Amazon Alexa event live – latest news and rumors ahead of the suspected AI-enhanced Alexa 2.0 unveiling
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As interesting as it is to hear about how Amazon is using AI across its enterprise services and e-commerce platform, we’re ten minutes in and thus far Jassy is mostly talking about things that have nothing to do with Alexa. I’m calling fake news on those Alexa-themed invites (just kidding).
It is, however, cool to learn about how AI is improving customer shopping experiences. From customer sentiment summarization to customer service and even clothes sizing standardization, there’s a lot of work behind the scenes at Amazon.
Jassy’s opening speech heralds to the brand’s 25+ years experience of pioneering AI experiences, which is fair self-praise for a company that revolutionised voice assistants.
He’s, understandably, very confident in how AI will change customer experiences moving forwards, invoking Amazon’s deep partnership with companies like Nvidia to remind the crowd just how much AI-gravitas the brand has.
All good stuff, but no movement on consumer devices and services just yet.
It’s time to go, and Andy Jassy has taken to the stage – a rare appearance from a CEO who prefers to stay out of the limelight. Stay tuned!
He’s promising a 70-minute presentation, so buckle up for a long haul.
As Lance just pointed out in our work chat, this is a big make-or-break AI moment for Amazon, and with minutes to go I’m sure a fair few Amazon staff are getting hot under the collar.
“There are so many Alexa devices in the US, Amazon could race to the front – if they introduce ChatGPT-level capabilities,” he says.
As of right now, Alexa is pretty far behind the competition in terms of AI; though they’re standing to be reams ahead in the smart home department, should this gambit pay off for them.
Jake has noticed a neat little quirk in the stage for the upcoming briefing (which starts in just a few minutes!); the stage appears to have a ring of LEDs around it, currently a static white. Perhaos it will glow blue or green when the big news drops?
It’s been almost five years since Amazon’s last flagship Echo speaker hardware update, and though the fourth-generation Amazon Echo (2020) smart speaker is still a solid smart home companion, it feels about time for another refresh for Amazon’s baseline Echo speaker range. Perhaps some improved audio specs to showcase the new Alexa 2.0 voice assistant, (which we expect will also be an option for current Echo devices.)
As someone who is more than satisfied with the performance of classic Alexa on my trusty Echo Pop speaker, it really depends on what Alexa 2.0 has in store for us. It’ll take Amazon some convincing for me to make the switch, and that’s before considering the possible subscription fee factor!
Many of the people in the Alexa subreddit are looking for solutions to problems – people whose Echo speakers are working fine will have a lot less reason to join. They’re generally less satisfied than the typical Alexa user, so the results of a recent poll on subscription pricing are interesting. Most Redditors said they wouldn’t pay for Alexa at all, but 12% would be willing to part with $5 a month for it, and 7% would pay $10 for a subscription. For a group of folks who are disproportionately annoyed by their smart speakers, that’s pretty high.
AI Subscription from r/alexa
According to Lance, there’s a palpable sense of excitement on the ground in NYC right now.
He says: “What’s most remarkable about this Amazon event is that no one I’ve talked to knows exactly what’s to come. There have been zero leaks and while we all expect Alexa 2.0 and potentially new devices, no one knows the details. It’s created a bit of a buzz here.”
However, some early signs point towards hefty software updates, following on from the previous post which gives us a sneak peek of a new widgets interface: “Putting the 65-inch FireTV Omni MiniLED Series, the new Echo Show 21, and the new FireTV Soundbar Plus sound bar on display is the clearest indication we’re about to see a bunch of device updates.”
Our first real slither of news is here, and it looks to be a new widget interface, proudly displayed on the all-new Echo Show 21.
I love the Echo Show widget feature, but it’s definitely in need of further customization options and more ways to configure widgets; by the looks of things, my wishes might be about to come true!
We ran a survey on our WhatsApp earlier today to find out what rumors our readers are most excited about ahead of today’s Alexa event, and by and large the most popular answer was a more conversational Alexa.
Back in 2023 when we saw our first early glimpse of the new Alexa smarts, then-Devices and Services SVP Dave Limp demonstrated as much, suggesting we’re likely to see more along these lines today.
There were slim margins for the rest of the options; Alexa remembering context pulled in the lead a little, followed by more natural prompts, then the lesser-selected better routines and automations, than new hardware and improved app experience.
… and we’re through the doors now, too! Jacob Krol joins Lance Ulanoff as our in-person team at the event.
