“Can machines think?”, if you’ve seen the critically acclaimed film ‘Imitation Game’, you will know that this is the question that Benedict Cumberbatch’s character, Alan Turing is asked in relation to machine learning.
More than half a decade since Turing theorised that computers have the potential to make a major breakthrough, significant strides forward since show how much progress has been made.
Already, iGaming companies are using advanced algorithms designed to collect data from players about their gambling habits, though the approach borders on slapdash with no real strategy.
Executed in a more sophisticated manner, it would make the marketing process easier for betting companies, who can define an outbound strategy based on the findings of such scientific results.
It is essentially a highly streamlined, if not, an almost intrusive new form of market research, which is able to better shape a company’s marketing strategy, thereby making it much more tailored and customised.
We have seen machine learning already put to test in this industry, though from the gambler’s perspective. There are websites whose algorithms are designed to analyse historical and current data to make accurate predictions about the outcome of events, though these are still a work in progress in terms of absolute accuracy.
Bringing order to the chaos through Machine Learning and AI
This next generation technology will help to gradually change the world as we know it, effectively being a breakthrough commodity.
In terms of its potential impact on the iGaming industry, machine learning will help companies to hit larger commercial goals, such as identifying their most valuable and profitable customers with much more precision.
Using complex algorithms to do this, they are just as interested in the potential players who are just as likely to win big than lose big.
Sounds illogical right? Though, when fully understood, this makes for sound reasoning. Big winners for any online casino are basically the biggest selling point that you could have.
It shows new, untapped customers what is possible, inspires them sign up and ultimately gamble. Any casino knows that for any big payout to a winner is worth about 10 times that amount. Machine learning and artificial intelligence will help to make that possible.
Adopted by hedge funds early – why so late to the party?
Machine learning and artificial intelligence, while appearing to be quite new, have been used almost in a ‘cloak and dagger’ way by investment banks and hedge funds for the past decade.
It is almost as if it was prohibited in any other industry, though for one where its bottom line (like elite finance) is arguably the most important factor, it begs the question, why this wasn’t adopted earlier.
While there is no definitive answer to this, one of the possible reasons is that in terms of technological development, especially online, this industry took a while to catch up to the nuances and importance of the back-end development of their websites, user experience and even SEO.
Many companies in the gambling sector used to rely solely on their physical premises to make them money, traditional forms of marketing for advertising and for a long time considered their website to be an afterthought.
The next big arms race
Whichever company adopts this first and combines it with the right strategy has the potential to leave their competitors fighting for second place. The amount of investment currently being made into the areas of machine learning and artificial intelligence by gambling companies currently is staggering, though necessary.
Having the ability to run this technology 24 hours of every day takes this industry to the next level, especially in terms of efficiency. By identifying bigger spending customers quicker and at a faster rate than competitors, not only saves time, but allows marketing to understand how to pitch and ultimately drive bigger profit margins, resulting in a more predictable and accurate annual revenue forecast.
This industry will certainly make for interesting viewing over the next few years for sector commentators, all of whom will be keeping a close eye on which firm wins the war.