Life, has been changed. Increasingly intelligent ai has given people better choices among food, clothing, and shelter through a wide variety of lifestyle software. These daily consumptions have made the sharing economy has become a powerful force, disrupting established business models and fostering a culture of collaboration and shared resources (David 2023). Most of people’s choices when traveling are either buses and trains or taxis, and people are more inclined to book on the internet in terms of choosing accommodations, which triggered me to wonder about how AI can efficiently filter on sharing economy platforms. In the era of the sharing economy, these platforms like uber and airbnb that efficiently connect service providers and users break down some of the previous barriers in (Mostafa 2023).
How the sharing economy works
“World Economic Forum Annual Meeting Davos 2007” by World Economic Forum is licensed under CC BY-NC-SA 2.0.
Sharing economy is a cool way of getting what you need by either renting, sharing, buying, or swapping goods and services with others (Sundararajan, 2016). Think of it as a giant interactive space created by sharing economy platforms, where folks like Uber drivers share their cars, and Airbnb hosts share their homes for short stays (Australian Government, 2023).
Now, let’s talk about the role of Artificial Intelligence (AI) in this whole setup. AI is like the unsung hero in the sharing economy, making sure things run smoothly and safely. It’s the brain that dives deep into the data ocean, predicting what people need and when they need it, helping service providers and users find their perfect match. Take Uber, for instance. Its AI is like a crystal ball, foreseeing when and where people will need rides, directing drivers to those spots to meet the demand. And pricing? That’s where AI shines, too. It keeps an eye on the market in real-time, adjusting prices to attract more drivers during busy times and offering users better deals when things are slow. What’s even cooler is how AI watches over transactions and user behaviors like a guardian, keeping scams and shady activities at bay. In this way, AI ensures that the sharing economy isn’t just about sharing; it’s also about trusting and trading with confidence.
Uber in sharing economy
“Best Buy Car Show” by CAHairyBear is licensed under CC BY-NC-SA 2.0.
Through the deployment of sophisticated artificial intelligence algorithms, Uber has crafted a responsive and efficient system that seamlessly aligns the immediate travel necessities of potential riders with available drivers in proximity. This integration proves pivotal for individuals requiring urgent transportation services. Upon initiation of the Uber application, the embedded AI functionalities instantaneously identify and suggest nearby drivers to users, irrespective of their geographical locations. This immediate response mechanism is underpinned by the AI system’s continuous execution of complex computations and analyses. The system meticulously considers various dynamic factors in real-time, including the spatial coordinates of drivers, specific requirements articulated by users, prevailing traffic conditions, and anticipated duration of travel, orchestrating an optimal pairing of drivers and users.
In response to the oscillating demands characteristic of different temporal windows, Uber has institutionalized a dynamic pricing strategy facilitated by AI. This strategic pricing framework not only ensures that drivers are remunerated fairly during periods characterized by heightened demand but also guarantees that riders incur lower costs under conditions of diminished demand, thereby offering an economical travel alternative. The dynamic pricing mechanism substantially enhances the user travel experience by making shared transportation more economically accessible and attractive. AI’s precise demand forecasting enables Uber to proactively adjust the supply of drivers, ensuring timely vehicle availability for every rider, significantly reducing waiting times, and elevating overall operational efficiency and user satisfaction. Through the astute application of AI, Uber not only demystifies the process of procuring ride services but also offers users a secure and cost-effective travel option. The ingenious utilization of AI has expedited the propagation and development of the sharing economy model within the transportation sector, yielding substantial convenience and value to the quotidian lives of individuals globally.
ai and the sharing economy in aribnb
“House Renting, Buying, Selling Contract” by MarkMoz12 is licensed under CC BY 2.0.
Airbnb is a pioneer in the lodging industry, with a platform that allows consumers to rent out their homes or spare rooms to travelers seeking unique and personalized experiences. By unlocking the potential of unused space, Airbnb disrupts the hospitality industry by allowing homeowners to become landlords while providing travelers with more authentic and affordable options than traditional hotels (David 2023).
An intelligent search and recommendation system is essential in order to reduce the risk of customers being faced with too many choices.Airbnb’s AI system analyzes a user’s search history, browsing behavior, and booking history to understand their unique travel needs and preferences. It then algorithmically pushes listings that meet the user’s expectations, thereby personalizing the service, streamlining the user’s decision-making process, and accelerating the completion of the transaction. This is why many people feel like they are being ‘spied on’ by big data, it’s an ai in the thick oh too analyze this customer favorite behavior (Mostafa 2023).
