Connect with us

Published

on

Naba Banerjee, Airbnb

Source: Prashant Joshi | Airbnb

Naba Banerjee is a proud party pooper. 

As the person in charge of Airbnb’s worldwide ban on parties, she’s spent more than three years figuring out how to battle party “collusion” by users, flag “repeat party houses” and, most of all, design an anti-party AI system with enough training data to halt high-risk reservations before the offender even gets to the checkout page. 

It’s been a bit like a game of whack-a-mole: Whenever Banerjee’s algorithms flag some concerns, new ones pop up.

Airbnb defines a party as a gathering that occurs at an Airbnb listing and “causes significant disruption to neighbors and the surrounding community,” according to a company rep. To determine violations, the company considers whether the gathering is an open-invite one, and whether it involves excessive noise, trash, visitors, parking issues for neighbors, and other factors.

Bannerjee joined the company’s trust and safety team in May 2020 and now runs that group. In her short time at the company, she’s overseen a ban on high-risk reservations by users aged 25 and under, an pilot program for anti-party AI in Australia, heightened defenses on holiday weekends, a host insurance policy worth millions of dollars, and this summer, a global rollout of Airbnb’s reservation screening system. 

Some measures have worked better than others, but the company says party reports dropped 55% between August 2020 and August 2022 — and since the worldwide launch of Banerjee’s system in May, more than 320,000 guests have been blocked or redirected from booking attempts on Airbnb.

Overall, the company’s business is getting stronger as the post-pandemic travel boom starts to fade. Last month, the company reported earnings that beat analysts’ expectations on earnings per share and revenue, with the latter growing 18% year-over-year, despite fewer-than-expected number of nights and experiences booked via the platform. 

Turning parental party radar into an algorithm

Courtesy: Airbnb

Airbnb says the pandemic and hosts’ fears of property damage are the main drivers behind its anti-party push, but there have been darker incidents as well.

A Halloween party at an Airbnb in 2019 left five people dead. This year between Memorial Day and Labor Day weekends, at least five people were killed at parties hosted at Airbnbs. In June, the company was sued by a family who lost their 18-year-old son in a shooting at a 2021 Airbnb party. 

When Banerjee first joined Airbnb’s trust team in summer 2020, she recalls people around her asking, “How do you solve this problem?” The stream of questions, from people above and below her on the corporate ladder, contributed to her anxiety. Airbnb’s party problem was complex, and in some ways, she didn’t know where to start. 

As a mother of five, Banerjee knows how to sniff out a secretive shindig. 

Last summer, Banerjee’s 17-year-old daughter had a friend who wanted to throw an 18th birthday party – and she was thinking about booking an Airbnb to do it. Banerjee recalls her daughter telling her about the plan, asking her whether she should tell her friend not to book an Airbnb because of the AI safeguards. The friend ended up throwing the party at her own home.

“Being a mother of teenagers and seeing teenage friends of my kids, your antenna is especially sharp and you have a radar for, ‘Oh my God, okay, this is a party about to happen,” Banerjee said. “Between our data scientists and our machine learning engineers and us, we started looking at these signals.”

For Banerjee, it was about translating that antenna into a usable algorithm. 

In an April 2020 meeting with Nate Blecharczyk, the company’s co-founder and chief strategy officer, Banerjee recalls strategizing about ways to fix Airbnb’s party problem on three different time scales: “right now,” within a year, and in the general future.

For the “right now” scale, they talked about looking at platform data, studying the patterns and signals for current party reports, and seeing how those puzzle pieces align. 

The first step, in July 2020, was rolling out a ban on high-risk reservations by users under the age of 25, especially those who either didn’t have much history on the platform or who didn’t have good reviews from hosts. Although Airbnb says that blocked or redirected “thousands” of guests globally, Banerjee still saw users trying to get around the ban by having an older friend or relative book the reservation for them. Two months later, Airbnb announced a “global party pan,” but that was mostly lip service – at least, until they had the technology to back it up. 

Around the same time, Banerjee sent out a series of invitations. Rather than to a party, they were invites to attend party risk reduction workshops, sent to Airbnb designers, data scientists, machine learning engineers and members of the operations and communications teams. In Zoom meetings, they looked at results from the booking ban for guests under age 25 and started putting further plans in motion: Banerjee’s team created a 24/7 safety line for hosts, rolled out a neighborhood support line, and decided to staff up the customer support call center.

