Many people talk about Artificial Intelligence being the future of everything, but what does that mean, and what would be the outcome?
Artificial intelligence and machine learning technologies have shaped the world into what it is today, and experts suggest that we barely scratched the surface of its potential.
To dig a bit deeper into the subject, we first have to understand the basics. First of all, it is really important to understand the difference between Machine learning and artificial intelligence.
Artificial intelligence is a field of computer science that enables any computer to mimic human intelligence. AI is not pre-programmed software, instead of that, it uses complex algorithms that can work with their intelligence.
On the other hand, we have machine learning which is a subfield of artificial intelligence. Since AI needs data to make decisions or predictions, machine learning enables the machine to learn from past data without being explicitly programmed.
Now that we got the boring stuff out of the way, let’s focus on what this means for the future, primarily the future of the betting industry.
As we all know, betting is a huge industry that relies heavily on data. Bookmakers are making the odds for each game based on a complex algorithm that analyzes their previous matches, form, injured players, home-court advantage, and much more.
Even though this is a complicated algorithm that can predict the outcome of every match with high certainty, it is still far from the capabilities of AI.
How Will Artificial Intelligence Improve the Accuracy of Betting Odds
The biggest advantage for bookmakers when it comes to AI is the ability to create more accurate odds that will enable them to have more control over their profits. Data is the most crucial element of AI and whichever company controls the majority of the sports data, will control the market as well.
But if AI is so advanced that can predict the outcome of every match or race, how will this impact the betting industry?
Well, even though we talk about AI, we are still far from everyday use. At least for now. Additionally, no matter the amount of data that the algorithm analyzes, there will always be a chance for mistakes since there are many variables that can impact a sports game, from a sudden red card from tackle to weather change.
Since AI relies on data, and the prediction for each match requires different variables, we expect to see big betting companies developing multiple algorithms that collect and analyze data from different sports.
For instance, in basketball, we need the variables like home-court advantage, form, injuries, average score percentage, etc. whereas in horse racing we have different variables like previous form, weather conditions, tiredness, surface, competition, etc.
But if bookmakers will be able to make an accurate prediction for every sporting event, what would this mean for the bettors?
It would be unfair if bookmakers hold all the power when it comes to data analyze and AI, which is why we predict that we will see a lot more third-party software that will provide in-depth statistical information to users and a possible percentage for the outcome.
AI is currently in sports betting and despite being limited, it can still make some impressively accurate predictions. For example, an algorithm managed to win $11,000 that managed to beat the 540-to-1 odds of the Kentucky Derby.
This suggests that the AI industry is getting stronger and more capable of handling big data. AI will definitely find its use in the betting industry, but most people think that human input will still be at the center of attention.
So, before you bet on any race, like the upcoming Breeders Cup make sure to find the best odds, like the ones from TwinSpires: https://www.twinspires.com/breeders-cup/odds
Still, even though the odds might be accurate at predicting the contenders, make sure to double check for news about the event. Follow your gut, check for possible handicaps in competitors and then place your bet.
Whichever way this goes, we are sure that there will be a balance between the bookmakers and bettors when it comes to using AI for predicting the outcome of the match or creating more accurate odds.