Hey followers! Today, let’s talk about Airbnb’s take on artificial intelligence and why AI isn’t quite replacing Google’s search just yet.

After reporting a strong second-quarter earnings, Airbnb CEO Brian Chesky discussed their AI plans. He emphasized that AI chatbots are not the ‘new Google’—at least not for now. While they can generate leads, they can’t replace Google’s search referrals yet.

Chesky pointed out that AI models lack exclusivity, as the technology powering ChatGPT isn’t proprietary. Airbnb can use similar models via APIs, which means the playing field is still open for others to compete. He explained that succeeding with AI requires customizing models and interfaces for specific apps, not just having the best model.

The CEO also shared that Airbnb is integrating AI in customer service, which has already reduced guest inquiries to human agents by 15%. The AI customer support system was built using 13 models trained on thousands of conversations. Future plans include expanding to more languages and creating more personalized AI helpers that can handle tasks like trip planning and cancellations—making AIs more agentic than before.

Despite these advancements, Chesky sees AI as a tool for lead generation rather than a replacement for traditional booking channels. He aims to ensure that Airbnb remains the top choice for travelers, with AI supporting that goal.

Airbnb had a revenue of $3.1 billion in the quarter, beating expectations, but stock prices dipped due to cautious growth forecasts. Chesky highlighted that AI integration is about enhancing existing services, not replacing core functions entirely.

In essence, Airbnb is exploring AI’s potential carefully. They recognize the challenges—such as the need for precise, hallucination-free AI—and are committed to tuning and customizing their models for specific uses. AI remains a promising tool, but not the ultimate replacement for traditional search—and that’s a lesson for all tech companies out there!