Artificial intelligence-based computer algorithms are giving oddsmakers better data

The basis of artificial intelligence (AI) is carefully thought-out algorithms that can teach machines to do virtually anything. Algorithms are not a new thing and they have been taking over multiple tasks from the simplest ones to more complicated ones like self-driving cars. In the gambling industry, algorithms have already been used for sports betting, and, even though they are still in early stages, the precision they already have when making predictions is quickly reshaping the way gamblers approach the games. The best thing a bettor can do is to understand how algorithms work to take full advantage of all the opportunities they present.

In simple words, algorithms are mathematical formulas designed to organize and evaluate certain data in order to either solve complex problems or answer complicated questions. These formulas can be created to “solve” outcomes of sporting events that are based on data from past events that have been gathered already, like the team’s statistics. For instance, if the intention is to have an accurate prediction of an NFL game in particular, then this algorithm will most likely rely on data from the team, such as the winning percentage at home, rushing yards and even the successful reception percentage. The magic behind this technology is the data collected. Typically speaking, the more data there is to analyze, the more accurate the predictions are. These algorithms can be designed to access publicly-available information.

Once an algorithm has been figured out, it can be taken even further with machine learning. The implementation of this technology allows a machine to learn from experience and improve over time. This means that a machine learning algorithm can be trained to access and process the data it requires to make decisions, predict outcomes and respond to a specific request based on what was programmed, all without the constant intervention of manual inputs. As AI and data company Strategem explains, “It’s undeniable that these algorithms are improving rapidly, and they’re only going to get better with time. As they become more precise and accurately-engineered, more people will start relying on them.”