No news yet, barring that the room breakfast is being served in features ample extension cords, which is tantamount to caviar for us journalists.
Over the past decade, we’ve seen Alexa evolve from a fun gimmick into a trusted companion capable of controlling different rooms and tech within the home.
There’s no doubt that today will be smart home-centric, but there’s a chance that Amazon could take this as an opportunity to push the use of Alexa outside of the home. By that, I’m talking about improving its Alexa voice assistant in products such as the Amazon Echo Frames and Echo Buds earphones – possibly to match the more advanced features of the anticipated Alexa 2.0.
We’ve arrived!
Punctual as always, Lance Ulanoff is on the ground and has arrived at the venue for today’s event!
In truth, he actually arrived about an hour ago, left to get breakfast and is still there with enough time to leave and come back again. Meanwhile, Alexa has to remind me three times every morning that I’ll be late if I don’t leave for work soon.
Will Alexa 2.0 change Amazon’s pricing strategy?
As I’ve mentioned, based on the rumor mill, we’re fairly confident the newly enhanced Alexa will be a subscription-based service, but how might the software effect hardware pricing?
As we’re seeing from the AI boom in silicon valley, AI is a pricey business, which is in direct conflict with Amazon’s price-point strategy. This strategy may have contributed to the company reporting $25 billion in losses from its smart device business between 2017 and 2021, alongside the fact that Alexa usage hasn’t driven the e-commerce revenue Amazon had hoped for.
So, what happens if subscription fee uptake isn’t high enough? If Amazon keeps its ‘basic’ Alexa subscription-free, many consumers may still opt to use the affordably priced smart speakers and displays as glorified digital timers, and the company will need to recoup its costs elsewhere.
That’s where my last post regarding chipsets comes in; if we see an AZ3 processor, or further hardware adaptations in the coming years to support a more powerful Alexa, does that spell the end for cheap and cheerful Echo devices?
Will we see new neural network hardware today?
Judging by the trends of silicon valley, processors are the real golden goose of the AI revolution; so will Amazon’s AZ2 neural edge processor also see an upgrade?
The AZ2 debuted in 2021 alongside the Echo Show 15, and has been used in pretty much all of the Echo devices since. It’s plenty powerful and pretty scalable thanks to its quad-core architecture, allowing for more local processing instead of relying heavily on the cloud – though not enough so that Alexa won’t occasionally switch to its default voice when WiFi connectivity drops.
The big question is, will it be enough to handle the demands of a more intelligent Alexa, and if not, what does that mean for the millions of Echo devices housing the AZ2?
I’d hedge my bets that, at the very least in the early years, the AZ2 will be enough – models using older hardware may, however, be excluded from Alexa 2.0 compatibility. Amazon hasn’t slowed its Echo product release cycle whatsoever in recent years, with many products like the Echo Show 15 (2024) seeing iterative upgrades (and some meatier redesigns for the likes of the Echo Spot), so I’d be surprised – and disappointed – if they’d jumped the gun knowning new components are on the horizon.
If Amazon announces that Alexa 2.0 will be compatible with existing Echo speakers, this could be a good time to pick up one or two more so you’re prepared. We’ve rounded up all today’s best deals on the full range, including offers from Amazon itself and other retailers around the web.
Once your speakers arrive, check out our guide to setting them up and avoiding common mistakes to save yourself potential headaches later on.
Amazon has done a sound job at keeping all of its new announcements under wraps, and although we have a pretty strong idea of what to expect based on rumors and speculation, nothing has been set in stone on Amazon’s side. But we’re confident in our guesses of what products will be a no-show at today’s Alexa event – most notably Kindles.
Though Amazon skipped its Alexa event last year, it made up for it by unveiling brand new Kindle models, including the Kindle Colorsoft, in October last year. In addition to its first color Kindle, Amazon announced its pricey Kindle Scribe, the 12th gen Kindle Paperwhite, and 11th gen Kindle – a generous launch for keen readers. So, if you’re an admirer of Amazon’s line of ereaders, then I’m sorry to say that it’s unlikely a new Kindle will be announced later today.
One of the biggest questions for the leagues and leagues of Echo device owners is whether or not Amazon will follow suit with many of its peers and brick older speakers in the coming years.
Our US Editor-at-Large laments the future of his original Echo speaker in his recent feature, and it’s an excellent read.
Who is Panos Panay?
