Amazon Set To Unveil AI-Powered Alexa, New Echo Devices, More

Amazon is set to host an in-person event in New York on February 26, where the company is likely to unveil a significant artificial intelligence (AI) upgrade to its voice assistant Alexa. Notably, Amazon has not hosted a major device event in nearly two years, so we can expect brand new Echo devices and much more from the event.

The new version of Alexa is likely to engage in more natural conversations with improved contextual awareness. Leveraging artificial intelligence, it may gain the ability to process multiple sequential prompts, enabling it to perform multi-step tasks. Additionally, Alexa could receive agentic AI capabilities that allow it to automate repetitive tasks with minimal user intervention.

New Hardware And Software

Alongside the Alexa upgrade, Amazon is said to bring new Echo models, including next-generation versions of both the Echo and Echo Dot. According to a previous report by Reuters, Amazon plans to initially release the AI-powered Alexa to a select group of users for testing purposes.

Subscription Model, Pricing Strategy

While the initial version is said to be free, Amazon is reportedly considering implementing a monthly subscription fee ranging from $5-$10 for premium service. 

The company intends to maintain the current version of Alexa-- to be rebranded as "Classic Alexa" -- as a free option, though reports indicate that Amazon is unlikely to develop new features for this legacy version.

Compatibility, Bundling Options

The AI-enhanced Alexa is expected to be compatible with certain previous-generation Echo devices. However, Amazon may introduce new Echo and Echo Dot models featuring dedicated AI hardware. 

Following Google's approach with its Gemini Advanced subscription for Pixel devices, Amazon might include a complimentary subscription to the AI-powered Alexa with these new devices.

While no new Fire TV hardware announcements are expected at the event, Amazon may introduce software enhancements, likely including AI-powered features for the Fire TV platform, though specific details are limited.