Error:data Binding Does Not Support Jack Builds Yet
Solution 1:
From yigit's comment it's clear that this functionality is still under development as he and George are project member of DataBinding.
we are working on it... yigit
I have also found that issue is already reported Issue 210615: Databinding with Jack compiler
UPDATE
2.3 will allow you to use data binding with jack but it still has limitations
Solution 2:
Google will add support for Java 8 language features directly into the current javac and dx set of tools, and deprecate the Jack toolchain.
Check this out , Future of Java 8 Language Feature Support on Android
https://android-developers.googleblog.com/2017/03/future-of-java-8-language-feature.html
Updates:
Java 8 language features are now supported by the Android build system
Yesterday, we released Android Studio 2.4 Preview 6. Java 8 language features are now supported by the Android build system in the javac/dx compilation path. Android Studio's Gradle plugin now desugars Java 8 class files to Java 7-compatible class files, so you can use lambdas, method references and other features of Java 8.
Source : https://android-developers.googleblog.com/2017/04/java-8-language-features-support-update.html
Solution 3:
As of gradle:2.2.0-alpha5, Jack builds are not yet compatible with DataBinding.
If you want to use data binding with Java 8, you can use retrolambda.
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