• Home
  • News
  • Coins2Day 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechAmazon

Amazon unveils its long-awaited AI version of the Alexa voice assistant

By
Matt Day
Matt Day
,
Mark Gurman
Mark Gurman
and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Matt Day
Matt Day
,
Mark Gurman
Mark Gurman
and
Bloomberg
Bloomberg
Down Arrow Button Icon
February 26, 2025, 11:34 AM ET
Amazon's Panos Panay debuts the new AI-powered Alexa
Amazon's head of devices Panos Panay presents the new Alexa voice assistant, which can talk to users.Andrej Sokolow / picture alliance—Getty Images

Amazon.com Inc. Has rebooted Alexa with artificial intelligence. 

Recommended Video

The rollout is the biggest overhaul of the voice-activated assistant since Amazon introduced it more than a decade ago. The move is a test of whether the company and its new devices czar, former Microsoft Surface boss Panos Panay, can revitalize its most important consumer electronics franchise.

Amazon’s vision for Alexa has always been ambitious, but “until this moment – right this moment — we have been limited by the technology,” Panay, who leads the Devices & Services unit, said at an event in New York on Wednesday. Panay said teams had re-designed “all of Alexa.”

A demo video showed Alexa booking concert tickets, restaurant reservations and texting a babysitter. “She’s useful,” Panay repeated, before conducting what he said was a live conversation with the updated software. During the presentation, he demonstrated a flowing ongoing conversation — a departure from the stilted, single-question interactions Alexa users are familiar with. 

Alexa-powered Echo smart speakers were the must-have gadgets of the late 2010s. The company marshaled a massive effort to capitalize on that interest, releasing a flurry of devices and seeking ways to entice the growing audience of people who interacted with Alexa to spend some money on the platform. 

But shopping-by-voice was largely a dud, and other sources of revenue failed to materialize as the company had hoped. Engineers who worked on Alexa in recent years say the mood in the division soured when executives curbed hiring and then laid off thousands of workers. When OpenAI released its error-prone but uncannily human ChatGPT in late 2022, Alexa was still struggling to find new ways to engage a massive user base that mostly used the assistant as a kitchen timer and trivia machine. 

Panay’s predecessor, Dave Limp, announced an AI-powered Alexa in September 2023. So confident were executives in the new version’s imminent arrival that users were invited to register their interest in getting the upgrade. Internally, Amazon was targeting a release date of early 2024 for a test version.

But the launch was delayed for about a year because the software wasn’t ready for prime time. Some early testers found the new Alexa fell short of ChatGPT, while others said the voice assistant had a tendency to drone on.

The difficulties owed partly to the finicky nature of generative artificial intelligence, which is prone to packing incorrect information into authoritative sounding replies. Amazon also struggled to adapt its software to the AI era because it was designed not to generate answers on the fly but to fetch pre-written replies from a database. In internal tests, some Alexa-powered gadgets simply stopped working as a result of the attempted switch to AI.

Internally, Amazon didn’t want to risk launching the software prematurely, figuring the company might only have one good shot at regaining Alexa’s luster for the AI age.

Coins2Day Brainstorm AI returns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Coins2Day Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.
About the Authors
By Matt Day
See full bioRight Arrow Button Icon
By Mark Gurman
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Coins2Day 500
  • Global 500
  • Coins2Day 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Coins2Day Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Coins2Day Brand Studio
  • Coins2Day Analytics
  • Coins2Day Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Coins2Day
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Coins2Day Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Coins2Day Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.