AI agents aren’t the ‘new Google,’ says Airbnb CEO

Airbnb CEO Brian Chesky has cautioned investors against viewing AI agents and chatbots as a direct replacement for Google search, despite the company’s own integration of AI technologies. Following a strong second-quarter earnings report where Airbnb surpassed expectations, Chesky elaborated on the nuances of AI’s role in the travel industry.

“I think we’re still kind of feeling out the space,” Chesky stated during the Q2 earnings call. “The thing I want to caution is I don’t think that AI agents — I don’t think we should think of chatbots like Google — I don’t think we should think of them as the ‘new Google’ yet.”

Chesky explained that a primary reason for this distinction is the non-proprietary nature of many AI models currently powering these tools. “We also have to remember that the model powering ChatGPT is not proprietary. It’s not exclusive to ChatGPT. We — Airbnb — can also use the API, and there are other models that we can use,” he noted.

He further emphasized that the future of AI in business lies not just in having advanced models, but in the ability to customize them for specific applications. “One of the things we’ve noticed is it’s not enough to just have… the best model. You have to be able to tune the model and build a custom interface for the right application. And I think that’s the key,” Chesky added.

Airbnb is actively leveraging AI to enhance user experience and operational efficiency. The company reported that its AI-powered customer service agent in the U.S. has successfully reduced the percentage of guests needing to contact a human agent by 15%. Chesky highlighted that implementing AI for customer service was more challenging than for travel planning, as these agents cannot afford to “hallucinate” and must maintain accuracy and helpfulness at all times.

This customer service AI was developed using 13 different models and trained on tens of thousands of conversations. Currently operational in English within the U.S., Airbnb plans to expand its availability to more languages this year. Next year, the agent is expected to become more personalized and “agentic,” capable of handling tasks like processing reservation cancellations directly or assisting with trip planning and bookings. Additionally, AI is slated to be integrated into Airbnb’s search functionality next year.

While Airbnb is exploring potential integrations with third-party AI agents, a user Airbnb account will remain necessary for bookings. Chesky views AI as a significant opportunity for “potentially interesting lead generation,” rather than a force that will commoditize the booking process, likening the latter to how flight bookings have evolved.

“I think the key thing is going to be for us to lead and become the first place for people to book travel on Airbnb. As far as whether or not we integrate with AI agents, I think that’s something that we’re certainly open to,” he concluded.

Airbnb reported robust Q2 results, with revenue reaching $3.1 billion and earnings per share at $1.03, beating analyst expectations. However, the company’s stock experienced a dip following its forecast for slower growth in the latter half of the year, renewing concerns about potential shifts in travel demand.