AI in igaming: Navigating opportunities and challenges
Understanding AI’s challenges in igaming
As with any new technology, the lengthy list of challenges that AI poses can affect adoption rates. For operators, ever-evolving regulation and compliance requirements and the cost of integration can all come into play when considering using AI tools.
For Tanyenkov, there are three standout issues with AI that the industry should heed caution with, “The main challenges include issues of data protection and privacy, intellectual property rights, as well as liability for errors and consequences of decisions made with the participation of AI.”
Though these challenges should be considered, Tanyenkov believes that AI can have its advantages, especially when it comes to elevating player personalisation to the next level.
Using AI for better player experience
Even prior to the emergence of AI, players have learned to expect a personalised experience tailored to their preferences across promotions, devices, gaming habits, game types, payment methods, and support. According to a study conducted by Betting Hero, 75% of users found non-personalised betting apps difficult to navigate, and 80% of customers found personalised offers as “valuable” or “very valuable.”
As player acquisition costs climb ever higher and securing loyal players that return time after time becomes more difficult than ever, there’s a deeper focus on a VIP player experience that is tailored to a player’s specific wants and needs.
Tanyenkov believes this is just one of the ways that AI can help operators, “AI facilitates a more personalised gaming experience through engaging features like tailored game recommendations. It also streamlines compliance monitoring and operational efficiency and improves data analysis to support better business decisions.”
Using AI to manage bonuses and promotions
For years, operators would use a “blanket style” approach to sign-up bonuses and promotions, hoping a one-size-fits-all would get players through the door. Unfortunately, as player behaviours and habits evolve and more igaming casinos come to market, this strategy no longer works.
Personalised bonuses and promotions tailored to a player’s specific interests have shown to increase activity and engagement. But this is only possible with help from AI tools.
Tanyenkov believes that this is one of the biggest benefits to the use of AI, “AI can personalise bonuses and rewards in real-time based on user behaviour.
“AI can personalise bonuses and rewards in real time based on user behavior, design smart recommendation systems to select relevant games, and dynamically adjust difficulty to maintain interest. It is also appropriate to use AI for automated management of VIP programs, predictive analytics to identify churn risks.
“When it comes to marketing to acquire these players, personalised marketing campaigns always hit the mark, as they take into account user tastes and habits, and intelligent gamification systems adapt to the level of the player.”
AI tools help analyse vast amounts of data to assist operators in determining which promotions are effective. AI can then assist further in managing the bonuses by closely monitoring player activity and optimising bonuses by imposing bonus terms, including bonus amounts, type, wagering requirements, and withdrawal terms.
Still, in addition to all the advantages, Tanyenkov says it is crucial to address the potential problems linked to using AI in personalisation and gamification. “One concern is the risk of over-personalisation, which can lead to player fatigue. There are also privacy issues related to data collection that need careful consideration. Maintaining an authentic game experience can be challenging, especially when implementing complex AI systems, which can be costly.”
AI’s role in creating unique gameplay
According to the 2023 edition of iGB Executive and eGaming Monitor’s Casino Review, online casino players can choose from more than 40,000 unique games spread across almost 227,000 game positions on 2,450 unique igaming sites.
With such a vast selection of games, players can often find themselves overwhelmed, choosing to play the first games they encounter regardless of whether it suits their needs and preferences. By analysing gameplay data and studying the trends and behaviour of individual players, AI can provide each player with specific game recommendations tailored to their preferences based on game themes, in-game features, mechanics, Return to Player (RTP), volatility and betting limits.
“The evolution of AI-influenced games started a long time ago and continues now. A great example is crash games and instant games. With these, players have dynamic difficulty adjustment, real-time multiplayer synchronisation, crash point prediction, social feature integration, personalised volatility levels and hybrid modes with slots”.
The power AI in localisation
With the exponential growth of emerging markets like Africa and Latin America, the power of AI can be harnessed to localise igaming offerings. However, AI algorithms cannot fully comprehend local and cultural nuances that a human eye would detect.
Tanyenkov offers an approach that combines the best of both worlds: “The best strategy in this case is a hybrid approach, where artificial intelligence works “in tandem” with a specialist. AI’s strengths (big data processing, pattern recognition, behavioural analysis, performance tracking, and basic translation) show the greatest effectiveness under human supervision.
