Google's AI-Powered Virtual Travel Agent: Priceline Unveils Innovative Technology

Looking for a hotel in New York that is conveniently located near a Christmas market, a vegan restaurant, or any other attraction? Look no further than Priceline, where Google's artificial intelligence (AI) will be available as early as this summer. Google and Priceline have confirmed this information.

The online travel agency, which is part of Booking Holdings (BKNG.O), is set to introduce an advanced chatbot for trip planning. Moreover, Priceline plans to offer personalized hotel suggestions akin to having a "personal concierge" for its users. Martin Brodbeck, Priceline's Chief Technology Officer, shared these details.

"When you're booking your hotel, you can easily find out about the Christmas market in Bryant Park, which runs from early November until the beginning of January," he explained.

Priceline will have access to Google's cloud tools, including generative AI similar to the technology behind ChatGPT. These tools enable the system to generate text that reads as if written by a human. Additionally, the tools extract accurate information from existing data, such as hotel prices.

By leveraging AI, Google aims to compete more closely with rivals Amazon (AMZN.O) and Microsoft (MSFT.O) in the cloud services sector. Google has traditionally held the position of being the third-largest provider in areas like data storage.

For Priceline, the adoption of innovative technology on its website will enable it to compete effectively with various platforms that offer travel options. Some of these platforms are already exploring how consumers respond to AI.

Expedia Group (EXPE.O), Priceline's rival, has also announced that ChatGPT will power conversations on their smartphone app, providing travelers with inspiration for places to visit and booking options. Rathi Murthy, Chief Technology Officer of Expedia Group, confirmed this.

Both Expedia and Kayak, another site owned by Booking Holdings, have integrated their travel suggestions into the standalone ChatGPT program.

While Google has long been considered a competitor to Priceline, Brodbeck emphasized that it was Google's cloud capabilities that led to the partnership.

The ability to develop applications using generative AI, pioneered by Google, has attracted recent business opportunities, according to Thomas Kurian, CEO of Google Cloud.

Kurian referred to the current state of AI technology as a "Cambrian moment," comparable to the extraordinary prehistoric period when a wide array of new species emerged. However, he declined to comment on how free corporate previews were affecting the profitability of Google Cloud.

Priceline will utilize Google's AI to generate coding suggestions for hundreds of its software developers. Additionally, Priceline will integrate Google's search capabilities into its employee intranets. The use of Google's AI will also accelerate marketing efforts for trending travel destinations.

Brodbeck explained, "For instance, the AI could create captivating images of beautiful beaches and combine them with compelling generative AI copy."