Amazon unveiled a new AI-powered version of its digital voice assistant Alexa on Wednesday, aiming to score with personalized "conversational" interactions. The tech giant is betting that Alexa+ will provide a decisive advantage over competitors like Google, Meta, and Microsoft.

The new version is intended to recognize user habits and adapt in "natural, flowing conversations," Amazon announced. In doing so, Alexa+ will increasingly offer personalized services, from managing daily routines to controlling connected household devices.

The new Alexa knows almost every instrument in its users' lives," said Panos Panay, Amazon's head of devices, at the presentation in New York. The premium version costs $19.99 per month or is included in the $14.99 Prime membership – a targeted lure to strengthen the Prime business.

Amazon thus strengthens its efforts to integrate generative AI into products and tap into new revenue sources. While the company has already invested billions in AI-driven cloud services with Amazon Web Services (AWS) and recently put 8 billion dollars into the AI startup Anthropic, a breakthrough in the consumer business has yet to materialize.

The development of Alexa+ was marked by delays and technical challenges. Problems such as slow response times and so-called "hallucinations" in the answers led to the launch being delayed by more than a year and a half.

The new Alexa uses several large language models, including Anthropic’s Claude and Amazon's own Nova model, to control different processes depending on the task. At the same time, the company is launching an Alexa website and a new mobile app.

During the presentation, Amazon demonstrated how Alexa+ makes restaurant reservations, books repair services, orders a ride to the airport, or purchases concert tickets. The processing of uploaded documents and images was also demonstrated.

Although Amazon has sold over 500 million Alexa-enabled devices worldwide, it is unclear whether the division has ever been profitable. Despite investments amounting to tens of billions of dollars, the economic future of the voice assistant remains uncertain.