Prospects and Role of ChatGPT in the Online Gambling Industry
Every couple of years always brings with it a new buzzword. For a time, it was fintech related, with ‘crypto’ and then ‘NFTs’, and now it seems artificial intelligence (AI) is having its say following the release of ChatGPT. It should be noted that AI is a term that has existed for decades.
Clever marketing, which appears to have really leveraged the publicity of Microsoft being heavily invested in this, may have over-blown the software, especially considering there are many others that it competes against. Others, indeed, have been around for far longer.
What cannot be debated is that the tool does have its uses - it is clear to see how it can be effective across many industries, especially from an efficiency perspective; however, there could still yet be several flaws in the Deathstar.
For years, many companies have struggled with their marketing efforts from the perspective of increasing efficiency while still making sure that they can appeal to their correct audience with their messaging.
Already there are businesses that are already seeing an impact, with many having converted to ChatGPT, especially for tasks as simple as creating adverts. It is perhaps this, that is the most obvious use for the technology; after all - the input is simple enough for the software to create an effective advert.
From a gambling industry perspective, this is certainly one direction that operators may move in if they do decide to leverage ChatGPT in some way. However, like anything - technology is only as smart as the people who use it, and this is no different.
Regardless of whether a business utilizes ChatGPT, it still needs to be prompted by the user, and if the technology is not prompted effectively, results will differ significantly. It is almost on par with an attorney drafting a contract and making sure that it is watertight with no loopholes.
The best users of the technology will make sure that they cover the input from every possible angle so as to create the best possible result. It is essentially relying on exponential and even high-end critical thinking to get the most effective output.
So, for an effective ChatGPT in the gambling industry, which is almost exclusively about conversion, it would mean that any adverts that are created using the technology would need to have at least a 90 percent chance of converting at least 80 percent of the audience that come across them.
Many operators also use a multitude of direct marketing channels, and as a result, this makes for the potentially effective use of ChatGPT. Each channel is different in terms of its output capability - email marketing, compared to SMS, varies in structure and length.
Because of this, regardless of whether ChatGPT is employed for gambling purposes, it would still need to be manually programmed in the right way for each communication channel.
How Could ChatGPT Change Online Casino Games?
One area where the software could play a major part is in the creation of new live casino and slot games - it would not be too much of a surprise if software providers started using this as a way to generate ideas.
For the last few years, AI has had a profound effect on game development, assisting in market research in order to help providers create games for the right audiences. With ChatGPT, this could effectively go a step further and make this even more intuitive.
Undoubtedly, one of the areas where ChatGPT can improve gaming operators is by targeting specific groups, such as high-rollers which can significantly affect the balance sheet.
In addition, the architecture of the technology could lead to games being developed faster, which would allow providers to exceed their annual quota while adding considerably to their profit margins.
It could also help significantly with in-game content, such as learning how players respond to certain prompts and phrases and then tweaking this to make the output more effective from a conversion perspective.
Impact of ChatGPT on Customer Service in the Online Gambling Industry
For the last few years, we have already seen chatbots employed in various industries, such as banking, to help pre-qualify and, in some cases, solve a customer’s problem, and ChatGPT could take this to the next level.
In the online gambling industry, customer service is a major part of how operators ensure brand reputation, and there are numerous methods available, with Live Chat proving to be the most popular.
Such is the nature of the online gambling industry, the speed that it moves at and the many different elements that are involved, it could be argued that there will still need to be a human element involved.
Hundreds of problems arise for customers in the industry, and it is hard to imagine that ChatGPT could solve each of these, especially when contemplating high-level issues such as fraud and how it responds to various queries surrounding this.
Many customers would still likely want a human element - people buy from people, after all and as a result, they may feel much more assured knowing that there is an empathetic component involved in the problem-solving process.
For basic, linear queries such as helping a customer register an account and providing assistance on how to make deposits and withdrawals, it is likely that this is where ChatGPT may be integrated from a customer service perspective in the industry.
Potential Effects from a Data Analysis Perspective
Many of the larger online gambling companies like Pragmatic Play and Evolution have a BI (Business Intelligence) department, which leverages technology to identify trends and player behavior to understand patterns that can then support their marketing department.
In some cases, this technology has been created in-house and, as a result, is proprietary software specifically for the company in question. Because of this, it could be argued that operators in the industry have been leveraging AI technology for years and are already ahead of the game.
However, a case could be made that ChatGPT can help to take this to the next level for existing operators that are already using AI from a business intelligence perspective or, indeed, provide those companies that aren’t using it with an affordable alternative.
