If you rented out your property for a few nights and then came back to discover that it was the scene of a wild house party, how would you feel? You would be furious, upset, or both as you gazed in shock at the devastation to your belongings.

In recent years, several reports from all around the world have described such events, particularly during the coronavirus epidemic. After bars and nightclubs closed, young folks in particular looked for alternative places to hang out, dance, and maybe overindulge in alcohol.

The largest provider of short-term rentals, Airbnb, responded by announcing a “global party ban” and promising to take all necessary measures to stop such activity.

This includes excluding under-25s who didn’t have a track record of stellar evaluations and prohibiting offenders from making new reservations.

According to a recent statement by Airbnb, the number of reported parties fell by 55% between 2020 and the previous year as a result of its crackdown. However, because the fight is far from over, the American company has raised the stakes and unveiled a software solution driven by artificial intelligence (AI) to assist in filtering out possible troublemakers.

The AI, which is already operational worldwide, checks for a number of factors when you attempt to make an Airbnb reservation, including how recently you registered your account and—a major red flag—whether you are attempting to rent a house in the same town or city as your residence.

It also raises concerns about how long you expect to stay—one night might not be long enough—and if your visit is scheduled during a time when there will be a lot of partying, like Halloween or New Year’s Eve.

“If someone is booking a room during New Year’s Eve for one night only, and they are from the same city as the host, that’s likely to be a party,” says Naba Banerjee, head of safety and trust at Airbnb.

Banerjee continues, “If the AI determines that there is an excessive risk of a party booking, it will either stop the booking or direct the user to the website of one of its partner hotel companies.” She claims that people who use Airbnb to rent out their houses should feel as secure as possible because it is a matter of trust.

One such individual is Lucy Paterson. Since listing the one-bedroom annexe next to her Worcestershire home for rent, she has received over 150 reservations.

“Part of my planning to be an Airbnb host is that I have only a one-bedroom place, to minimise the potential for parties,” she says. “Of course it hasn’t always been perfect, but I’d say 99% of my guests have been fantastic.”

She continues, saying she feels “more reassurance” because of Airbnb’s increased usage of AI.

According to Ms. Banerjee, artificial intelligence will only continue to advance since it will learn more as it processes more data.

One of the largest online markets for car sharing, Turo, also employs artificial intelligence (AI) to safeguard users who rent out their vehicles to third parties.

The programme, a platform known as DataRobot AI, has the ability to identify a theft danger fast. In addition, it determines the cost of cars based on factors like size, power, and speed as well as the time of day or week that a customer wants to start their rental.

Turo also employs AI in a different way, enabling certain users to communicate with its app and tell it what car they want and when. The AI will then respond by displaying text on the screen and recommending a customised list of cars that fit the requirements. Customers of the well-liked consumer AI system ChatGPT-4, which is integrated into Turo’s system, can currently utilise this service.

“We want to make it easy to browse Turo, and that can help build trust between us and our customers,” says the firm’s chief data officer Albert Mangahas.

According to Edward McFowland III, an assistant professor of technology and operating management at Harvard Business School, it makes sense to use AI to weed out possible troublesome clients. “Having that layer of AI can help ease the friction on both sides, for both business and consumer.”

However, he makes the point that even an AI model with perfect calibration might produce false negatives, such as rejecting a young person who wants to rent a flat for New Year’s Eve but doesn’t plan to have a party. “And that’s why AI technology is still very hard to get right, all the time.”

Lara Bozabalian uses Airbnb to rent out her family’s 3,000 square foot (280 square metre) cottage in Toronto, Canada.

She claims that she always goes by her own rules, regardless of how appealing the booking may be or what the AI has decided.

“I don’t take on clients who are first-time users. I need to know they’ve been vetted by someone at some point.”

(Adapted from CNBC.com)

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