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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.” 

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Early Facebook investor Accel raises $650 million fund to back European and Israeli startups

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Early Facebook investor Accel raises 0 million fund to back European and Israeli startups

From left to right, Accel general partners Harry Nelis, Sonali de Rycker, Andrei Brasoveanu, Luca Bocchio, and Philippe Botteri.

Accel

Venture capital firm Accel said Tuesday it’s raised $650 million for its eighth fund targeted at investing in European and Israeli early-stage startups, in a sign the venture capital market may be showing signs of a recovery.

The firm, which made prolific early bets on the likes of social media app Facebook and music streaming service Spotify, said in a press release it raised the fund to “support ambitious founders building global category-defining companies” in Europe and Israel.

Harry Nelis, general partner at Accel, said the European tech ecosystem in particular has evolved drastically in the nearly 25 years since it opened up its London office as a separate fund in 2001.

“The environment has dramatically changed since then,” Nelis told CNBC. “People would ask us, can Europe generate $1 billion outcomes?”

“Now, there are more than 360 venture-backed unicorns across Europe and Israel, and the whole ecosystem has evolved from one that raised about $1 billion in capital to now $66 billion in 2023.”

Talent ‘flywheel’

Nelis said Europe is producing a more promising talent pool now thanks to a “flywheel” of experienced employees from other companies that have hit unicorn status becoming founders of new companies themselves.

A report released by the firm last year citing Dealroom data showed that employees of 248 venture-funded unicorns in the region have fueled 1,451 new tech startups across Europe and Israel.

Nelis noted that there are emerging geographies in Europe that investors aren’t paying as much attention to, but that are showing huge potential in technology innovation.

He called out Lithuania and Romania as examples of countries where major technology successes are emerging. In Lithuania, for example, secondhand marketplace Vinted is now a $4.5 billion “unicorn” company, while in Romania, UiPath has attracted a $10.9 billion valuation in the public markets.

Accel expects to invest in between 25 and 30 companies from its latest early-stage fund.

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Climate-focused VC firm World Fund closed a 300 million euro fund in March.

Magnus Grimeland, CEO of seed investor Antler, told CNBC earlier this year that early-stage venture activity and private company valuations have been inching up since the start of this year — and he expects Europe to follow the trend.

“It’s on its way back,” Grimeland said in an interview at Antler’s London office in March. “We see a lot more activity in the portfolio. In New York, we made eight investments in January, and seven of them already have follow-on investments. The U.S. tends to always act quicker.”

Europe’s AI opportunity

Even as startup funding has waned, though, excitement about artificial intelligence has led to a rush of capital flowing into startups focusing on AI.

For example, the likes of OpenAI, Anthropic and Cohere have raised billions of dollars.

Nelis suggested that Accel doesn’t want to get distracted and focus solely on a hyped area like AI with its latest fund.

Instead, he said, the firm will focus on using its “prepared mind” philosophy — which encourages deep focus and a disciplined and informed approach to investing — to approach its next startup bets.

“We’re lucky that with DeepMind here in London and with Fair [Facebook AI Research] in Paris, there’s at least two big centers that have great AI expertise,” Nelis told CNBC.

“Together with smaller centers across Europe, we think that Europe is extremely well-positioned to create some important AI companies, the same way we created important enterprise businesses.”

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Nelis said that the way Accel thinks about AI can be broken up into three layers: the “foundation model” layer, referring to algorithms underpinning advanced AI systems, the “tooling layer,” which helps applications that sit on top of these algorithms run, and the “application layer.”

He added that he thinks Europe will excel when it comes to AI application companies, as opposed to foundation models where U.S. technology giants have a big advantage.

“My expectation is Europe is going to generate some really interesting AI application companies,” Nelis told CNBC. “The foundation layer is a layer where at least for now the U.S. incumbents currently have a real advantage — they have the advantage of compute power, large datasets, and lots of capital.”

The firm has previously invested in Synthesia, a $1 billion generative AI startup backed by U.S. chipmaker Nvidia that helps companies make presentations with AI-generated avatars.

Victor Riparbelli, CEO and co-founder of Synthesia, told CNBC his company partnered with Accel last year as the firm’s team knows “how to strike the right balance between visionary and useful technology.”

“Over the last year, there have been a lot of cool demos and perhaps too much frothiness in the AI industry,” Riparbelli told CNBC via email. “It was really important to us to partner with a fund that is as focussed as we are on delivering real, tangible business value.”

