Airbnb is preparing to roll out artificial intelligence (AI) technology, but not in the way many travellers might expect. Instead of using AI to help users plan or book trips, the company will first implement AI in its customer support system.
During its Q4 2024 earnings call on February 8, Airbnb announced that AI-powered customer support will launch later this summer. Co-founder and CEO Brian Chesky explained that AI has the potential to provide exceptional customer service as it can understand multiple languages and process vast amounts of information. Initially, the AI will act as a customer service agent, expanding its capabilities.
Other major companies, including OpenAI and Google, are working on AI-powered agents to handle complex tasks. However, Chesky believes AI trip planning is still in its early stages and not yet ready for widespread adoption.
โHereโs what I think about AI. I think itโs still really early,โ Chesky said. โItโs probably similar toโฆ the mid-to-late โ90s for the Internet.โ
AIโs future impact on travel
While some companies are already experimenting with AI-powered trip planning, Chesky remains sceptical about its readiness. He stated that AI is not yet ready for โprime timeโ regarding travel planning. However, he acknowledged that AI will eventually significantly impact the travel industry.
As technology advances, Airbnb plans to expand its AI-powered customer service agent into other areas, including search features. In the long term, Chesky envisions AI evolving into a โtravel and living conciergeโ that can assist users with their entire travel experience.
Beyond customer service, Airbnb has also started using AI internally to improve productivity in its engineering department. However, Chesky urged caution, saying AI has not yet led to a major leap in productivity.
โIn a few years, we could see a medium-term impact, such as a 30% increase in technology and engineering productivity,โ he noted.
Airbnb sees strong earnings growth
Despite AIโs slow integration into travel planning, Airbnb reported impressive financial results for Q4 2024. The companyโs earnings exceeded expectations, leading to a 15% surge in its share price.
Airbnb generated US$2.48 billion in revenue for the quarter, surpassing analystsโ estimates of US$2.42 billion. The company also reported earnings per share of 73 cents, well above the expected 58 cents.
Chief Financial Officer Ellie Mertz suggested that AI could help improve operational efficiency, particularly in customer service. While Airbnb has not explicitly stated whether AI will impact job numbers, Mertz hinted at potential cost savings in payment processing and customer support.
โIn terms of 2025 and the outlook there, I would say there are incremental opportunities across our variable costs,โ Mertz told investors. โAreas like payment processing and customer service offer opportunities to be more efficient and expand our margins.โ
With AI poised to enhance customer support and internal operations, Airbnb remains optimistic about the future role of technology in travel. However, AI-powered trip planning remains on hold for now as the company focuses on refining its customer service capabilities.