“The specialist in this strategy is responsible for understanding cultural nuances, interpreting local context, creatively adapting content, making decisions on sensitive content, building authentic connections, and final approval of cultural elements.”
Creating with AI a new paradigm of customer service
As players’ expectations are becoming increasingly complex, attentive customer service tailored to each individual player is crucial to harnessing trust and sustaining customer satisfaction and loyalty. Through AI and machine learning models based on analysing and predicting player behaviour, online casinos can tailor customer support to proactively engage with players during every step of the journey, offering assistance, guidance and solution to issues in real time.
PIN-UP.TECH is already using AI for this exact need, “For operational excellence, AI is used to optimise costs through automation, streamline workflows, and enhance resource allocation alongside automated reporting. In terms of customer experience,” explains Tanyenkov.
“AI improves support automation, provides 24/7 multilingual assistance, integrates smart chatbots, personalises the player journey, and develops advanced recommendation systems.”
However, as tailored customer service involves analysis and use of personal data, Tanyenkov notes that AI also brings privacy and data security challenges that operators must address before becoming fully reliant.
Regulation and compliance
The need to constantly stay up to date with compliance makes AI a powerful tool for overcoming many challenges brought about by evolving regulation. Igaming operators are harnessing AI to streamline KYC processes and enforce legal requirements such as game fairness, betting limits, advertising standards and bonus terms and conditions.
“All regulation should focus on data protection first and foremost, but not in any way stifle the development of this very important and breakthrough technology. In the future, regulation setting mandatory standards for AI transparency and explainability may be introduced.
“Regulations related to liability for damages caused by AI actions and a requirement to certify AI systems for use in certain sectors could also be introduced.”
Harnessing AI to provide responsible gaming
When it comes to providing safe and responsible gaming, AI can be harnessed to analyse large amounts of data and use predictive behaviour models to detect potential vulnerability. It can also trigger alerts on suspicious behaviour and offer treatment and solutions in real time.
Tanyenkov explains, “This includes developing methods for predictive user protection, such as real-time risk assessments, early detection of addiction signs, automated intervention systems, personalised betting limits, and behavioural health tracking.
“Additionally, AI will enhance smart personalisation through individual risk profiles, adaptive game complexity, personalised cooling-off periods, customised deposit limit offers, and effective time management tools.”
How to get the best out of using AI
For Tanyenkov, the key to the successful use of AI for suppliers and operators is to ensure the algorithms are fair and unbiased. With players’ loyalty more important than ever for increasing retention rates, building trust and maintaining it in regards to key factors like fair gameplay can make or break a returning player.
“To ensure the integrity of AI algorithms, it is important to apply all of the following measures comprehensively. Implement technical controls: organise regular algorithm reviews and audits, monitor standardised integrity metrics, conduct regular bias checks.
“Adhere to operational standards: ensure independent testing of AI systems, develop clear documentation of decision-making processes, conduct regular compliance reviews, and test AI for equal treatment of all demographic groups. Ensure customer protection, which includes transparent reporting of game statistics, clear communication about the use of AI, the ability to opt-out of personalisation, and regular assessment of the impact of AI on game fairness.
“Regular bias testing is crucial to identify and address any discrepancies. Additionally, there should be clear auditing of AI decisions to promote transparency. Ensuring equal access to features for all users is also important for maintaining fairness.”
The future of AI and PIN-UP.TECH
With AI continuing to evolve in the igaming space, there’s plenty for operators and players to look forward to. Tanyenkov believes that the key trends for 2025 will be gacha mechanics with AI, smart lootbox probability customisation, MOBA-style mini-games, interactive stream integration, community-driven events, and meta-progression systems.
“There will be even more to come, because the better we get acquainted with the capabilities of artificial intelligence, the more information we “feed” it, the more complex ideas we realise with the help of this technology, the more diverse the future of the industry will be.”
As pioneers for innovation across igaming, PIN-UP.TECH is continuing to learn from these trends and build them into its ongoing strategy.
“In the future, we will use AI technologies to improve personalisation engines, advanced predictive analytics, expand automation capabilities, deeply integrate AI across all platforms, improve responsible gaming tools, and much more.
“The amount of focus we have put on AI efforts is simple. We’ve created and staffed our own AI department, which is dedicated to analysing the most effective innovative tools and technologies and making them the new normal at PIN-UP.TECH.”