The role of artificial intelligence and machine learning in online sports betting
Much has been made of the use of artificial intelligence and machine learning in online sports betting, so let’s look at how the technologies are harnessed in the space.
In the first instance, we should set out what AI is and what it does. In its simplest and most literal sense, AI is the theory and development of computer systems that are able to perform tasks normally requiring human intelligence.
Some of the broadest uses of the technology revolve around visual perception, speech recognition, decision-making or translating languages; and in certain scenarios the ability to display human-like capabilities such as reasoning, learning, planning and creativity.
When it comes to the process, AI enables technical systems to perceive their environment, deal with what they perceive, solve problems and act to achieve a specific goal. Computer systems receive data that is gathered through sensors such as a camera – process it and respond, in the case of TXODDS, by producing sports betting odds and datasets.
AI and sports betting – exponential scale
Technology has long been the driver of the online sports betting space, it has enabled operators and suppliers, among those of course sports betting data providers such as TXODDS, to deliver new products to consumers on their mobile phones and in the comfort of their own homes.
What AI and machine learning have contributed has been computational power, reach and speed. The ability to handle vast amounts of data at scale, categorise and triage all that information into sports betting odds, statistics, live or historical data enables online sportsbooks to offer their players hundreds of markets and different bet types.
Machine learning algorithms process the data quickly and accurately and enable data providers to price up markets while taking into account past, current and potential future outcomes. This enables the pricing of markets and producing the relevant odds for way betting operators, while players are able to use and harness the data to identify patterns that might help with their betting.
When it comes to offering players sports or teams to bet on, the ability to provide such comprehensive data (current and historical) also enables operators to broaden their players’ betting perspectives.
Many consumers are used to betting on certain teams and athletes with regularity, but data that is easily digestible and formatted in a user-friendly way opens up betting possibilities on new or adjacent markets that they would not have been aware of previously.
The machine learning that produces the data that bettors see can also be used by them to develop strategies and accurately determine how teams or players will perform. They will then wager accordingly and this activity can then be stored and processed by the sportsbooks to produce relevant and targeted bet suggestions.
Predictive analytics that use machine learning algorithms to analyse historical data enable players to place informed bets on future outcomes and provide them with enhanced control over their wagering.
How does AI impact betting odds?
The impact of artificial intelligence on sports betting data is already significant and this is despite the technology still being in its earliest incarnation. Its ability to process huge amounts of information means companies such as TXODDS and our customers can leverage highly accurate data and set odds that reflect the true probability of outcomes.
It can also be used to identify patterns in betting behaviour and allow us to adjust odds before or during an event. AI and machine learning can also be set to automate trading on sportsbooks according to how events develop, which allows our partners to respond quickly to changes on the field or market movements.
However, it’s important to remember that the potential and new horizons that AI provides to the sports betting industry also includes risks. AI algorithms depend on the data being accurate, if it isn’t the algorithms will produce odds that are inaccurate and expose operators to losses from the sporting events they promote on their websites. To mitigate these risks, providers have come up with verification and vetting processes that ensure the base data is correct to ensure accurate pricing across the board.
Conclusion
It’s important not to overstate the capabilities of AI or become over-reliant on it, but there is no doubt that the technological speed and scale it brings to the online sports betting odds and related features such as trading, risk management or predictive personalisation of betting offers have contributed to faster and more accurate betting odds. The key is in harnessing machine learning via AI and bringing it to consumers in comprehensive, balanced and user-friendly formats.
