Why Personalisation and AI Algorithms are the Future of the Gaming Industry

Posted on February 13, 2020

When it comes to retaining customers, the Gaming Industry is always on the lookout for ways in which they can appeal to customers; a way to match their products to the needs, wants and expectations of those who are going to spend their cash on the site.

Over the years this has seen the development of a number of new betting opportunities, such as esports betting, virtual horse racing and In-Play betting to name but a few. However, projecting ahead in time to guess what players would want in the future is a tricky and risky business.

The statistics and tangibles that can be measured from a customer’s interaction with a site only tell a part of their story. What is required is a way for a provider to be able to measure more about their customer than simple data can show. Fortunately, such a way to do that exists in the form of AI algorithms.

What do AI algorithms do?

The purpose of AI algorithms is to provide companies with specific measurable and useful data about the player that cannot be measured solely by what they do on site. These algorithms can measure a number of different parameters of a players behaviour on site, measure them and then cross-reference them to pick out the ‘hidden’ wants and desires of players.

This information can then be used by companies to better understand the desires of their players when it comes to esports betting. In doing so, what companies are effectively doing is using their AI algorithms to deliver highly personalised content to the customer.

Artificial Intelligence future gaming industry

It is a similar process to how sites like Google can measure the articles, advertisements, websites, videos etc that an individual will click on and view and then how Google can then personalise the adverts that you see when you next log in.
This however is a contentious issue as it is clearly open to abuse by unscrupulous companies, something that 1Click Games CEO Maxim Terehovich remarked upon in a recent article in the iGaming Business magazine.

GDPR and “special AI algorithms”

Mr Terehovic explained that currently “responsible gaming practices and market regulation are the best mechanisms currently in place to limit the malicious use of AI applications.”

He explained how his company, 1Click Games, who provide a number of gaming options to customers including virtual sports betting, casino games, slots and more, develop ‘special AI algorithms for operators and government agencies”. These specifically designed algorithms allow the companies and agencies to “identify moments where the algorithms begin to exceed the responsible gaming rules.”

Mr Terehovic also noted that recent changes to the GDPR legislation “promises us security” and pointed out the benefit of the process starting that;

“This ability to collect a huge amount of information and process it in seconds for quick decision-making, without endangeroung our personal data, is the main advantage of AI.”

AI Algorithms: the Double-Edged Sword

The issue of using AI algorithms is the classic double-edged sword. While it can provide us with bespoke, personalised and more relevant experiences online, such as when betting on esports, traditional or virtual sports, there is a point at which the data collected on the individual to facilitate this becomes an invasion of privacy.

That is all the more apparent when data is collected without the customer’s knowledge, consent or even without them realising that specific intangibles regarding their behaviour are being measured.

It is comforting to know that many providers are responsibly using AI algorithms to help personalise people’s online experiences for the better and not to seek to exploit the knowledge they procure from them.

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Ian John

Ian John is an expert across many realms of online gambling, both in US and international markets. Based in the UK, Ian covers sports betting, poker, and the regulated online casino and esports betting markets for a wide number of industry-focused publications.

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