With the first auditions being held in small, intimate rooms once again Louis explains that contestants will really have to step it up.
He said: "There's nowhere to hide. You find out a lot more about the contestant and they tell you more. Sometimes they're like rabbits in the headlights. It puts them on the spot but that's what it's like."
The renowned music manager believes this is exactly what he needs to get to know a contestant and to let them stand out.
"The worst thing for me is the usual people coming in and saying, 'All I've ever wanted to do is sing. I was meant to sing. I was born to do this'," Louis continued.
"And then they do a bad karaoke version of somebody's song and they do all the same mannerisms. It's not a karaoke competition!"
But as well as an attention-grabbing singing voice, Louis insists they must have the highly coveted 'x factor'.
"It's not just a singing competition, it's about everything," he added. "They need to be amazing and they need to have something different."
Marking his decade anniversary on the show, Louis is sure that he could win if he gets the right category. However, he will be up against tough competition with returning judge Sharon Osbourne.
"I think having Sharon back is just the icing on the cake," he said. "She's not like anybody else, she is unpredictable, she's fiery, she's funny, she's Sharon. She's just different - that's what I love about her."
He also admitted that this is the first year all four judges - including Gary Barlow and Nicole Scherzinger - have actually clicked, both on and off screen.
"The four judges really get on well, on camera and off camera. It's the first time we've had four judges get on so well off camera," he said.
The X Factor returns on ITV1 on Saturday 31 August at 8pm. The next episode will be broadcast on Sunday 1 September, also at 8pm.
By Rebecca King
Are you looking forward to The X Factor's return? Let us know below, as the best comment each week wins £50!