The sharing economy is an economic system in which private individuals share assets and services, either free or for a charge, often using a community-based online platform. Individuals can share assets such as clothes and toys or services such as household skills and insurance. The sharing economy is based on ideas of community as the world grows ever more interconnected.
GlobalData’s Sharing Economy (2024) report predicts the sharing economy market will reach over $1 trillion in revenue by 2031. The report reviews the market players, such as Airbnb and Uber, neither of which owns the assets they offer. Instead, they facilitate the “sharing” of these services and assets. As this model reaches maturity, these companies are harnessing new technologies, and artificial intelligence (AI) is among them.
AI’s importance lies in its ability to improve personalization, efficiency, and innovation within the sharing economy, thereby driving growth and enhancing consumer satisfaction. AI helps platforms understand their consumers better, enabling them to offer more personalized-tailored services. Companies like Airbnb and Lemonade use AI to provide customized offerings to their users. AI can streamline processes and provide near-instant responses, as seen with Lemonade’s use of AI in handling insurance claims.
