Question of the Day - 10 December 2024

Artificial intelligence is a huge subject, so we can cover only the barest of basics here. But we can say without equivocation that it's not that AI will affect casinos and players sometime in the future. Rather, it's already transforming the casino and gambling industry in significant ways and has been for a number of years, as evidenced by all the keynote speeches, panels, workshops, and experts convening around the topic at the gaming trade shows, such as the Global Gaming Expo, the Indian Gaming Tradeshow and Convention, and SBC events around Europe and Latin America.  

One way in which AI is affecting the casino industry is what everyone in the gambling business continuously refers to as "elevating the player experience." Artificial intelligence applications analyze customer behavior in order to offer personalization gambler by gambler, such as game suggestions, promotions, and loyalty rewards. And they power the ubiquitous chatbots that provide 24/7 online customer support, answering queries about games, rewards programs, or technical issues. In addition, AI assists in game development and optimization, helping to create more engaging and interactive games by analyzing player preferences, optimizing game mechanics, and combining traditional gambling with skill-based elements to attract a younger demographic, along with detecting signs of problem gambling by analyzing patterns, then recommending intervention strategies. Self-exclusion programs are often driven by AI systems.

AI easily crunches voluminous data to identify trends in slot machine usage, enabling casinos to optimize placement, payout frequencies, and themes.

Casinos also use AI for the purpose of dynamic pricing, such as adjusting room rates, managing marketing campaigns and gambling and gift promotions, and services based on customer preferences and spending habits and market demand. These systems predict which customers are most valuable, then target them with tailored marketing campaigns. And they forecast demand, so management can optimize staffing, inventory, and event planning.

AI can pick off unusual patterns or behavior that could indicate cheating or fraud, both in physical casinos and online platforms, and it analyzes financial-transaction patterns to flag suspicious activity, ensuring compliance with regulatory requirements.

Of course, artificial intelligence is responsible for virtual dealers and live-game hosts to offer a more immersive online-gaming experience. Machine-learning algorithms can also verify the fairness of random number generators (RNGs) used in online games.

These are just the tip of the iceberg in terms of what the enormous data-processing abilities of AI can do -- and that's getting more and more sophisticated by the hour.