Not many people realise the value that artificial intelligence (AI) can offer when it comes to sports betting. It can be potentially risky to bet on sports, with changes occurring within seconds as injuries occur or the weather turns bad. AI and machine learning (ML) can be used by bettors in real time to get insights into how different events can impact the fight, race, or game, and give advice on how to bet to score big.
Another area where AI proves useful is in spotting betting opportunities for various types of bets, including arbitrage betting. This strategy involves identifying price discrepancies between different bookmakers and placing multiple bets to guarantee profit regardless of the outcome. AI can scan odds across dozens of sportsbooks in real time, and flag opportunities much faster than a human can. AI allows bettors to act quickly before market adjustments, making it an effective way to reduce risk.
In 2022, the market for AI in sports betting was worth $2.2 billion (£1.64 billion), and it has grown since then with an annual growth rate of 30.1%. It is expected that AI sports betting strategies will be valued $29.7 billion (£22.11 billion by 2032). It is therefore clear that there is a place for AI in the sports betting market.
Historically, betting has relied on static models to analyse game outcomes. However, ML has flipped the script and processes real-time data using complicated algorithms to find patterns and provide better insights. This includes player performance trends, historical match scores, and changes in the betting market.
Bettors can use AI in several ways, including analysing previous games or adjusting odds in real time. The benefits of using artificial intelligence in sports betting include:
- Improved decision-making since bettors have better insights and can quickly analyse vast amounts of data from various sources.
- Real-time updates are provided on betting data, giving a player dynamic odds. AI can quickly adapt odds based on the current circumstances in the sporting event.
- Automation through AI systems results in much more efficient betting. Sportsbooks can scale their offerings without compromising the betting experience.
AI plays an important role in predictive analysis. It can process massive datasets and create informed predictions. One example is IBM’s Watson, which made headlines for being able to accurately predict outcomes. It analyses player condition, team performance, the weather, and other external factors that give insights better than any human can.
AI can also monitor bettor behaviour and provide personalised experiences. By tracking bettor preferences, AI platforms can make recommendations that meet the bettor’s strategies and sporting interests.
There is a future for AI in sports betting. Although there are still ethical concerns and considerations around transparency of AI algorithms, new technologies like blockchain transactions and deep learning will improve transparency, accuracy, and data analysis.
According to a YouGov study, 16% of British bettors are already using AI tools to guide betting decisions, while 26% admit that they’re likely to use it within the next year. However, there is still resistance, with a wqeary 55% of surveyed bettors claiming they wouldn’t use AI for sports betting.