One of the biggest takeaways, though, was to remove the option for hosts to list their home as available for gatherings of more than 16 people.

Courtesy: Airbnb

Now that they had a significant amount of data on how potential partiers might act, Banerjee’s had a new goal: Build the AI equivalent of a neighbor checking on the house when the high-schooler’s parents leave them home alone for the weekend. 

Around January 2021, Banerjee recalled hearing from Airbnb’s Australia offices that disruptive parties at Airbnbs were up and coming, just like they were in North America, as travel had come to a relative standstill and Covid was in full swing. Banerjee considered rolling out the under-25 ban in Australia, but after chatting with Blecharczyk, she decided to experiment with a party-banning machine learning model instead.

But Banerjee was nervous. Soon after, she phoned her father in Kolkata, India – it was between 10pm and 11pm for her, which was mid-morning for him. As the first female engineer in her family, Banerjee’s father is one of her biggest supporters, she said, and typically the person she calls during the most difficult moments of her life. 

Banerjee said, “I remember talking to him saying, ‘I’m just very scared – I feel like I’m on the verge of doing one of the most important things of my career, but I still don’t know if we are going to succeed, like we have the pandemic going on, the business is hurting… We have something that we think is going to be great, but we don’t know yet. I’m just on this verge of uncertainty, and it just makes me really nervous.'” 

Banerjee recalled her father telling her that this has happened to her before and that she’d succeed again. He’d be more worried, he told her, if she was overconfident. 

In October 2021, Banerjee’s team rolled out the pilot program for their reservation screening AI in Australia. The company saw a 35% drop in parties between regions of the country that had the program versus those that did not. The team spent months analyzing the results and upgraded the system with more data, as well as safety and property damage incidents and records of user collusion.

How the AI system works to stop parties

Listings on Airbnb

Source: Airbnb

Imagine you’re a 21-year-old planning a Halloween party in your hometown. Your plan: Book an Airbnb house for one night, send out the “BYOB” texts and try to avoid posting cliched Instagram captions. 

There’s just one problem: Airbnb’s AI system is working against you from the second you sign on. 

The party-banning algorithm looks at hundreds of factors: the reservation’s closeness to the user’s birthday, the user’s age, length of stay, the listing’s proximity to where the user is based, how far in advance the reservation is being made, weekend vs. weekday, the type of listing and whether the listing is located in a heavily crowded location rather than a rural one. 

Deep learning is a subset of machine learning that uses neural networks – that is, the systems process information in a way inspired by the human brain. The systems are certainly not functionally comparable to the human brain, but they do follow the pattern of learning by example. In the case of Airbnb, one model focuses specifically on the risk of parties, while another focuses on property damage, for instance. 

“When we started looking at the data, we found that in most cases, we were noticing that these were bookings that were made extremely last-minute, potentially by a guest account that was created at the last minute, and then a booking was made for a potential party weekend such as New Year’s Eve or Halloween, and they would book an entire home for maybe one night,” Banerjee told CNBC. “And if you looked at where the guest actually lived, that was really in close proximity to where the listing was getting booked.” 

After the models do their analysis, the system assigns every reservation a party risk. Depending on the risk tolerance that Airbnb has assigned for that country or area, the reservation will either be banned or greenlit. The team also introduced “heightened party defenses” for holiday weekends such as the Fourth of July, Halloween and New Year’s Eve. 

Source: Airbnb

In some cases, like when the right decision isn’t quite clear, reservation requests are flagged for human review, and those human agents can look at the message thread to gauge party risk. But the company is also “starting to invest in a huge way” in large language models for content understanding, to help understand party incidents and fraud, Banerjee said. 

“The LLM trend is something that if you are not on that train, it’s like missing out on the internet,” Banerjee told CNBC. 

Banerjee said her team has seen a higher risk of parties in the U.S. and Canada, and the next-riskiest would probably be Australia and certain European countries. In Asia, reservations seem to be considerably less risky. 

The algorithms are trained partly on tickets labeled as parties or property damage, as well as hypothetical incidents and past ones that occurred before the system went live to see if it would have flagged them. They’re also trained on what “good” guest behavior looks like, such as someone who checks in and out on time, leaves a review on time, and has no incidents on the platform. 

