Amazon's AI-overhauled Alexa launches soon, will cost up to $10: see who gets it for free

Finally, we're about to witness Alexa's touch up – and, as you can imagine, it will be AI-focused. I mean, is there anything left in 2025 that's not AI-branded?

These days, Alexa is not what it used to be. Amazon's digital assistant – once storming the market with a powerful hype – has been reduced to a mere kitchen timer. It simply cannot match people's needs, not while there are tools like ChatGPT, Gemini, DeepSeek, and the rest of the gang.

Now, the long-delayed update might be finally here, as there will be a February 26 event in New York. At it, Panos Panay, head of Amazon's devices and services division, is expected to preview the new technology. While an Amazon spokesperson confirmed to Reuters the event will focus on Alexa, no further details were provided.

This update marks the most significant evolution of Alexa since its initial release over a decade ago, when it helped popularize digital voice assistants. With more than half a billion Alexa-enabled devices in use, Amazon sees the new AI model as both an opportunity and a challenge.

The company aims to enhance Alexa's conversational abilities, potentially converting a portion of its extensive user base into paying customers as it seeks to improve the profitability of the division.

Unlike the current version, which typically handles single commands, the upgraded Alexa will be capable of responding to multiple prompts in a conversation and taking autonomous actions on behalf of users. However, concerns about response quality and speed have delayed its release.

Amazon executives have scheduled a final review meeting on February 14 to determine whether the service is ready for launch.

Generative AI technology has introduced challenges, including the risk of misinformation, known as hallucinations. Since Alexa is integrated into various devices, such as cars, televisions, and thermostats, ensuring reliability is a priority.

Initially, the updated service will be available to a limited number of users at no cost, though Amazon has considered a subscription fee of $5 to $10 per month. The existing version, now referred to as Classic Alexa, will remain free, though no new features are being added. Seems logical.

Amazon has internally referred to the project as "Banyan" and "Remarkable Alexa", though it is unclear if either name will be used publicly. The new Alexa will leverage AI technology from Anthropic, a startup in which Amazon has invested $8 billion.

While an earlier version was previewed in September 2023, quality concerns led to multiple delays, with this upcoming release expected to be the first major step toward Amazon's long-term vision for AI-powered voice assistance.