Continuing our exploration of the impact of artificial intelligence on the gambling industry, particularly within the realm of sports betting, representatives from major betting companies, who have already incorporated AI into their analytical processes, discuss the potential of automated systems.
Unveiling the Power of AI
Enter automated odds calculation. The revolutionary promise of products like Alpha Odds and Genius Sports' Edge lies in their ability to harness data to manipulate margins, offering operators the opportunity to optimize their entire supply chain for maximum profitability.
"We can tailor the prices offered to clients based on their financial standing and commitments, thereby enhancing trading efficiency," explains Small. "The Alpha system empowers operators to make strategic decisions, from how they market odds to customers to how they cater to their end clients."
Gone are the days of manual analysis; AI now performs these tasks on an unprecedented scale. "Our system, overseen by a team of expert traders, ensures optimal configuration for each client," Small adds. "It's a personalized approach."
The system adapts to the unique tendencies of each client, adjusting ratios to optimize operating models on a client-by-client basis.
The Promise of AI in Betting
Clyde Harris of Circle Squared anticipates that AI-driven systems will "smooth out volatility" based on the strategies pursued by sports clubs. This aligns perfectly with the promise of AI—to avoid minimum margins while maximizing profits.
Tom Daniel of Propus Partners notes the emergence of "small quant shops" dedicated to solving the challenges of sports betting through AI. While progress is being made, achieving the grand goal of fully "solving" the sports betting problem remains a distant objective.
Looking Ahead: The Future of AI in Sports Betting
Small envisions the current stage as merely the starting point for the utilization of artificial intelligence in sports betting. Alpha represents a further mechanization of the backend processes, building upon the initial introduction of algorithms. This progression marks a logical continuation of the automation journey, aimed at creating cohesive blocks of functionality.
Simon Trim, a consultant specializing in sportsbook backend strategy and operations at 10Star, foresees a future where machine learning algorithms handle pricing, automated liability management systems oversee customer management, and a blend of both handles betting processes. This integration of AI into various aspects of sports betting promises increased efficiency and effectiveness.
Holland from Genius Sports emphasizes that automation is steadily reducing the manual workload on sales teams, particularly in risk management and customer segmentation. However, he underscores the importance of retaining the subjective input of sales teams, highlighting the ongoing collaboration between human expertise and AI-driven automation.
Exploring New Content Types and the Future of AI in Sports Betting
Genius Sports' Tom Daniel delves into the potential impact of automation on traders and the emergence of novel content types, echoing insights from Genius Sports' Tom Holland.
Daniel reflects on the prospect of automation freeing traders from traditional tasks, allowing them to focus on optimizing existing content. "Once you automate certain processes, you free traders from having to think about new types of content; they will have to try to optimize what they already have," notes Holland.
Holland emphasizes the significant strides made in machine learning and process automation within sportsbooks, highlighting the potential for further advancements with increased data input. "What we have developed and are offering to the market in terms of machine learning and process automation in sportsbooks is in itself a huge step forward. But what comes next will be really interesting because the more data the system gets, the better the results," he remarks.
Small, of Genius Sports, envisions a future where AI fundamentally transforms every aspect of the sports betting industry. "Where AI approaches take the sports betting industry will undoubtedly be as interesting as what happens in the world at large with artificial intelligence. With the amount of data available to us, I see increased use of technology to improve operational efficiency around the world. AI will impact every aspect of the carrier business – that’s where I think we’re heading," he predicts.
Looking ahead, Small emphasizes the potential for sportsbooks to offer innovative products and services, driven by advancements in AI. "The future is going to be very interesting when it comes to what sportsbooks can achieve and what products they can offer in the near future," he concludes.
In the meantime, industry leaders are prioritizing the expansion of databases and the implementation of AI-driven processes to handle vast volumes of data. This data-centric approach enables personalized customer experiences, with gamers receiving tailored offers based on their interests. Ultimately, these advancements are poised to make the gambling industry, particularly the fair betting sector, significantly more profitable.
