AI and LLMs are slowly taking over every industry. Boardroom explains how the next-gen technology is affecting how sports bets are placed today.
For many, artificial intelligence – AI – is intimidating.
But for an ever-growing group, using a generative artificial intelligence chatbot like ChatGPT doesn’t feel all that strange. According to McKinsey & Company, as of August 2024, 40% of U.S. adults aged 18 to 64 had used AI to some extent. The use of AI also varies, from something as mundane as compiling a dinner recipe to automating repetitive tasks and streamlining workflows for Fortune 500 companies.
How major sports leagues use AI to capture and understand data continues to evolve.
Subscribe for the biggest stories in the business of sports and entertainment, daily.
One example is the NFL, which entered into a partnership in 2017 with Amazon Web Services (AWS) to begin to use machine learning for data collection on the NFL Next Gen Stats platform. That partnership was renewed in 2019, when the NFL began leveraging AWS’s AI services “to provide a deeper and more profound understanding of the game than ever before, making transformational change possible in football, other sports, and potentially other industries.”
In August 2024, Genius Sports launched GeniusIQ, which uses machine learning and generative AI to “ingest and compute datasets” from sports colleagues, including the WNBA and the Premier League.
“From immersive broadcasts to automated officiating, data-driven performance analysis and much more, AI is central to the global Genius Sports operation,” said Mark Locke, CEO of Genius Sports. “The launch of GeniusIQ is a major milestone for the business, unifying our incredible range of AI-powered products and ushering in a new era for the global sports industry with infinite new ways to reach and engage fans.”
In addition to internal data use, sports leagues also use data to their monetary benefit: to sell it.
The NFL has signed a partnership with Genius Sports, meaning that it is the only sports data and technology company allowed to distribute the NFL’s official data to licensed sportsbooks – think DraftKings, FanDuel, and BetMGM – for them to utilize the official data as they see fit. Numerous other leagues do this, including the NCAA.
And if you are an average, everyday sports bettor? Have no fear, AI is for you, too.
“Bettors seem to get decision paralysis when they see too much data,” Megan Lanham, CEO and co-founder of Rithmm AI, told Boardroom. The Boston-based startup uses AI betting models to provide insights. So, a little more than asking ChatGPT who will win the game or if Lamar Jackson will be over or under 300 total yards.
“One of the things our app does specifically is target high ROI predictions that also have high win rates – stuff that previously was impossible to do manually. This way, people know they’re making better, smarter bets. All of this is automated on the backend by our own AI,” she explained.
And undoubtedly, changes are coming.
“With AI, we now have the technical foundation necessary to scale truly personalized experiences. [R]esearch shows that personalization drives a 25% revenue lift for digitally native businesses – in sports betting, where operators are spending billions on acquisition, that translates to massive growth opportunity through personalizing the fan experience,” said Mark Antal from Staked AI.
Staked AI is an AI-powered audio platform for the sports industry that works with brands, publishers, and sportsbooks.
He expects to see personalized “color commentary” on users’ betting portfolios, chat-based bet discovery and analysis, and marketing and in-app language that’s relatable to users regardless of their level of experience with sports betting.
So, you’re more than welcome to pull a Drake and casually ask ChatGPT to pick your bet for you – something he did this summer in a viral clip. You can go even further and train your AI friend to analyze specific data and provide you with metrics to inform your bet.
But know that the Terms of Service for sportsbooks say you can’t use a machine to place your bet. No one person (or bot) can place a bet for you, as it is considered proxy betting and is illegal.
Not yet, at least.
Read More:
Inside Stephen A. Smith’s Plan to Become the Biggest Name in Sports Media
Jurnee Smollett’s Next Act: ‘I Want Us to Do Things We’ve Been Told We Cannot Do’
Reddit at 20: How the Social Network Became a $26B Internet Giant
Fairways & Fashion: Adidas Makes its Mark in LPGA, Women’s Golf
The $150K Keychain: How Labubu Became the World’s Hottest Collectible
