iGB Affiliate 66 Dec/Jan | Page 51

INSIGHT for patterns in both big and small data, because every consumer leaves invisible and visible digital data fingerprints of their behaviour. The objective of machine-based learning programs is to use data to improve the program’s understanding and adjust the program’s outputs — in real time. A good example of this is Facebook’s News Feed, which changes according to a user’s personal interactions with other users. If a user frequently tags a friend in photos, writes on his wall or “likes” his links, the News Feed will show more of that friend’s activity in the user’s News Feed, because of the algorithmic criteria. end up with an unviable product, because there would be far fewer in-play markets available to bet on. User journey mapping In user journeys and user experience — or the actual digital sales funnel — programmatic advertising and real-time buying based on hard data (or data science) are using more and more machine- based algorithms to increase new-player acquisition programs. In a different medium, the digital behemoths Amazon and Netflix lead the way in this, targeting audience cohorts with relevant and personalised advertising. AI for fraud prevention There have been many announcements recently from well-known gaming brands deploying AI-based innovations. Betsson said that its big-data team in Malta had developed various AI algorithms to solve different business requirements. Some were improving customer experience or the ability to detect fraud or to automate payment processes and customer segmentation. Margin optimisation Other areas impacted include in-play or live betting, which has enjoyed hugely increased interest from both operators and players. This usage makes absolute sense when you think about the thousands of computations involved in delivering in-play betting markets, never mind the cash-out and partial cash-out offers now so prevalent. These igaming businesses need to adopt a lean approach and reduce operational costs regarding headcount within the trading and risk teams, and improve both top-level GGR (gross gaming revenue) and bottom line margins. If they didn’t use machine- based AI, they would have to hire teams in their hundreds to monitor the flow of betting transactions and it’s likely they’d the QA engineer. AI is more objective and less prone to external, emotional or environmental factors, which could affect decision-based testing routines. Digital design for conversion enhancement Advances in AI to help design and optimise websites, based on users’ real-time interaction data (and their device), are already happening. Wave goodbye to front-end developers for desktop, tablet and mobile! And the future? Everyone shall become a digital number Indeed, everything and everyone shall be distilled down to a machine-based algorithm, just in the same way that childless couples can determine the sex and genetic disposition of a child, and so shall igaming and affiliate businesses determine the selection and hiring processes of people within the operational igaming teams. Personally, I believe this to be the elephant in the room. Why? Well, machine-based learning is only as good as the creator — the human who programmes the initial algorithms — and its code needs to be continually checked, by a human who needs to make a reasoned judgment on its validity. Or is it the case that another AI code will check the other system, and so forth, ad infinitum? “Because around 80% of software testing is repetitive and because manual testing doesn’t scale efficiently, AI is now transforming this process” Software testing Furthermore, with the growth of AI applications, perhaps one of the most significant constraints for both igaming operators and affiliates is software testing and the deployment of digital innovation to stay one step ahead of the competition. Because around 80% of testing is repetitive and because manual testing doesn’t scale efficiently (it requires manpower, itself a considerable cost for any business), AI is now transforming this process. It could also be argued that the software test cycle can be influenced by the subjective human behaviour of The future of AI application is within your hands as the creator. Choose it wisely, for the success of both your business and the people it employs and the customers it serves depends on it. MARK MCGUINNESS has more than 22 years’ experience in digital marketing director roles with both private and public igaming operators. He is currently the CMO of BetOlimp and the founder of esportsbet.com, a resource for gamers and sports bettors who wish to start betting on esports. iGB Affiliate Issue 66 DEC 2017/JAN 2018 47