One name you’re likely to see a lot today is Panos Panay, current head of Devices and Services. Panay took the reigns in 2023 from long-serving Amazon SVP of Devices and Services, David Limp, following his retirement from the company (he didn’t go far though, hopping over to Bezos’ Blue Origin venture as its new CEO).
Panay joined Amazon following a 19-year stint at Microsoft, where he was best-known for leading the development of Windows 11 in 2021 as well as creating the Surface line of devices in 2012; so his are a safe pair of hands for Alexa both on the hardware and software front.
It seems a lot of Reddit users are shocked at the idea of potentially paying for Alexa, which isn’t too surprising considering how many people only use its most basic features. Last summer, it emerged that Amazon had made over $25 billion in losses from its smart device business between 2017 and 2021, partly because owners prefer to use their smart speakers to set alarms and not much else.
“We worried [we’d] hired 10,000 people and we’ve built a smart timer,” one former senior employee told the Wall Street Journal at the time.
As we patiently wait for Amazon to commence its first device-focussed event since 2023, we’ve been casting our predictions and throwing guesses as to what could be unveiled later today. As it stands, we’re pretty confident that the AI-infused Alexa 2.0 will receive a release date after it was teased at Amazon’s last Alexa event and like we’ve said, the voice assistant has been revolutionary in the realm of smart home tech since its inception over a decade ago. Therefore, it’s definitely time for a revamp, but the catch is that Amazon has been toying with the idea of a subscription fee for the new AI voice assistant.
Other rumors we’ve spotted also point to a new Echo smart speaker device which could serve as a new home for Alexa 2.0. Amazon’s lineup of Fire TV devices may also have their time in the spotlight at today’s event with speculations pointing to new function updates and maybe even new hardware announcements.
For a deeper insight to what Amazon could be announcing be sure to check our roundup of the four things you can expect to see at Amazon’s Alexa event!
When might Alexa 2.0 actually land?
It seems almost certain that we’ll hear about Alexa 2.0 during today’s big Amazon event – but when will it actually roll out to smart speakers? The latest rumors suggest a rollout might not happen until March 31, because Amazon needs to make some tweaks to improve the assistant’s accuracy.
That doesn’t seem like a lot of extra time to make meaningful adjustments, so I’m hoping we don’t get a vague “in the coming months” release window for the rebooted Alexa today.
But Amazon does need to get it right – it’s supposedly planning to charge $5-$10 a month (around £5-£10 / AU$8-AU$16) for full access to its AI-powered Alexa. With ChatGPT’s Advanced Voice Mode now coming to its free tier (an announcement that was surely timed to rain on Amazon’s parade), Alexa 2.0 will need to be capable of some impressive tricks to justify that rumored cost.
Not everyone on the Alexa subreddit is totally against the idea of a paid tier, but they want it to offer something special. Suggestions include a less robotic voice (more like ChatGPT or Claude), the ability to use Boolean operators in commands, or just scrapping the option to play soothing ocean sounds when the lights are turned off at night. Shame, I quite like that.
Especially at release, Alexa was a real game-changer, but with the passage of time comes new technology and new demands on aging software. That’s certainly the case with Alexa; the voice assistant has seen many quality of life updates and new features, but it’s starting to show its age.
There’s plenty that could be improved, but I wrote yesterday about five specific features that would make Alexa 2.0 genuinely worthwhile. Check it out!
With rumors flying about Alexa 2.0’s subscription fee, we’ll hopefully be learning more later today on what that means for the original Alexa. Logic would dictate they wouldn’t fully ditch it and would leave that as the ‘basic’ option in all Echo devices, right? Right?
Anyway, for a refresher on what Alexa can do, check out our list of the Best Alexa Skills and commands.
Instead of a Devices and Services event in 2024, Amazon opted to trickle various product releases throughout the year, including a surprise launch for the all-new Echo Show 21, as well as second generations of the Echo Spot and Echo Show 15.
We’ve reviewed them all – check them out!
Welcome to our live blog coverage of Amazon’s Devices and Services event! Our very own Lance Ulanoff and Jacob Krol are on the ground in New York City to attend the event in person, and I’ll be covering all the news as we learn more from Amazon about its 2025 products.
Stay tuned, because this could be a big moment for Amazon!
More about smart speakers
Refresh 2025-02-26T15:12:34.177Z As interesting as it is to hear about how Amazon is using AI across its enterprise services and e-commerce platform, we’re ten minutes in and thus far Jassy is mostly talking about things that have nothing to do with Alexa. I’m calling fake news on those Alexa-themed invites…