But like many forms of AI training data, the idea of “good” guests is ripe for bias. Airbnb has introduced anti-discrimination experiments in the past, such as hiding guests’ photos, preventing hosts from viewing a guest’s full name before the booking is confirmed, and introducing a Smart Pricing tool to help address earnings disparities, although the latter unwittingly ended up widening the gap

Airbnb said its reservation-screening AI has been evaluated by the company’s anti-discrimination team and that the company often tests the system in areas like precision and recall. 

Going global

Courtesy: Airbnb

Almost exactly one year ago, Banerjee was at a plant nursery with her husband and mother-in-law when she received a call from Airbnb CEO Brian Chesky. 

She thought he’d be calling about the results of the Australia pilot program, but instead he asked her about trust in the platform. Given all the talk she did about machine learning models and features, she recalled him asking her, would she feel safe sending one of her college-bound kids to stay at an Airbnb – and if not, what would make her feel safe? 

That phone call ultimately resulted in the decision to expand Banerjee’s team’s reservation screening AI worldwide the following spring. 

Things kicked into high gear, with TV spots for Banerjee, some of which she spotted in between pull-ups on the gym television. She asked her daughter for advice on what to wear. The next thing she knew, the team was getting ready for a live demo of the reservation screening AI with Chesky. Banerjee was nervous.

Last fall, the team sat down with Chesky after working with front-end engineers to create a fake party risk, showing someone booking an entire mansion during a holiday weekend at the last minute and seeing if the model would flag it in real-time. It worked.

Chesky’s only feedback, Banerjee recalled, was to change the existing message – “Your reservation cannot be completed at this point in time because we detect a party risk” – to be more customer-friendly, potentially offering an option to appeal or book a different weekend. They followed his advice. Now, the message reads, “The details of this reservation indicate it could lead to an unauthorized party in the home. You still have the option to book a hotel or private room, or you can contact us with any questions.”

Over the next few months, Banerjee remembers a frenzy of activity but also feeling calm and confident. She went to visit her family in India in April 2023 for the first time in about a year. She told her father about the rollout excitement, which happened in batches the following month.

This past Labor Day, Banerjee was visiting her son in Texas as the algorithm blocked or redirected 5,000 potential party bookings.

But no matter how quickly the AI models learn, Banerjee and her team will need to continue to monitor and change the systems as party-inclined users figure out ways around the barriers. 

“The interesting part about the world of trust and safety is that it never stays static,” Banerjee said. “As soon as you build a defense, some of these bad actors out there who are potentially trying to buck the system and throw a party, they will get smarter and they’ll try to do something different.” 

Continue Reading

Technology

Australia is trying to enforce the first teen social media ban. Governments worldwide are watching.

Published

on

By

Australia is trying to enforce the first teen social media ban. Governments worldwide are watching.

In this photo illustration, iPhone screens display various social media apps on the screens on February 9, 2025 in Bath, England.

Anna Barclay | Getty Images News | Getty Images

Australia on Wednesday became the first country to formally bar users under the age of 16 from accessing major social media platforms, a move expected to be closely monitored by global tech companies and policymakers around the world.

Canberra’s ban, which came into effect from midnight local time, targets 10 major services, including Alphabet‘s YouTube, Meta’s Instagram, ByteDance’s TikTok, Reddit, Snapchat and Elon Musk’s X.

The controversial rule requires these platforms to take “reasonable steps” to prevent underage access, using ageverification methods such as inference from online activity, facial estimation via selfies, uploaded IDs, or linked bank details.

All targeted platforms had agreed to comply with the policy to some extent. Elon Musk’s X had been one of the last holdouts, but signaled on Wednesday that it would comply. 

The policy means millions of Australian children are expected to have lost access to their social accounts. 

However, the impact of the policy could be even wider, as it will set a benchmark for other governments considering teen social media bans, including Denmark, Norway, France, Spain, Malaysia and New Zealand. 

Controversial rollout

Ahead of the legislation’s passage last year, a YouGov survey found that 77% of Australians backed the under-16 social media ban. Still, the rollout has faced some resistance since becoming law.

Supporters of the bill have argued it safeguards children from social media-linked harms, including cyberbullying, mental health issues, and exposure to predators and pornography. 

Among those welcoming the official ban on Wednesday was Jonathan Haidt, social psychologist and author of The Anxious Generation, a 2024 best-selling book that linked a growing mental health crisis to smartphone and social media usage, especially for the young.

