• CEO Brian Chesky said Airbnb is undergoing a transformation to an AI-first app.
• Airbnb has rolled out AI for customer service and said its expanding on what agents can do.
• Chesky predicted that all top apps will be AI apps.

Not only does Airbnb want to be the "everything app" — where users can book literally everything, from accommodations to experiences and services — it also wants to do the booking for you.

Brian Chesky, cofounder and CEO of Airbnb, laid out his vision for the travel app's AI-powered future during the company's second-quarter earnings call on Wednesday. Airbnb beat revenue expectations for quarter two and announced a $6 billion stock buyback, but said it expected slower growth in Q3. The stock was down more than 6% after-hours.

"Over the next couple of years, I think what you're going to see is Airbnb becoming an AI-first application," Chesky said on the call with analysts.

He added that currently "almost none" of the top 50 apps in the App Store are AI apps, with the notable exception of OpenAI's ChatGPT. But he predicted that soon every one of them will be AI apps, either AI startups or pre-generative AI apps that successfully transform into "native AI" apps. That's the transformation that he says is underway at Airbnb.

Chesky said Airbnb's approach to utilizing AI has differed from some other travel companies in that they have not focused on using AI to offer travel planning and inspiration. Instead, the company has rolled out AI in customer service, with a custom agent built on 13 different models and trained on tens of thousands of conversations.

As a result of the AI customer service chatbot, he said Airbnb has reduced the number of hosts and guests who need to contact a human agent by 15%.

Chesky said the AI agent is going to become more personalized throughout the next year and that it will be able to take more actions on behalf of the user.

"It will not only tell you how to cancel your reservation, it will know which reservation you want to cancel. It can cancel it for you and it can be agentic as in it can start to search and help you plan and book your next trip," he added.

Airbnb declined to provide additional comment when reached by Business Insider.

In February, Chesky said on Airbnb's quarter four earnings call that he thought it was still too early to use AI for trip planning, but that he believed AI would eventually have a "profound impact on travel."

Chesky also said in February that he wants to make Airbnb the Amazon of travel, or a one-stop shop for "all of your traveling and living needs."

Airbnb in May announced it was relaunching its Experiences business and launching Services, which allows users to book on-site professionals like photographers or massage therapists.

On the call Wednesday, Chesky said he was "very bullish" on Experiences and that the feedback so far has been positive.

• Software is no longer being built for people, but for AI agents, said Vercel's CEO.
• "Your customer is the agent that the developer or non-developer is wielding," said Guillermo Rauch.
• AI agents have been on the rise, and they could change how apps and software interact with users.

The future of software isn't being built for people — it's being built for machines, said Vercel's CEO, Guillermo Rauch.

"Your customer is no longer the developer," said Rauch on an episode of the "Sequoia Capital" podcast published Tuesday. "Your customer is the agent that the developer or non-developer is wielding."

The CEO of the web infrastructure startup, valued at $3.25 billion last year, said code isn't just being written for humans to read or interact with anymore. It's increasingly being written so AI agents can understand, use, and extend it.

"That is actually a pretty significant change," said Rauch. "Is there something that I could change about that API that actually favors the LLM being the, quote-unquote, entity or user of this API?"

This new AI-first era means software tools may need to evolve based on how large language models interact with them.

"LLMs' strengths and weaknesses will inform the development of runtimes, languages, type checkers, and frameworks of the future," Rauch said.

Rauch also said that in the AI era, Vercel's newer users — who may not be developers but designers, marketers, or even AI agents — expect things to just work.

Developers were used to dealing with errors and "terrible, negative feedback all day long," he said. But today's users have a much shorter fuse when something goes wrong.

Still, he sees that as an "amazing pressure" for product builders. "You want something that works 99.99% of the time," he added.

Last year, Vercel raised $250 million in a Series E round led by Accel, with investors including Tiger Global and GV.

Rauch and Vercel did not respond to a request for comment from Business Insider.

Rise of AI agents

2025 has been hailed as the year of AI agents. They could change how the internet works and how apps and software interact with users.

Bernstein analysts wrote in February that while websites and apps won't go away, users may no longer interact with them directly. Instead, they will access information, content, and widgets through an AI assistant that becomes "the aggregator of the aggregators."

"If it scales and plays out like we think it might, this. Changes. Everything. The aggregators get disaggregated, and much of consumer internet may be structural shorts. Welcome to the Agentic AI era," the analysts wrote. "There's nowhere to hide."

But these agents are not perfect. Researchers have warned that agent errors are prevalent and compound with each step they take.

"An error at any step can derail the entire task. The more steps involved, the higher the chance something goes wrong by the end," Patronus AI, a startup that helps companies evaluate and optimize AI technology, wrote on its blog.

The startup built a statistical model that found that an agent with a 1% error rate per step can compound to a 63% chance of error by the 100th step.

Still, they said that guardrails — such as filters, rules, and tools that can be used to identify and remove inaccurate content — can help mitigate error rates. Small improvements "can yield outsized reductions in error probability," Patronus AI said.

• Ciroos builds AI agents that act as site reliability teammates to find and fix software errors.
• The startup just launched from stealth with $21 million in seed funding from Energy Impact Partners.
• Business Insider got an exclusive look at the pitch deck Ciroos used to raise its seed round.

A team of enterprise tech veterans just raised $21 million to introduce an AI fix to some of the most painful software engineering problems: middle-of-the-night outages and other critical system failures that require immediate attention.

Ciroos, a new startup founded by former Cisco, Amazon Web Services, and Gigamon executives, just launched from stealth with its seed funding round, led by Energy Impact Partners.

Headquartered in Pleasanton, California, Ciroos builds AI agents that act as site reliability engineering (SRE) teammates. Traditionally, it can take a long time and many people to keep software systems running — and to find a fix when something breaks. When a website breaks down overnight or during a holiday weekend, it's up to a team of unlucky, on-call engineers in triage mode to find a fix as quickly as possible.

Ciroos's agents work alongside a company's operations team to detect problems before a human is officially alerted, identify the root cause, and either fix them autonomously or help their human teammates fix them faster.

Considering that the median size of a seed funding round in the first half of 2024 was just $1.3 million, per Crunchbase data, Ciroos's $21 million round is staggering in comparison. The startup's CEO, Ronak Desai, told Business Insider that he and his co-founders connected with investors who agreed that enterprise operations needed a new approach, which AI agents could achieve.

"We saw deep curiosity from investors on the customer anecdotes we shared, and everybody noted our focus on cross-domain correlation as our point of differentiation," he said. "Investors also readily recognized our execution track record, our relentless customer focus, and the deep experience we had assembled — all necessary ingredients to build enterprise-class products."

Desai said that with its funding round completed, Ciroos will focus on hiring: the startup plans to staff up with AI engineers, full-stack engineers, and salespeople in the San Francisco Bay Area and India.

AI agents are booming in 2025, and Ciroos faces stiff competition from a multitude of enterprise tech startups that build AI teammates to help software and computer engineers. In May, no-code AI agent startup StackAI announced it raised $16 million from Lobby VC, and in April, AI debugging agent startup Spur announced it raised $4.5 million from First Round Capital and Pear.

Other startups offer general AI agents that can complete a variety of workplace tasks, including those traditionally handled by software and computer engineering teams. For example, the startup Artisan announced it raised $25 million in April, and Coworker announced a $13 million round in May.

Here's an exclusive look at the 11-slide pitch deck Ciroos used to raise $21 million in seed funding.