Amazon is holding a press event this week, where it is expected to finally launch its "new" Alexa, a revamped version of its voice assistant infused with generative AI capabilities. The event, scheduled for 10AM on Wednesday, February 26th, in New York City, will be hosted by Amazon's new devices and service chief Panos Panay, hinting at new hardware announcements.

The "new" Alexa was first announced in September 2023, and its launch has been long-awaited. The revamped voice assistant is expected to understand natural speech, interpret context, respond to multiple requests in a single command, and take action on the user's behalf with deeper API integrations and agentic abilities. This means users will be able to talk to Alexa without using clunky nomenclature and get more useful responses.

For smart home control, users will be able to issue complex commands, such as "Alexa, turn out the lights, lock the back door, and turn the thermostat to Sleep — oh, and play sleep sounds in the bedroom," and the Assistant will execute all the tasks. Amazon's new Alexa will be tuned in to the user's smart home and its capabilities, allowing for seamless integrations with various devices.

At CES this year, companies working on integrations with the new Alexa showcased their developments, using Amazon's new developer tools Dynamic Controller and Action Controller. These tools will enable features that allow the Assistant to better understand what users want devices to do, such as saying "Alexa, the floor is dirty," and it will send out the robot vac.

In addition to the revamped Alexa, Amazon is expected to announce new hardware, including a flagship fourth-gen Amazon Echo speaker, which is due for an upgrade. The company has said its new Alexa will run on all current hardware, but a new Echo speaker with a new design, improved processing power, local control, and more smart home sensors is likely.

Amazon may also push for more Alexa usage on-the-go with new Echo Frame smart glasses and a third generation of the flagship Echo Buds, making the smarter Alexa accessible wherever users are. Furthermore, new Fire TV features, including improved Alexa search and generative AI screensavers, may be announced, along with new, more powerful Fire TV hardware.

Notably, Amazon has said it's considering charging for the new Alexa, with reports suggesting a price between $5 and $10 a month. This would be a first for the company, but it's fairly common with AI services. If Amazon can deliver on its promises and create enough value for users, a subscription-based Alexa may be a viable option.

However, making Alexa really useful is Amazon's biggest hurdle. The company needs to find a way to connect to users' personal data, combined with the context it has about their home, to create a truly valuable experience. It's a big if, and Amazon has a huge trust and privacy mountain to climb to get there.

Overall, Amazon's big Alexa event is expected to bring significant changes to the voice assistant and its ecosystem. With the revamped Alexa, new hardware integrations, and potential subscription-based model, Amazon is poised to take its smart home offerings to the next level.