Amazon is working to transform its Alexa voice assistant into a more advanced AI agent, aiming to enhance user experience and functionality. However, the company is encountering several technical hurdles, including issues with AI hallucinations, latency, and reliability at scale, which are delaying the rollout of the updated version. A recent report indicates that these challenges are complicating Amazon's efforts to integrate generative AI into Alexa, which is crucial for maintaining competitiveness in the rapidly evolving AI landscape. With over 500 million devices in use, the successful implementation of these upgrades is vital for Amazon's strategy in the smart technology market.