Airbnb Adopts Artificial Intelligence
It's no exaggeration when I say artificial intelligence (AI) is everywhere. With that said, it's just the beginning for this emerging technology.
And even though it's only starting out, there's already a long list of companies that have begun adopting the technology into their businesses. And it's because the market is growing exponentially. The tech is set to be the backbone of all future successful companies. Adding AI to a company's business model will enhance and grow that company into the future.
So, it comes as no surprise that Airbnb, a high-valued startup that operates an online marketplace and hospitality service, has announced it's incorporating AI into its business model to improve its platform for its users...
Building Stronger Companies With AI
The San Francisco startup offers an online booking platform for more than 5 million property listings. That's in addition to tens of thousands of tours, hikes, and other travel experience offers. You may have heard a friend say they booked an Airbnb for their weekend trip to a new city.
I've used Airbnb before, and it's always been easy and convenient. But Airbnb wants to make it even easier and more convenient for its users to find their perfect accommodations. And the company believes AI will lend a huge hand to improving its search platform.
Airbnb realized that AI could benefit the company in a big way. So, its researchers moved forward with the integration of AI into the company's already established platform. And it's an improvement that the company desperately needed.
Researchers at Airbnb published a paper on the preprint server arXiv. In the report, the researchers say:
The application to search ranking is one of the biggest machine learning success stories at Airbnb. Much of the initial gains were driven by a gradient boosted decision tree model. The gains, however, plateaued over time. This paper discusses the work done in applying neural networks in an attempt to break out of that plateau.
Airbnb had success with its AI integrations at first but is now looking for a new way to incorporate AI to improve its home bookings. And it's bookings are what the business is based on. If listings aren't helpful to users, then Airbnb will remain at its plateau instead of growing...
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AI Will Help Airbnb Grow
But Airbnb doesn't rely on just one AI system. It has an entire "ecosystem" of algorithms that predict the likelihood of a host accepting a guest's booking request and of a guest giving a trip or experience a high rating. The ecosystem is trained through user interactions. All searches are logged, and each AI model has access to them. The new models, once trained, are tested to see if they experience a significant increase in bookings.
Everything is a learning experience. Airbnb and every other company that incorporates AI into its business will realize this. But that's okay. Now is the time to test out the technology and its abilities.
The AI market is expected to exceed $191 Billion by 2024. That's a compound annual growth rate (CAGR) of 37%.
The market is growing. So, investing in AI technology as an investor or as a company will only benefit your future.
Until next time,
Editorial Director, Park Avenue Digest