amazon's Senior Vice President of Devices, will be present at the event, marking his first major presentation since joining the company from Microsoft.
Amazon's AI lead has mentioned challenges with generative AI, including the risk of providing inaccurate information, which has contributed to delays in the rollout of the new Alexa.
With over half a billion Alexa-enabled devices in circulation, the new features could transform Alexa into a vital tool for daily activities such as scheduling and shopping.
The absence of a formal devices event in 2024, where new products are typically announced, has led to speculation about the timing and features of the upcoming Alexa update.
The event is expected to unveil the next-generation Alexa, which has been highly anticipated since its teaser at a previous devices event in September 2023.
Amazon is preparing to unveil a significant upgrade to its Alexa digital assistant at a product event scheduled for February 26, 2025, in New York City.
This new AI-powered Alexa is expected to enhance conversational abilities, allowing it to perform tasks on behalf of users, marking a substantial improvement over the current version.
