AI Development and Its Impact on the iGaming Industry in 2024

Artificial intelligence (AI) technology has changed the workplace in many industries. The skills required in a job have dramatically changed. AI has been introduced into healthcare to facilitate the detection of disease, document automation, and the storage of health data, which keep everything more organized than before. Customer support across all industries is more effective in targeting people’s needs thanks to AI. AI has also improved industries like security, education, and human resources.

AI in the iGaming industry is being introduced in the software and top rated online casinos. AI has proved to be extremely beneficial for keeping the industry reputable. For a human to monitor and red flag fraudulent behavior or problematic gambling, it would be time consuming and not effective. AI development has so far been focused on analyzing player behavior, effective chatbots, and a personalized iGaming experience for individual players. Here’s what you need to know about how AI is impacting the iGaming industry.

General Insights into the AI Market: Official Data and Forecasts 

Here’s an overview of the current statistics along with the forecasts when it comes to AI on a world scale:

• As of 2023, the global AI market size was close to $208 billion. It’s projected that by 2030, the market size will reach nearly $2 trillion (Statista, 2023) 
• In 2023, over 25% of investments in US startups were to an AI-related company in 2023. By comparison, AI startups only received about 12% of funding between 2018 and 2022. (Crunchbase, 2023)

• Countries that are currently using AI the most are China and India.
• Worldwide AI startup funding reached $20 billion in February, 2024.
• 2024 to 2030 – It’s projected that the AI market is going to grow at a compound annual growth rate of 28.46%. 
• The market size is predicted to reach $309.9 billion at the end of 2024.

• It’s estimated that 133 million new jobs will be created by AI by 2030. 
• Two-thirds of jobs may be partially automated by AI with most jobs being complimented by it as opposed to substituting. (Goldman Sachs, 2023)
• It’s projected that by 2030, AI will contribute $15.7 trillion to the global economy.

Key trends that are driving growth of AI technology include increasing computing power of AI and its ability to store information. There are new algorithms that are allowing programmers to grow and improve AI applications like chat bots extremely quickly. There are many industries that are using these new advancements to create better automation to their business processes. Intensive AI programs are able to get better insight into customer actions and how their products are best being sold. Information that’s collected and organized by AI makes it easier for decision makers to make solid decisions. 

AI is expanding to a variety of different sectors including finance, healthcare, data science and analytics, cyber security, manufacturing, and iGaming. Organizations within these industries are piloting or fully implementing generative AI solutions based on each company’s needs. Corporate strategies agree that AI would be critical for the success of any business.

AI Development Trends in the iGaming Industry 

AI is a leading technology in the iGaming industry because it saves operators money with the ability to increase how much a player spends on their site. Here are some statistics to show how AI can be a cheap option that increases profits and efficiency.

AI tools are helping to build better casino games quickly. Variations have become unlimited elements that have allowed for better characters, environments, and levels. Automation to develop hyper-realistic design elements. 

AI player profiling pinpoints what each customer is playing to build an accurate player profile. Operators can take this information and offer recommendations and bonuses. Not only can the casino operator benefit from more revenue, it can also boost user engagement and loyalty. AI is able to identify highly skilled poker players that would potentially play for longer if they were competing against high rollers. It’s possible for AI to determine this through player behavior.

AI data security is one of the most essential resources that costs very little. AI elevates security measures through full automation and with great efficiency. The AI algorithms do real-time data analyzing to detect and prevent any threats. It identifies suspicious activity and detects potential money laundering schemes. AI is able to pinpoint any vulnerabilities in the system and identifies cyber-security risks. These real-time capabilities are 24/7 and can immediately deliver a secure gaming experience that creates player loyalty and trust.

AI chatbots offer predictable support issues quickly and efficiently even when there are a lot of players looking for help. This AI technology is being widely used now and saves operators money because there’s no need for a real person to answer the simple questions. It’s often the first level of support and reduces the need for a human support agent by up to 20%. Labor hours are greatly reduced as a result of this tool while giving players excellent support.