Social media platforms have too much power and nothing is being done about it: Niall Ferguson

In a post on social media platform X, Haidt commended policymakers in Australia for “freeing kids under 16 from the social media trap.”

“There will surely be difficulties in the early months, but the world is rooting for your success, and many other nations will follow,” he added. 

On the other hand, opponents contend that the ban infringes on freedoms of expression and access to information, raises privacy concerns through invasive age verification, and represents excessive government intervention that undermines parental responsibility.

Those critics include groups like Amnesty Tech, which said in a statement Tuesday that the ban was an ineffective fix that ignored the rights and realities of younger generations.

“The most effective way to protect children and young people online is by protecting all social media users through better regulation, stronger data protection laws and better platform design,” said Amnesty Tech Programme Director Damini Satija.

Dr. Vivek Murthy: Social media is one of the key drivers of our youth mental health crisis today

Meanwhile, David Inserra, a fellow for free expression and technology at the Cato Institute, warned in a blog post that children would evade the new policy by shifting to new platforms, private apps like Telegram, or VPNs, driving them to “more isolated communities and platforms with fewer protections” where monitoring is harder.

Tech companies like Google have also warned that the policy could be extremely difficult to enforce, while government-commissioned reports have pointed to inaccuracies in ageverification technology, such as selfie-based ageguessing software. 

Indeed, on Wednesday, local reports in Australia indicated that many children had already bypassed the ban, with age-assurance tools misclassifying users, and workarounds such as VPNs proving effective.

However, Australian Prime Minister Anthony Albanese had attempted to preempt these issues, acknowledging in an opinion piece on Sunday that the system would not work flawlessly from the start, likening it to liquor laws.

“The fact that teenagers occasionally find a way to have a drink doesn’t diminish the value of having a clear national standard,” he added.

Experts told CNBC that the rollout is expected to continue to face challenges and that regulators would need to take a trial-and-error approach. 

“There’s a fair amount of teething problems around it. Many young people have been posting on TikTok that they successfully evaded the age limitations and that’s to be expected,” said Terry Flew, a professor of digital communication and culture at the University of Sydney. 

“You were never going to get 100% disappearance of every person under the age of 16 from every one of the designated platforms on day one,” he added.

Global implications

Experts told CNBC that the policy rollout in Australia will be closely watched by tech firms and lawmakers worldwide, as other countries consider their own moves to ban or restrict teen social media usage. 

“Governments are responding to how public expectations have changed about the internet and social media, and the companies have not been particularly responsive to moral suasion,” said Flew. 

“We see similar pressures are emerging, particularly, but not exclusively in Europe,” he added.  

The European Parliament passed a non-binding resolution in November advocating a minimum age of 16 for social media access, allowing parental consent for 13 to 15-year-olds. 

The bloc has also proposed banning addictive features such as infinite scrolling and auto-play for minors, which could lead to EU-wide enforcement against non-compliant platforms.

Pinterest CEO on using AI to reduce social media harms

Outside Europe, Malaysia and New Zealand have also been advancing proposals to ban social media for children under 16.

However, laws elsewhere are expected to differ from Australia’s, whether that be regarding age restrictions or age verification processes. 

“My hope is that countries that are looking at implementing similar policies will monitor for what doesn’t work in Australia and learn from our mistakes,” said Tama Leaver, professor at the Department of Internet Studies at Curtin University and a Chief Investigator in the ARC Centre of Excellence for the Digital Child.

“I think platforms and tech companies are also starting to realize that if they don’t want age-gating policies everywhere, they’re going to have to do much better at providing safer, appropriate experiences for young users.”

Continue Reading

Technology

CNBC Daily Open: A Fed rate cut might not be festive enough

Published

on

By

CNBC Daily Open: A Fed rate cut might not be festive enough

An eagle sculpture stands on the facade of the Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S., on Friday, Nov. 18, 2016.

Andrew Harrer | Bloomberg | Getty Images

On Wednesday stateside, the U.S. Federal Reserve is widely expected to lower its benchmark interest rates by a quarter percentage point to a range of 3.5%-3.75%.

However, given that traders are all but certain that the cut will happen — an 87.6% chance, to be exact, according to the CME FedWatch tool — the news is likely already priced into stocks by the market.

That means any whiff of restraint could weigh on equities. In fact, the talk in the markets is that the Fed might deliver a “hawkish cut”: lower rates while suggesting it could be a while before it cuts again.

