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Artificial intelligence in gambling – a trend that is already shaping the future of the industry

  • Writer: Anton Kuchukhidze
    Anton Kuchukhidze
  • 15 hours ago
  • 3 min read
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In recent years, artificial intelligence (AI) has firmly established itself among the trends that are driving change in the gambling industry. It opens up many new opportunities for businesses, from personalized gaming experiences for players to automated risk management systems. However, like any other technology, AI needs time to adapt to business needs. Even more time and effort are needed for this technology to start generating profits.


The use of artificial intelligence is developing rapidly in all areas, and gambling is no exception. More and more companies are using elements of AI to collect and analyze big data, integrating it into applications to improve the gaming experience, and using it for marketing purposes. This is not surprising, as AI allows you to create more accurate prediction models, automate data processing, and even detect fraudulent schemes in real time.


However, unfortunately, its application is not so simple. There are two key challenges that prevent the more active spread of AI in the gambling industry.


1. Preserving the responsible emotional image of gambling. Despite all the advantages of automation provided by AI, the "human factor" must be preserved in gambling. After all, it is human emotions, experiences, and individual experiences that make the game a game. Turning the game into an exclusively automated process, where everything is controlled by algorithms and mathematics, kills the thrill — the emotion that players seek when they open the app on their phone or sit down at a casino table. It is necessary to maintain a balance in which technology complements rather than destroys the "human factor" in the game. This is one of the most difficult tasks for businesses and developers.


2. Profitability. Despite the incredible growth rate of AI (in 10 years, from 2023 to 2033, the market is expected to grow from $189 billion to $4.8 trillion), its current application in gambling is not yet generating significant profits. Since the technology is new, it requires constant investment for testing and adaptation. This means that companies can invest in several AI projects for a long time in the hope that at least some of them will eventually prove profitable. Most AI projects today are unprofitable, with only 5% showing minimal returns. Thus, from a financial point of view, AI projects are still "investments in the future" and do not bring benefits "here and now."


Despite all the challenges, it is clear that the role of AI in online gambling will continue to grow. It is expected that in the coming years, AI will become widespread in the gambling industry in the following areas:


- Personalization of the gaming experience. Players will receive personalized offers, advice, and support, which will increase their engagement and satisfaction with the game.


- Automation of fraud prevention. AI is expected to enable national gambling regulators to identify and block illegal operators more quickly and effectively.


- Player behavior analysis. AI's ability to simultaneously analyze hundreds of parameters and draw relevant "conclusions" will allow for more effective tracking of players with risky gaming behavior. Accordingly, this will help reduce the risks of gambling addiction among players.


- Use in marketing and advertising. Even at the current level of AI development, it is quite obvious that this technology greatly simplifies the production of visual and audio content. Moreover, AI-generated content is becoming increasingly realistic. At the same time, the cost of its creation is dozens of times lower and the process is simpler compared to traditional methods.


Undoubtedly, AI-based solutions will become increasingly widespread. They will become more accessible even to relatively small gambling companies, which will contribute to their further popularization and deeper integration into the gambling industry. The intensity of this process will depend primarily on how quickly the above challenges are overcome. Those companies that can effectively use AI from a commercial point of view while preserving the emotional component of the game will reap the greatest benefits. After all, unlike intelligence, emotions must always remain genuine.

 

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