Top AI Solutions in Demand 

The AI solutions for iGaming operators are making games more exciting with personalized play and immersive experiences. Responsible gambling is more efficient because AI is able to easily monitor problematic gambling. This helps the operator to assist players in the prevention of compulsive play. AI is being integrated to prevent fraudulent activity and also the fairness of games. This is because AI creates algorithms to ensure casino games are at the right level of randomness. This instills more trust from players and operators are certain that their casinos are adhering to the guidelines of their license. 

AI has been integrated into the iGaming industry in a few different ways that are enhancing the player experience and reputation of online gambling sites. Here is where AI is currently helping in the iGaming industry:

• Predictive Analytics: AI algorithms can analyze huge amounts of historical data. It can then predict the outcome in sports betting and casino games. This helps the bookmaker and casinos set their odds accurately, which improves the operators profitability.
• Fraud Detection and Prevention: AI systems are able to identify patterns of fraud like cheating and money laundering. This is far easier for AI than for a human. As there are people trying to use AI to commit fraud, it’s essential to have anti-fraud AI working in the industries favour. 
• A More Personalized Gaming Experience: AI can detect the behavior of the user and their preferences. This information gathered allows online casinos to offer a personalized experience. The online casino is able to offer suggestions of games based on past games played. From information AI delivers, a casino can also tailor promotions and actually change the interface based on the player’s gaming habits. 
• Chatbots and Customer Support: Chatbots that are powered by AI are able to handle most of the inquiries a customer may have. They’re able to assist with questions and offer information over any device or platform. This makes it possible for online casinos to offer 24/7 support and fast response times. 
• Responsible Gambling: AI is capable of monitoring player behavior in a methodical way. As opposed to having an opinion on responsible gambling, AI detects what it is programmed to detect. Operators are able to implement their responsible gambling measures with the help of AI to effectively intervene when there’s a hint of compulsive gambling.
• Game Development and Design: AI is being used to create immersive experiences for players. This includes simulations so real that a player feels like they’re at a real casino. 
• Risk Management: AI is able to help assess and manage risk for both the player and operator. AI is capable of managing odds and foreseeing potential issues while adapting strategies to reduce risks.
• Dynamic Pricing: AI is used for dynamic pricing as it can quickly adjust odds in real-time with all the factors in mind. This includes player injuries and team performance. 
• Biometric Authentication: AI can be used to authenticate players through biometrics like face recognitions. This is an additional layer of security for online gambling sites. It helps prove the player is who they say they are and prevents fraudulent activities or underaged players.
• Regulatory Compliance: AI helps to ensure that online casinos are adhering to the requirements of their license. This includes the monitoring and reporting of suspicious activities like potential money laundering. 
• Enhanced Security: AI algorithms are enhancing cybersecurity measures that protect platforms from hackers, cyber attacks, and security breaches. 

Comments from Industry Subsector Representatives 

What AI tools are you currently using, and where do you see their potential?

Oleksii Shulhin, Product Studio Manager of ELA Games:

“As a game provider, we focus on creating games that offer the best possible experience for the player. We embrace AI and use it when creating game documents, developing game prototypes, generating ideas, brainstorming images in the sketching stage and generating code for simple tasks. The goal is to speed up our processes without compromising quality when performing routine tasks. It’s important to remember that we use AI within the strict constraints of our company’s security policy and refrain from using any potentially harmful information that could hinder business objectives.”

Playamo team:

“We use AI-driven gaming content selection for players. Each player gets his own variety of slots depending on their preferences and gaming history. That helps to make the player’s experience truly unique and prolongs their time spent online.”

How do the features you’re using or planning to implement in your company affect the market overall?

Svetlana Kirichenko, Head of Marketing at Slotegrator:

