The BackPage Weekly | AI, the Sports Industry and Embracing the Opportunities

Written by Chris Paget, Ollie Raggett and Omri Bouton

In its infancy, AI was viewed as a tool to assist in simple data analytics and calculation.   However, such a narrow outlook of its potential is now very antiquated.  As our understanding of AI’s capacities has increased, so has the drive to push the limits of its potential; challenging it to provide new solutions and opportunities across a huge range of industries.

In the week in which Microsoft‘s ‘Sydney’ AI-powered chatbot hit the headlines for a variety of reasons (some more alarming than others – see our Content We’ve Enjoyed This Week below for more information on this), it felt like a timely reminder that we are rapidly entering a new era of ground-breaking AI opportunities.  With this in mind, we thought we’d take the opportunity for this edition of The BackPage Weekly to briefly examine some of the opportunities from a performance, commercial and community perspective where we feel the sports industry can - and is - harnessing AI to further develop, improve and push boundaries.  As Robin McCammon of Talent Pathway iD explains:

Galvanizing AI throughout marketing activation, fan engagement, gamification, in identifying (and fortifying) revenue streams, is essential for anyone in sport wanting to lead and stay ahead of competition

Performance Analytics

Teams (and athletes) are increasingly harnessing the power of AI to assist in performance analytics; technology which is increasingly being used by the wider market too.  Smartwatches and fitness trackers are not new, but wearables and apparel can now track more detailed types of physiological data and detect body movement, muscle stretch, and heart rhythm to help improve performance results. 

Moreover, by embedding AI technology within fitness equipment itself, training and recovery regimes can be more closely tailored and personalised on an athlete-by-athlete basis and adjusted in real-time depending on performance.  The ability to process and assimilate wide ranging and incredibly deep data sets in seconds has untold potential.  In an industry where marginal gains have significant cumulative benefits, the ability to improve results, data modelling and output, game strategies, injury prevention or faster injury recovery than a competitor could make all the difference.  How such AI will be deployed will be fascinating to observe. 

Talent Scouting

AI can process vast amounts of data quickly, accurately and – most importantly – without the bias and subjectivity of a human viewer.  While there are ongoing debates about the use of data-driven scouting against traditional qualitative-based methods, AI’s deeper and richer type of analysis and assessment offer stakeholders (who are willing to invest in such machine-based learning) significant and nuanced opportunities.  The slight elephant in the room regarding the use of such personal data is the legal basis upon which it is both processed and owned.  We anticipate that this legal angle will be a continuing, central theme in the development and deployment of such potentially valuable personal data sets.

Brand Activation

In an earlier edition of The BackPage Weekly, we explored the recent example of the Roblox x NFL activation which, among other things, demonstrated how motion capture can be successfully commercialised.  There are clear benefits to the use of AI in this context - allowing teams/athletes to unlock new revenue opportunities without the restrictions of physics to limit team, athlete or brand ambitions.  Recent similar exciting developments have included the upcoming NBA x Polycam LiDAR technology.  We’ll be writing further on some interesting IP developments and opportunities from a mocap perspective in a few weeks’ time.

Experiential & Gamified experiences

By its very nature, sports provide endless opportunities for gamifying experiences to engage new audiences.  AI gives the opportunity to bring in a younger audience and can be used to create long-lasting loyalty to an athlete/team/sport.  There are numerous examples of activations that have been increasingly successful in and around the launch of specific headline sporting events.  AI can also provide the ability to create immersive training experiences, giving unique opportunities for both fans (and even athletes themselves) to refine performance – such as the Nike Run Club app.      

Empowerment & Fan Engagement

AI can also give new engagement opportunities between fans and their respective teams by bringing them closer together through tokenised voting mechanisms.  These AI initiatives can help to incentivise a collective fan-base and engage them to participate in the sport and/or activity.  Participants can redeem rewards, exercise exclusive rights and engage in both real (and virtual) worlds.  AI gives greater access and provides teams (and athletes) with the ability to create authentic ways of communicating with fans that are unique to AI.     

The rate of growth of sports-technology and AI-based tools is providing ever increasing and diverse opportunities across the sports ecosystem.  It would be remiss and reductive to simply see the power of AI in data analytics alone – with huge value deriving from AI’s commercial and revenue-generating capabilities.  Robin further explains the alternative approach that is needed in respect of AI:

What is essential to success is a shift in mindset from collecting as much data as possible to interrogating the right data. Adopting the latter means AI providers have to help ensure the data being input is evidence-based, comprehensive, and holistic. As a result, their partners will gain unprecedented intelligent analysis, efficiencies, and the decision power to shelve less effective development interventions in favor of the parts of their systems that are really leading positive performance change.

While the technology itself is continually being developed, these opportunities are expanding into full immersive technologies.  We are of little doubt that AI technologies will continue to be harnessed (and enjoyed) by rights holders, teams, athletes and fans. The opportunities are endless and as with most things, those that engage with and adapt to these technologies will be best placed to capitalise, whatever their respective field or angle.      

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