The “dot plot,” or a projection of where Fed officials think interest rates will end up over the next few years, will be the clearest signal of any hawkishness. Investors will also parse Chair Jerome Powell’s press conference and central bankers’ estimates for U.S. economic growth and inflation to gauge the Fed’s future rate path.

In other words, the Fed could rein in market sentiment even if it cuts rates. Perhaps end-of-year festivities might be muted this year.

What you need to know today

And finally…

Researchers inside a lab at the Shenzhen Synthetic Biology Infrastructure facility in Shenzhen, China, on Wednesday, Nov. 26, 2025.

Bloomberg | Bloomberg | Getty Images

U.S.-China AI talent race heats up

When it comes to brain power, “America’s edge is deteriorating dangerously,” Chris Miller, author of the book “Chip War: The Fight for the World’s Most Critical Technology,” told a U.S. Senate Foreign Relations subcommittee last week. It’s a lead that’s “fragile and much smaller” than its advantage in AI chips, he said.

Part of the difference comes from the sheer scale, especially as education levels rise in China. Its population is four times that of the U.S., and the same goes for the volume of science, technology, engineering and mathematics graduates. In 2020, China produced 3.57 million STEM graduates, the most of any country, and far outpacing the 820,000 in the U.S.

— Evelyn Cheng

Continue Reading

Technology

CEO of South Korean online retail giant Coupang resigns over data breach

Published

on

By

CEO of South Korean online retail giant Coupang resigns over data breach

Park Dae-jun, CEO of South Korean online retail giant Coupang has resigned, three weeks after the company became aware of a massive data breach that affected nearly 34 million customers.

Coupang

The CEO of South Korean online retail giant Coupang Corp. resigned Wednesday, three weeks after the company became aware of a massive data breach that affected nearly 34 million customers.

Coupang said CEO Park Dae-jun resigned due to the data breach incident — which was revealed on Nov. 18 — according to a Google translation of the statement in Korean.

“I am deeply sorry for disappointing the public with the recent personal information incident,” Park said, adding, “I feel a deep sense of responsibility for the outbreak and the subsequent recovery process, and I have decided to step down from all positions.”

Following his resignation, parent company Coupang Inc. appointed Harold Rogers, the Chief Administrative Officer and General Counsel, as interim CEO.

Coupang said that Rogers plans to “focus on alleviating customer anxiety caused by the personal information leak” and to stabilize the organisation.

Park, who joined the company in 2012, became Coupang’s sole CEO in May, after the company transitioned away from a dual-CEO system.

According to Coupang, he was responsible for the company’s innovative new business and regional infrastructure development, and led projects to expand sales channels for small and medium enterprises, among others.

South Korean companies are known for being “very, very cost-efficient,” which may have led to neglecting areas like cybersecurity, Peter Kim, managing director at KB Securities, told CNBC’s “Squawk Box Asia” Wednesday.

“I think the core issue here is that we’ve had a number of other breaches, not just Coupang, but previously, telecom companies in Korea,” Kim added. “I understand some data companies consider Korea to be [the] top three or four most breached on a data, on an IT security basis in the world.”

Coupang breach a ‘double-edged sword’ for Chinese rivals due to security concerns: KB Securities

South Korean companies have been hit by cybersecurity breaches before, including an April incident at mobile carrier SK Telecom that affected 23.24 million people. The country previously saw one of its largest cybersecurity incidents in 2011, when attackers stole over 35 million user details from internet platforms Nate and Cyworld.

Nate is one of the most popular search engines in South Korea, while Cyworld was one of the country’s largest social networking sites in the early 2000s.

Prime Minister Kim Min-seok reportedly said Wednesday that strict action would be taken against the company if violations of the law were found, according to South Korean media outlet Yonhap.

Police also raided the Coupang headquarters for a second day on Wednesday, continuing their investigation into the data breach.

Yonhap also reported, citing sources, that the police search warrant “specifies a Chinese national who formerly worked for Coupang as a suspect on charges of breaching the information and communications network and leaking confidential data.”

Last week, South Korean President Lee Jae Myung called for increased penalties on data breaches, saying that the Coupang data breach had served as a wake-up call.

— CNBC’s Chery Kang contributed to this report.

How Coupang grew into South Korea's biggest online retailer

Continue Reading

Trending