The firm has been short on details beyond confirming an event it is hosting with its head of devices in New York is Alexa-focused. However, people familiar with the matter told Reuters the event will see the unveiling of a secret project known internally as "Banyan" aimed at making Alexa more conversational.
The effort carries significant weight at Amazon, which has plowed billions of dollars into Alexa since its launch in 2014 in the hope of putting the service into a range of devices and ultimately driving sales on its main e-commerce website.
Alexa is voice-controlled software installed in products such as smart speakers that can provide answers to user questions, play music, set timers and serve as a hub for home automation, by linking internet-connected devices so that, for instance, a light can be turned on with just voice prompts.
The new Alexa AI service will be able to respond to multiple prompts in sequence and, company executives have said, even act as an "agent" by taking actions for users without their direct involvement. That contrasts with the current iteration which generally handles only a single request at a time.
Executives have debated charging as much as $10 per month for the new service, people have told Reuters, to recoup some of the investment sunk into the money-losing business.
At least initially, Amazon will also continue to offer what it is now calling "Classic Alexa," the version broadly available today for free, as it rolls out the new service to a limited group of consumers in the coming weeks and months.
Amazon has said there are some 500 million Alexa-capable devices in consumer hands already, meaning the revamp is at once a huge money-making opportunity for the Seattle retailer - and a big financial risk if it does not live up to expectations.
The company earlier this month sent reporters invites to an event to be held later today at a space in New York's Tribeca neighborhood.