Certainly, for new operators that may be working on a budget and do not have a BI department to speak of, this software could prove to be invaluable when it comes to data analytics, and the collection of such information could provide endless opportunities from not only a marketing angle but also, further productization and innovation.
At the minute, especially with the explosion of new gaming sectors - particularly the US online casino and gambling market - the industry has effectively turned into an arms race, and data is likely to play a key role for operators who want to take things to the next level and also, capture a substantial piece of the "cake".
Bonus & Promotion Generation
In applying its technology effectively, ChatGPT could also help operators create more effective bonuses and promotions by analyzing previous data and how effectively others have converted.
It means that companies can essentially adopt a more personalized approach when it comes to their efforts of coming up with bonuses and promotions. Via their analysis of data, there should be ample amounts in order to create several different kinds of bonuses based on how different segments of the market have reacted to campaigns historically.
As such, this can then be tailored in a way that makes existing customers feel special - as though companies are creating offers, especially for them, while it could also be very effective in retaining high-rollers or VIPs.
It has been suggested that the online gambling industry will move further towards personalization over the next couple of years, with gamification being mused as one way that operators may do this.
AI technology, such as ChatGPT, may help to make this possible, creating a more streamlined and efficient route that could save a considerable amount of time while potentially further increasing profit margins.
Could ChatGPT Affect the Live Casino Sector?
Well over a decade ago, one of the breakthroughs in the online gambling industry was the introduction of live casinos. They imitate a brick-and-mortar casino feeling by essentially accelerating the impact of a player’s experience, providing a more authentic offering.
It effectively brought table games to life via a live stream that allowed players to connect to an actual live dealer that, made it feel as though they were in an actual casino.
Following the development of ChatGPT, this, in time, possibly has the potential to have a significant impact on an operator’s live casino product. However, this will depend on a number of factors, including how effectively an operator can apply the technology.
A lot of it will depend on how well operators can collect player data during live casino games to then develop a ChatGPT-influenced chatbot to replace live dealers. However, there is a risk that comes with this.
One of the attractions of live casinos for players (certainly initially) is that it made playing casino table games online more real, and, as a result, this led to greater interaction that they enjoyed.
It also led to the assumption, because of considerably higher conversion figures, that players prefer to deal with people in real-time when they are playing blackjack for example, there is more of an authoritative and knowledgeable presence.
Role of ChatGPT on the Sports Betting Industry
Because, compared to online casinos, sports betting is essentially event-driven, it is hard to imagine how ChatGPT could have too much of an influence, except on a very basic level, such as those tools used in online casinos (customer service).
For years, questionable algorithms have been developed designed to predict the outcome of sports events that are in no way guaranteed, so certainly it is highly unlikely that ChatGPT could assist in helping a player make the correct predictions.
On the flipside, most of the biggest operators already have their own cutting-edge proprietary trading software that works in real-time to provide up-to-date odds during events, as well as generating odds prior to these taking place.
How Likely Are the Biggest Operator Brands to Start Using ChatGPT?
This, effectively, all comes down to efficiency. If a big operator brand believes that ChatGPT can seriously be of value, then it would not be a surprise for them to integrate the software into at least one element of their business function.
Currently, one of the departments that operators spend a considerable amount on is customer service - especially those which provide services to multiple countries and, as a result, need operatives that speak numerous languages.
If ChatGPT can be developed in a way that it is able to function across multiple languages, as well as being programmed to answer all possible queries effectively, then this could well be an option.
However, it does come down to the fact that customers may prefer to deal with people to solve their problems, especially in an industry that, for some, can be quite convoluted to understand. Though, if empathy can be programmed into ChatGPT, then this could help to solve this potential issue.
It should be noted as well, that big brands make billions every year, so for them, the quality of the service and products that they provide is the most important element. As a result, if what they are currently doing supersedes the potential effectiveness of ChatGPT (or, indeed, any other related AI technology), then they certainly won’t sacrifice this.
For an industry this big, that generates the kind of profits that it does, cutting costs such as employees to make way for technology may seem like an even more profitable solution in the short-term, though if this software drives customers away, the long-term effect could well be hazardous for the balance sheet and shareholders.
What is for sure is that it is still very early days in the online gambling industry as far as ChatGPT is concerned, and it is highly unlikely that any brand will make a spontaneous decision just because the mainstream media has jumped on the bandwagon of the next biggest buzzword.