“It’s clear that AI offers the iGaming industry the most powerful solutions for analyzing and predicting player preferences, which is incredibly useful when it comes to increasing player retention. With the help of AI, operators can create such immersive and thrilling experiences on their platforms that players would never dream of leaving. 
Another prominent application is player segmentation. What does that mean? In addition to analyzing a player’s behavior and preferences, it’s also important to understand the level of their loyalty to the casino and know what to offer them. By using AI to analyze player demographics and behavior, casinos can organize players into groups based on criteria such as average bet size and the level of risk they pose to the casino. 
Because of the huge amount of content on the market, this approach will help to identify player interests, thus giving a useful recommendation to a player who is looking for something new and exciting to do. Obviously, this application of AI has tremendous potential. 
We are also seeing more and more companies and services offering AI solutions for iGaming, indicating that this is more than just a trend; it’s the dawn of a new era. But as AI becomes more and more commonplace, there’s an increasing need to develop truly innovative solutions, especially as every second company implements cookie-cutter AI features. The right collaborations could potentially yield such standout solutions.
In conclusion, all of these solutions are fundamental elements for the development of safe gaming. The iGaming offer itself becomes clearer and more understandable. That’s why AI solutions elevate products in the gambling market to the next level.”

Max Krupyshev, CEO at CryptoProcessing:

“AI is revolutionizing crypto payments, bringing significant benefits in efficiency and security. By automating manual tasks like data entry and verification, AI reduces transaction times and ensures quick, secure payment processing through optimal routing. Its advanced algorithms excel at detecting and preventing fraud by analyzing transaction flows in real-time, flagging irregularities that suggest fraudulent activity. Additionally, AI enhances the KYC process with sophisticated data analysis, ensuring compliance and regulatory adherence, thereby boosting the speed, security, and cost-effectiveness of crypto transactions, and increasing consumer trust.
Despite its advantages, AI comes with challenges such as data privacy concerns, complex and costly implementation, scalability issues, and the necessity for human oversight. At CryptoProcessing by CoinsPaid, we leverage AI to enhance productivity, streamline operations, and optimize departmental workflows. Our marketing team benefits from AI-powered chatbots and virtual assistants, while AI tools support video content creation. We are also exploring predictive analytics to foresee market trends, mitigate risks, and identify opportunities. As AI and crypto payments evolve rapidly, their synergy promises a more automated, efficient, and secure digital economy, transforming our perception of crypto payments.”

Considering the unique aspects of the iGaming market, will implementing AI technologies be something that attracts or repels players?

Paul Buianov, Founder & CEO at BetCare

“Undoubtedly, over the long term, I not only anticipate but also firmly believe that AI will make a significant contribution to the development of the iGaming industry. This impact will be largely positive. The advantage of AI lies in its ability to quickly and efficiently process massive amounts of data, thereby replacing many technical staff. Consequently, AI can generate more accurate market segment, geographic, and player-specific insights.
AI will also be extremely useful in systematizing existing data from operators, as I mentioned earlier. All of this aims to make the player’s experience more comfortable, convenient, and beneficial. This includes faster access to relevant offers and personalized recommendations, whether it’s games, payment solutions, or other services.
We can observe the direction in which AI is evolving within the industry, particularly in iGaming. While the ultimate outcome remains to be seen, one thing is certain: the deeper integration of AI is unlikely to deter players. People play because we all seek leisure, joy, excitement, and victory. The emergence of new technologies is unlikely to change this fundamental human nature. The goal, whether through AI or our own efforts, is to enhance the convenience and enjoyment of players’ lives.”

Oleksii Shulhin, Product Studio Manager of ELA Games:

“AI will be extremely useful in creating better games and gaming environments for players, ultimately attracting a wider audience. With AI player profiling and user behaviour analysis, operators can create a personalised gaming experience, boosting player retention and engagement. With AI-enhanced forecasting, game developers and operators can identify which game types and themes resonate with players the most, thereby developing and curating a catalogue of enjoyable and high-quality games. As AI technology continues to advance, we’re confident we can implement it efficiently to optimise our processes and focus on creating incredible experiences for our players.”

Our Conclusion 

AI is transforming many industries, and this includes the iGaming industry. It’s becoming much easier to offer a better online product with automated AI systems that can do much more than a human ever could in much less time. Player experiences are being elevated and odds are improving. It’s making the industry more secure and making it possible for compliance to be held up. 

AI is going to increase as more tools are created specifically for the industry. So far what has been produced is both beneficial for the player and the operator. For iGaming operators and stakeholders, AI can help improve your bottom line and give you additional credibility. Everything is automated and more efficient, offering an excellent user experience that’s secure. CasinoRIX experts believe that using AI is going to keep online casino operators competitive as soon enough, every aspect of iGaming will be utilizing AI.