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Amazon-backed Anthropic launches its Claude AI chatbot across Europe

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Amazon-backed Anthropic launches its Claude AI chatbot across Europe

Sopa Images | Lightrocket | Getty Images

Anthropic, the artificial intelligence startup backed by Amazon, said Monday it’s launching its generative AI assistant Claude in Europe on Tuesday. It will be available to individuals and businesses through the web and via an iPhone app.

A paid subscription-based version of Anthropic’s Claude assistant, called Claude Pro, will be available to users who want access to all its models, including Claude 3 Opus, Anthropic’s most advanced offering.

Anthropic is also launching its business-focused Claude Team subscription-based plans, which cost 28 euros ($30) a month before value-added tax (VAT).

“We’ve designed Claude with a strong commitment to accuracy, security and privacy,” Dario Amodei, CEO and co-founder at Anthropic, said in a statement Tuesday.

AI has been advancing rapidly and officials are concerned about the impact on jobs and privacy.

The European Union Parliament earlier this year passed the world’s first major set of regulatory ground rules to govern the new technology. The AI Act seeks to, among other things, identify and apply rules in accordance with the levels of risk AI poses, dividing categories of risk into low, medium, high and unacceptable.

Anthropic said its Claude assistant is highly fluent in French, German, Italian, Spanish, and other European languages.

While Claude.ai is already available for free on both web and mobile in the U.K., Anthropic says this is the first time the product is launching for users in the EU and non-EU countries like Norway, Switzerland, and Iceland.

Anthropic has quickly become one of the buzziest and most-hyped generative AI companies in the market, with investors valuing the firm at a whopping $18.4 billion as recently as March. That month, Amazon announced a $2.75 billion investment in the startup, taking its total invested in the firm to date to $4 billion.

Amazon’s investment into Anthropic has attracted concerns from some regulators, who worry it could lessen the company’s independence.

In the United Kingdom, regulators are assessing whether Amazon’s investment and partnership with Anthropic, and deals struck by Microsoft with generative AI firms, may constitute effective mergers that could lessen competition.

Amazon says its partnership with Anthropic constitutes a limited corporate investment, not a merger. Microsoft denies its deals with AI startups OpenAI and Mistral and hiring from Inflection are equivalent to merging.

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Apple’s new iPad Pro is thin and fast, but the software needs an update

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Apple's new iPad Pro is thin and fast, but the software needs an update

Apple’s new iPad Pro comes in two sizes, and starts at $999. It also has a new add-on case called Smart Keyboard that makes it feel like a laptop.

Apple‘s new iPad Pro and iPad Air models launch Wednesday. I’ve been testing the new iPad Pro for several days and what I found is that it’s a very nice iPad.

This is an important launch for Apple. Earlier this month, the company reported a 16% year-over-year drop in iPad revenue for its fiscal second quarter. Apple hasn’t rolled out a new iPad since October 2022.

The new iPad Pro is fast, with the latest M4 chip, and it has a new OLED display that’s more colorful than prior screens. It’s the thinnest product Apple has ever launched.

But, it still runs the same iPad software, and that’s starting to feel dated. The fully loaded out model I tested costs about $2,499. That’s before you add the $350 keyboard and $129 Apple Pencil Pro, which will help you get more out of the device.

It’s time Apple makes this more than just an iPad. The software, called iPadOS, needs to catch up to the hardware.

Here’s what you need to know about it.

What’s good

The new iPad Pro models can be seen at an Apple event. The new iPad Pro is the first Apple device with the M4 chip. The larger version with a 13-inch display is the thinnest Apple device to date with a thickness of 5.1 millimetres. 

Christoph Dernbach | Picture Alliance | Getty Images

The new iPad Pros cost $200 more than the models they replaced. I tested the larger 13-inch iPad Pro, which starts at $1,299 before storage and 5G upgrades. The 11-inch model starts at $999.

The first thing I noticed when I picked it up was its thinness. It’s noticeable compared to the M1 iPad Pro I’ve used for the past several years. And it’s lighter. That’s especially nice on the 13-inch model, which replaces the 12.9-inch version. I always thought it felt too heavy and clunky to use as a tablet. It still feels big, but it’s more manageable.

