The insight: Airbnb opted against launching a third-party app integration with ChatGPT because it “didn’t think [the technology] was quite ready,” CEO Brian Chesky told Bloomberg.

While the company hasn’t ruled out joining the platform, its measured approach contrasts sharply with the enthusiasm of competitors like Expedia and Booking.com.

Slow but steady: Airbnb has yet to embed generative AI as deeply into its platform as its competition, but it is moving toward “becoming an AI-first application,” Chesky said during the company’s Q2 earnings call in August.

Its first major project uses genAI to improve customer service. The company rolled out an upgraded version of its AI-powered customer service assistant, which is now available in multiple languages (English, Spanish, and French) and in more countries (the US, Mexico, and Canada).

• The chatbot recognizes logged-in users and their reservations or listings to deliver faster, tailored responses.
• Customers can take direct action—such as canceling or changing bookings—within the app, reducing the need for human representatives and sharply cutting wait times.
• Since launching the AI assistant in the US, the number of customers requiring a live representative has decreased 15%, and average resolution time has been slashed from nearly three hours to a mere six seconds.

Our take: Airbnb is prudent to have reservations about OpenAI’s commerce capabilities. While chatbots could reshape travel discovery and booking, early reports indicate ChatGPT’s utility for now is hampered by a clunky, finicky interface that is more frustrating than helpful.

Rather than forge commerce partnerships with AI companies, Airbnb is focused on making its service an indispensable travel resource to keep its platform sticky.

• The company is adding more social features and improving discovery as it looks to become the first stop for people seeking travel inspiration, as well as accommodations and experiences.
• That strategy puts Airbnb closer in line with Amazon's efforts to protect its business from AI encroachment.

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