Last updated: March 15, 2024
Morgan Stanley’s insights from the 2024 Technology, Media & Telecom Conference suggest that DraftKings, an early adopter of AI, could benefit from increased productivity and strategic advantages in the sports betting sector. Leveraging AI for customer support and data-driven operations could lead to significant margin expansion and competitive positioning.
On the overview, Edward Stanley at Morgan Stanley’s 2014 Technologies, Media & Telecom Conference stated that many businesses are still reluctant to commit to AI.
Nevertheless, DraftKings being among the pioneers of AI in the industry and using it for client support as well as R&D planning would be an important advantage for them. Such an outcome might create an opportunity for these enterprises to have a considerable margin by the second half of 2024 and even by 2025.
According to Stanley, DraftKings is a proven high-conviction company that represents an early development stage of AI technology. Additionally, Sportradar is a similar AI-driven early adopter company that is also well-placed to succeed shortly. They stood in a row of other companies as well: Amazon, Blackstone, Home Depot, Microsoft, and Meta Platforms which have already won positive feedback for their activities in this area.
AI promises to play an instrumental role in the DraftKings growth strategy by helping to improve productivity and unlock profits for the gaming firm. Morgan Stanley’s 2024 technology, media, and telecom conference presented the idea that AI early movers would notch the most wins, the MST declaration claims. AI identified certain beneficiaries and them listed. DraftKings along with Sportradar are the named gaming firm among those listed. AI is expected to help them very much.
AI is presently bringing about a revolution in the sports betting industry having cattle in areas including fraud detection and utilization to make profits for sportsbook customers better. Pioneering companies such as Sportsradar and Genius Sports effectively crunch large data volumes using AI, which together propel the sector’s development and revolution. For DraftKings the impact of AI could be immense; for instance, AI can improve the consumer experience ultimately, and integrate the media content into the platform with ease.
A report by Benjamin Swinburne, lead analyst with a focus on media and entertainment, advertising, and cable and satellite at Morgan Stanley, indicated that the three major streaming industry players are generally increasing their investment in this type of content. This tactic has proved successful in bringing a fresh client base and converting these into valuable advertising contracts.
According to insights from Morgan Stanley, while numerous companies are currently exploring artificial intelligence (AI), DraftKings stands out with its longstanding commitment to the technology.
Leveraging AI and machine learning, DraftKings efficiently analyzes correlations and data points essential for its increasingly popular same-game parlays. Notably, the Boston-based company has integrated machine learning into its daily fantasy sports (DFS) contests for nearly a decade. DraftKings utilizes AI to enhance productivity by targeting advertisements and specific wagers to customers more effectively. Additionally, the technology aids in swiftly identifying and resolving issues with computers, underscoring its multifaceted utility for the operator.
Marilyn Chavez is an associate researcher at the Missouri University of Science and Technology, where she studied the mathematical probabilities and aspects of casino games like slot machines. She’s written several case studies which have been published by multiple problem-gaming institutions to help spread awareness about the dangers of online gambling and gambling addiction. She also presented a 2019 Ted talk on the topic of gambling among minors.
