Airbnb CEO Says AI Agents Aren't Replacing Google

Airbnb CEO on AI: Not the "New Google" Yet

Following a successful second-quarter earnings report, Airbnb CEO Brian Chesky discussed the company’s AI strategy with investors. He cautioned against viewing AI chatbots as a direct substitute for traditional search engines like Google.

While AI chatbots hold potential for generating new leads for the travel platform, they don’t currently replicate the referral traffic provided by Google.

Early Stages of AI Integration

“We’re still in the process of understanding this evolving landscape,” Chesky stated during the Q2 earnings call. He emphasized that AI agents shouldn’t be immediately considered the “new Google.”

A key factor in this assessment is the non-proprietary nature of current AI models.

“It’s important to remember that the underlying model powering ChatGPT isn’t exclusive. Airbnb, and many others, have access to the API and alternative models,” Chesky explained.

A Diverse AI Ecosystem

Chesky envisions a broader AI landscape beyond chatbots. This includes specialized startups focused on niche applications and established companies adapting AI technologies.

“Simply possessing a powerful model isn’t sufficient. The ability to fine-tune the model and create a tailored interface for specific use cases is crucial,” he added.

AI Applications at Airbnb

Airbnb intends to leverage AI in several areas of its business.

For example, their AI-powered customer service agent in the U.S. has already reduced the number of guests needing to contact a human agent by 15%.

This application proved more challenging than AI-assisted travel planning, as customer service agents require unwavering accuracy and cannot provide inaccurate information.

Advancements in Customer Service and Search

The customer service agent was developed using 13 different models and trained on a vast dataset of conversations. Currently available in English within the U.S., it will expand to additional languages this year.

Next year, the agent will become more personalized and proactive, capable of handling tasks like reservation cancellations and even assisting with trip planning.

Furthermore, AI integration is planned for Airbnb’s search functionality in the coming year.

Strategic Considerations for Third-Party AI Agents

While Airbnb is exploring potential collaborations with third-party AI agents, a user account is still required to complete bookings.

Chesky believes this will prevent the commoditization of Airbnb’s services, a trend seen in the airline industry.

He views AI as a promising avenue for “potentially interesting lead generation.”

“Our priority is to establish Airbnb as the primary platform for travel bookings. We remain open to integrating with AI agents as the technology evolves,” he stated.

Financial Performance

Airbnb exceeded analysts’ expectations in the quarter, reporting revenue of $3.1 billion and earnings per share of $1.03. However, the stock experienced a decline due to forecasts of slower growth in the latter half of the year.