If you rented out your home for a few nights, how would you react to coming back and discovering it was the site of a loud and wild house party?
Upon gazing at the destruction done to your belongings, you could be a mix of both angry and sad.
Recently, there have been plenty of stories from around the globe, especially since the COVID-19 outbreak, about people congregating in other places than bars and clubs. Especially among teenagers and young adults, who have been seeking alternative spots for socializing, dancing and in some cases overindulging in alcoholic beverages.
The response of short-term rental giant Airbnb to the problem was a firm one - a "global party ban" - and a commitment to do all in its power to put a stop to it. Actions included preventing those responsible from making new bookings, as well as imposing restrictions on under 25s who had not previously been graded highly in user reviews.
Recently Airbnb reported that their crackdown resulted in a 55% decrease in reported parties from 2020 to 2021. To continue the battle, they have now introduced a new software system powered by artificial intelligence (AI) to identify possible troublemakers.
As it now stands, Airbnb operates across the globe and their automated AI system checks for certain criteria when you attempt to make a booking. A major indicator that raises suspicion is whether you are attempting to reserve a rental that is located in the same city/town you dwell in.
It inquires about the length of your stay - could it be just one night? - and if the trip is coinciding with an event such as Halloween or New Year's Eve that may involve more activity and crowds.
Naba Banerjee, head of safety and trust at Airbnb, says that if someone from the same city as the host is booking a room for just one night on New Year's Eve, then it is likely for a party.
Ms Banerjee states that the AI will block any bookings deemed to be high-risk or instead provide a referral to one of the partner hotels's site. She emphasizes that instilling trust is fundamental when it comes to people renting their homes out on Airbnb, and this is taken into careful consideration.
Lucy Paterson is an example of someone who has found success with renting out the one-bedroom annex located close to her home in Worcestershire. She has had an impressive 150 bookings since she first made it available.
"Considering I have a one-bedroom property, my plans to become an Airbnb host have been structured with the goal of avoiding parties," she states. "Though it has had its challenges, I can confidently say that almost all of my guests have been wonderful."
She states that the introduction of AI by Airbnb has provided her with additional confidence.
Ms Banerjee has indicated that the AI will become increasingly sophisticated as more data is processed, which will lead to further learning.
In the car sharing arena, an AI system is employed by one of the biggest online marketplaces, Turo, to safeguard people who rent out their automobiles.
DataRobot AI, a platform of software, can detect the threat of theft quickly. Also, it deduces the prices of cars based on their size, power, and speed, in addition to the day and/or time of week when a customer wants to start the rental.
Turo has incorporated AI technology which allows some users to communicate with the app and provide details about the type of car it wants and when. ChatGPT-4, a consumer AI system, will give a text-based response with a selection of cars tailored to the user's criteria. This is a feature exclusive to ChatGPT-4 subscribers.
Albert Mangahas, the firm's Chief Data Officer, expresses a desire to simplify the browsing experience on Turo, believing it will bring about greater trust between them and their customers.
Discover more reports about AI
Edward McFowland III, assistant professor of technology and operating management at Harvard Business School, has said that it is a smart move to utilize AI to distinguish between those customers who could cause possible issues. According to him, this layer of AI can both help the company and consumer alike, by diminishing friction.
He highlights, however, that even an AI model that is perfectly accurate can generate false negatives, for instance excluding someone who wishes to rent an apartment for New Year's Eve but has no plan to host a gathering. "This is why AI is so difficult to get precisely right, every time."
Lara Bozabalian in Toronto, Canada employs Airbnb to let her family's 3,000 sq ft (280sq m) cottage. She states that no matter how alluring the reservation might be, or what the AI has calculated, she follows her own regulation.
I don't accept any customers who are completely new to this. It's important for me to be confident that they have gone through some type of verification previously.
Comments