AI in iGaming is transforming the online gambling landscape, challenging operators to strike a delicate balance between cutting-edge technology and ethical responsibility. The advent of ChatGPT in late 2022 catapulted artificial intelligence into the public consciousness, but for iGaming software developers, AI has long been a focus of innovation and careful implementation.
Niels Berglund, software architect at Derivco, sheds light on the industry’s measured approach to AI adoption. “We’ve been experimenting with AI for years,” Berglund notes. “However, the regulatory complexities in the gambling sector necessitate a cautious stance.”
One of Derivco’s early AI applications aimed to predict player churn. Yet, as Berglund explains, “In our sector, using technology ethically is paramount. We must distinguish between retaining loyal customers and potentially exacerbating problematic gambling behaviours.”
This ethical consideration underscores the dual role of AI in iGaming. While it enhances personalisation, AI also serves as a powerful tool for identifying potential problem gamblers, enabling timely interventions.
The regulatory landscape presents another challenge. “Even before ChatGPT, we leveraged natural language processing to ensure compliance and operational efficiency,” Berglund says. This technology helps interpret and adapt to the ever-changing regulations across different markets.
Derivco’s commitment to AI extends beyond customer-facing applications. The company has developed its own Generative Pre-trained Transformer (GPT) and co-pilot, addressing data sensitivity concerns that preclude the use of public AI applications.
“These tools have significantly boosted our software development productivity over the past 18 months,” Berglund reports. “While the code output isn’t flawless, it allows for rapid iteration and improvement.”
The impact of AI at Derivco isn’t limited to technical departments. Even human resources are harnessing AI’s potential, demonstrating the technology’s versatility within the organisation.
As the iGaming industry continues to evolve, the integration of AI presents both opportunities and challenges. Operators must navigate the fine line between leveraging AI for innovation and maintaining ethical standards. With companies like Derivco leading the charge, the future of AI in iGaming looks promising, provided that responsibility remains at the forefront of technological advancements.