The new OLED screen is another highlight. It’s clear and super colorful. It’s similar to the OLED screen Apple has used on its iPhones Pro for years but not on iPads. The screen adapts, getting brighter in dark movies or showing scenes with explosions. And professional video and photo editors will appreciate its color accuracy. I loved using it for movies and while playing Diablo Immortal. The game will look better once Activision Blizzard releases an update enabling improved graphics for the M4 iPad Pro. The four stereo speakers sound nice and loud but not tinny.

The camera is finally in the right place. It’s along the landscape edge of the iPad so that, when it’s propped up, it’s dead center for FaceTime calls. It used to be on the top of the iPad, forcing that awkward glance to the side during video calls. The quality was nice and clear during my tests and I like that the camera, using the Center Stage features, followed me as I moved around the room.

2024 13-inch Apple iPad Pro

Todd Haselton | CNBC

The iPad has the latest and greatest M4 chip, which hasn’t launched on Macs yet. I ran a GeekBench multicore benchmark test that shows it scoring 48% higher than the prior M2 iPad Pro. Apple promises up to 4x faster rendering over the M2 and 1.5x faster processor performance, which means video editing in Final Cut Pro for iPad and rendering things like 3D models is quicker for professionals who need it. The M4 also has a special engine that helps power the “Tandem OLED” displays. Apple took a unique approach to the iPad by stacking two OLED screens on top of one another, which requires this special part of the M4 chip to work.

The iPad Pro felt quick when I ran two apps side-by-side, switching between Slack and the web browser, or loading into games. Apps switch in an instant. It wasn’t much different than my M1 iPad for everyday stuff, like browsing the web and opening apps, which seems to be how iPads are mostly used. More on that in the next section.

2024 13-inch Apple iPad Pro

Todd Haselton | CNBC

The new iPads Pro support Apple’s updated $350 Magic Keyboard for iPad Pro (the 11-inch version is $300). It’s awesome and is just like typing on a Mac with a full function row above the number keys to switch apps, adjust the volume or brightness and more. Apple added a much larger trackpad and an aluminum palm rest but kept the same soft outside and “floating” screen mechanism, which allows you to snap the iPad onto the case using its magnetic pins and tilt it back and forth.

2024 13-inch Apple iPad Pro

Todd Haselton | CNBC

The updated Apple Pencil Pro is also a lot of fun. I mostly use the Apple Pencil to sign documents. But folks who draw or paint on their iPads, or need more control in 3D or video apps, will like the new features. I liked squeezing it to change between the tool — pencil or brush or eraser and the color — and the haptic pulse to confirm you’ve squeezed it. Developers can add the squeeze function to their apps so you can access different tools in different apps. The added gyroscope also allows you to tilt and twirl the pencil to change your pencil or pen stroke. Double tap is convenient, too, allowing you to switch between a pencil and eraser tool, for example. The hover function previews where you’re going to touch the display.

Apple promises the same battery life as the last iPads Pro. So you get about 10 hours of web browsing or watching video, or nine hours if you’re browsing the web on a cellular connection. That lined up with what I received during my tests. Expect to get a full workday of use. Still, it’s impressive given this iPad is 1.3mm thinner and 103 grams lighter than the last 12.9-inch iPad Pro.

What’s bad

2024 13-inch Apple iPad Pro

Todd Haselton | CNBC

Here’s my biggest gripe about the Pro models: The software, iPadOS, is what you’ll get on any other iPad. And while I think it works great, it’s time for the Pro models to have a better operating system.

My guess is Apple has something big planned for next month’s Worldwide Developers Conference and I hope it addresses this. I probably won’t get my wish, but I’d love to see the iPad Pro act just like a Mac. Plop it into the keyboard and it turns into a touchscreen MacBook. Lift it off and use it like a regular iPad. It has a newer processor than Apple’s MacBooks, so this should be possible if it’s something Apple wants. Regardless, we need better multitasking.

Stage Manager on the iPad Pro

Todd Haselton | CNBC

Should you buy the 2024 iPad Pro?

2024 13-inch Apple iPad Pro

Todd Haselton | CNBC

It depends on what you need. It’s my favorite iPad to date, even though I don’t need the faster chip. I love how thin it is and that it’s lighter than the earlier iPads. The updated keyboard is great. The new Apple Pencil Pro works well, but creatives will use it more than I do.

I still think the 13-inch is a little too big and would steer most folks to the 11-inch model. If you don’t care about needing all the speed, you should consider the new iPad Air, which costs less and also comes with a bigger 13-inch screen. If you just need a tablet to browse the web, play games and check email, get the $350 iPad.

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