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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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Rewarding players with loyalty points based on their gaming activity

Introduction

AI and ML technologies are being integrated with various sectors such as the gambling industry to enhance the personalized services and business operations. Another particular field where these technologies are widely applied is the process of awarding the players’ loyalty points depending on their betting activity. This is a management decision that is intended to improve the customers’ involvement, commitment, and the bottom line. The application of ML AI in gambling sector in providing loyalty points to the players is also on the rise and encompasses the use of elaborate computational models that can be used to predict and fine-tune players’ rewards.

Challenges

There are however some challenges that are hindering the adoption of ML AI in its entirety in the gambling industry. First, the issue of player heterogeneity remains a challenge because it makes it difficult to capture and replicate customer behaviour. Second, data privacy policies do not permit the use and transmission of personal information thus reducing the areas where AI can be applied. Third, the absence of technical knowledge and proper infrastructure that is required to sustain complex AI systems is a major challenge. Fourth, the possibility of AI being misused for prejudiced purposes and preying on problem gamblers is a major worry. Last but not the least, another challenge is how to determine the ROIs of AI strategies since it is not easy to establish the difference that AI is making while controlling for other variables.

AI Solutions

In this context, AI solutions aim at addressing these issues and enhancing the process of rewarding the players. Such tools are predictive analytics that use Machine Learning algorithms to analyse historical data and make data predictions about future player’s behaviour. There are also personalized recommendation systems that help to provide rewards based on the player’s preferences. Also, AI systems can also be developed with privacy measures to ensure that data of users is protected. Some of the measures that can also be taken include the implementation of strong AI governance mechanisms to ensure that the technology is used properly. Last but not the least, AI-powered analytics tools can be deployed to assess the effects and ROIs of AI strategies so that the improvements are never ending.

Benefits

There are a variety of ways in which ML AI can be used in the gambling industry to reward players, each of which presents distinct advantages. First, it improves the ability to model player behaviour and thus the effectiveness of the reward systems. Second, it enables the delivery of tailored rewards, which in turn increases player engagement and retention. Third, it enables the proper handling of data in a way that will not violate the law and thus reduce legal complications. Fourth, it enables the proper use of AI in a way that will not harm vulnerable players and thus improve the image of the industry. Finally, it offers a sound approach for evaluating the performance and ROIs of AI projects and strategies to facilitate informed decisions.

Return on Investment

It is hard to give a specific ROI of using ML AI in rewarding players in the gambling industry but as per several studies and reports, it provides a high ROI. For example, a research by the McKinsey Global Institute revealed that organizations that apply AI in customer interaction, including loyalty programs, may enhance their revenues by 10-20%. Also, according to Accenture, AI has the potential of increasing profitability by 38% on average across the gaming industry by 2035. These statistics present a strong case of how AI can be beneficial in this setting.

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