Amazon.com Inc. is set to unveil a long-delayed upgrade to its Alexa voice assistant, powered by generative artificial intelligence (AI), at an event scheduled for February 26 in New York. The event will be led by Panos Panay, head of Amazon's devices and services team. The new version of Alexa, which has been in development for some time, aims to enhance user interaction by allowing the AI to respond to multiple prompts in sequence and act as an 'agent' on behalf of users, performing tasks without direct involvement. This upgrade represents a significant opportunity for Amazon, with over 500 million Alexa-enabled devices in use, but also poses risks as the company seeks to monetize the service. Amazon plans to initially offer the new Alexa, internally referred to as 'Remarkable Alexa' or 'Banyan', to a limited number of users for free, though it has considered implementing a monthly subscription fee of $5 to $10. The company will continue to provide the current version, dubbed 'Classic Alexa,' for free, but has ceased adding new features to it. The development of this AI-powered Alexa has faced challenges, including concerns over response quality and speed, and the potential for 'hallucinations' or fabricated answers. Amazon executives are set to make a final decision on the readiness of the new Alexa at a 'Go/No-go' meeting on February 14. Amazon will rely, at least in part, on artificial intelligence software from startup Anthropic, in which it has invested $8 billion, to underpin the AI in Alexa.