This is also the key to the success of the sharing economy, the right pricing strategy. airbnb’s AI not only analyzes real-time market demand, but also takes into account multiple factors such as uniqueness of listings, location, seasonality, and user ratings to achieve dynamic and accurate pricing. This pricing strategy not only helps hosts discover the optimal price point, but also provides travelers with competitive accommodation solutions.
In the sharing economy, it is critical to provide timely and effective customer support. airbnb CEO and co-founder Brian Chesky mentioned in an interview the importance of using ai, artificial intelligence is very effective in answering some of the mechanic’s questions, but this is not what airbnb would like to see, they would like to see the thermal intelligence in the reply to the information more real and reasonable (the company’s “AI”), but also in the “AI”, “Ai” and “Ai”. aspect more genuine and reasonable (Ali 2023).
Through innovative AI practices, Airbnb demonstrates how to provide personalized, safe and efficient services within the framework of the sharing economy. Through intelligent applications in a number of areas, including personalized recommendations, dynamic pricing, fraud prevention and automated customer service, AI technology provides strong support and security for Airbnb’s sharing economy model.
Opportunities and challenges brought by ai
“Artificial Intelligence & AI & Machine Learning” by mikemacmarketing is licensed under CC BY 2.0.
The sharing economy model, epitomized by giants like Uber and Airbnb, has opened up a world of opportunity, but it also faces significant challenges that require a careful balancing act. The model, while revolutionary, has encountered legal hurdles globally, ranging from hefty fines to outright bans on services, highlighting the need for adaptability and thoughtful leadership in murky regulatory waters. However, these challenges are not insurmountable. As people increasingly embrace remote work, online transactions, and sustainable consumption in the post-pandemic era, the bright future of the sharing economy is hinted at. As MIT entrepreneurship mentor Terence Mauri points out, this evolution underscores the importance of developing and mastering a sustainable sharing economy business strategy now (Laker 2023). However, sharing economy companies must proceed with caution and pay attention to the debate surrounding the status of casual workers as employees or independent contractors, a categorization that affects workers’ well-being, safety, and job security. This situation raises an important dilemma, as sharing economy business models, while innovative, raise concerns about regulatory compliance, quality and trust assurances, worker protections, accessibility, and the potential for inequality and exploitation due to regulatory failures. Therefore, in the bright future of the sharing economy, it is the responsibility of leaders and stakeholders to ensure that this novel business model not only benefits employees, but also makes a significant contribution to sustainable development. With the right policies and regulations in place, a sharing economy that is fair, sustainable, and benefits all is indeed a realistic and achievable vision (David 2023). By understanding the pros and cons of the sharing economy, individuals and policymakers can maximize benefits while addressing the challenges, and balancing innovation, regulation, and consumer protection is critical to the sustainable growth and social impact of the sharing economy.
Sundararajan, A. (2016). The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism. MIT Press.
Mostafa Nagaty (2023) ‘The Rise of the Sharing Economy: A Big Data Success Story’ https://www.linkedin.com/pulse/rise-sharing-economy-big-data-success-story-mostafa-nagaty
Ziru Li (2023) ‘Understanding the sharing economy’ https://thunderbird.asu.edu/thought-leadership/insights/understanding-sharing-economy
Ausrtalian Government (2023) Types of activities in the sharing economy https://www.ato.gov.au/General/Sharing-economy-and-tax/Types-of-activities-in-the-sharing-economy/
David Schmidt（2023。07.19）‘Revolutionizing Business Models: How Airbnb and Uber Are Leading the Sharing Economy Movement’ https://medium.com/areas-producers/revolutionizing-business-models-how-airbnb-and-uber-are-leading-the-sharing-economy-movement-ff4b0e71956f
Ali, R. (2023, May 3). Interview: Airbnb CEO On How Its Service Will Radically Change With AI, By Next Year. Skift. https://skift.com/2023/05/03/interview-airbnb-ceo-on-how-its-service-will-radically-change-with-ai-by-next-year/ 、
Laker, B. (2023, July 6). Redefining Leadership: The Rise And Evolution Of The Sharing Economy. Forbes. Retrieved from https://www.forbes.com/sites/benjaminlaker/2023/07/06/redefining-leadership-the-rise-and-evolution-of-the-sharing-economy/?sh=294706dd1b3f