Amazon has been under great pressure to update its 10-year-old assistant for the AI age, with customers increasingly frustrated with the device's stilted conversation and difficulties in performing tasks beyond timers and playing music.

Apple's Siri has also been struggling to deliver more intuitive interactions and promises increased performance with the use of artificial intelligence.

"If I had to share one thing with that pumped-up crowd, I'd say this: I'm not just an assistant. I'm your new best friend in the digital world," the device, Alexa Plus, said to an audience at a launch event in New York.

Panos Panay, senior vice president of devices and services, said that Alexa Plus opens a new age for the voice devices.

"Until this moment...we have been limited by technology," Panay, a former Microsoft executive, said at the event.

A video shown at it demonstrated Alexa Plus carrying out new activities, including booking concert tickets or sending text messages to a babysitter.

According to the company, Alexa with AI can also book a trip and send it to everyone's calendar and remember your favorite food, movies, and music.