Feb 26 (Reuters) - Amazon ( AMZN ) on Wednesday is set

to host an event showcasing new capabilities for Alexa that will

bring the service into the age of generative artificial

intelligence, more than a decade after it ushered in a wave of

investment in voice assistants.

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 ( 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, 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 ( AMZN ) 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 ( 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.

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.