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AI Use Cases

A collection of over 250 uses for artificial intelligence

A continually updated list exploring how different types of AI are used across various industries and AI disciplines,including generative AI use cases, banking AI use cases, AI use cases in healthcare, AI use cases in government, AI use cases in insurance, and more

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Fraud detection by identifying unusual betting patterns

Introduction

In the ever evolving and ever so active world of gambling which is a billion dollar industry globally, there can be no compromise on the aspect of fairness and integrity. In the recent years, the industry has leveraged the use of ML and AI to address fraud and identify suspicious betting behaviors. It is now possible for complex algorithms to process and assess large sets of data in real time, thus picking out any suspicious activities that could have been undetectable to a human observer. It also helps to safeguard the industry’s revenues and also protects the players by ensuring that the industry is free from any form of unethical practices.

Challenges

There are several issues that the gambling industry is struggling with in the fight against fraud. The first and probably the biggest one is the data issue. When millions of transactions occur daily, it becomes almost impossible to spot fraud manually. Also, fraudsters keep on updating their techniques and use technologies to make their activities hard to trace. They can work in several different accounts and platforms and therefore make it even tougher to identify. In addition, the industry has to find a way of implementing strong measures to identify and prevent fraud, while at the same time ensuring that the experience of the customer is not compromised. Too many security checks may discourage the genuine customers. Last but not the least, with the emergence of online and mobile gambling, there are new issues such as data fraud and protection.

AI Solutions

These challenges have been solved by the use of AI and ML. BetBuddy, for example, is a responsible gambling software developed by Playtech that implements ML to monitor players’ behavior and screen for problem gambling. Some of the features include anomaly detection which is used to detect unusual betting patterns and peer group analysis which is used to compare a player’s behavior with other similar players. On the other hand, Featurespace’s ARIC platform incorporates Adaptive Behavioral Analytics and works with machine learning to identify anomalies in real time. In addition, most of the companies currently engage AI to manage player identification and to avoid the cases of account hack. Thus, these systems are capable of using historical data and making predictions about the behaviour to identify frauds.

Benefits

There are a plenty of advantages of using AI in fraud detection. It is capable of processing large quantity of data within short time and with high level of precision thus minimizing errors that could be made by a human being. It also has the capability of picking out trends and relations which can be difficult for a human to do, thus making fraud detection better. In addition, the AI systems can be trained and therefore become even better. This not only decreases the probability of false positives but also enables the identification of new kinds of fraud. Furthermore, implementing the process automation, companies are able to save time and effort to work on other business tasks. And thus, by combating fraud, they can save their revenues, reputation, and customer base.

Return on Investment

The ROI of using AI in fraud detection is evident. According to a study by Juniper Research, the use of AI in banking and payments for fraud detection could cut costs by $12 billion annually by 2023. While specific figures for the gambling industry are not available, the trend is clear - AI is a powerful tool in the fight against fraud. Companies that invest in this technology can expect significant savings in terms of reduced fraud losses, lower operational costs, and improved customer satisfaction. Furthermore, by demonstrating a commitment to fair play and integrity, they can enhance their brand value and competitive position.

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