Feb 26 (Reuters) - Amazon ( AMZN ) unveiled on Wednesday

an overhaul of its Alexa voice assistant, embedding it with

generative artificial intelligence.

"Alexa knows almost every instrument in your life, your

schedule, your smart home, your preferences, the devices you're

using, the people you're connected to, the entertainment you

love and use many of the apps you use, a lot of the services you

need," said Panos Panay, Amazon's ( AMZN ) head of devices and services,

at a launch event in New York.

The new service is called Alexa+, Panay said, echoing the

nomenclature of the higher tier of many tech and streaming

service offerings.

It marks the unveiling of a secret project known internally

as "Banyan" aimed at making Alexa more conversational.

Generative AI is a type of artificial intelligence that can

learn from data and improve over time.

The effort carries significant weight at Amazon ( AMZN ), 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 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. Amazon ( AMZN ) did

not immediately address pricing details.

Panay said Alexa+ is live as of Wednesday.

Amazon ( AMZN ) 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.