OPINION | AI in iGaming: Walking the fine line between innovation and responsibility

OpenAI’s launch of ChatGPT on November 30, 2022 was an inflection point for the technology industry. In an instant, artificial intelligence (AI) was transformed from something that the person in the street knew of mostly through science-fiction films and books into a tool that nearly anyone can use in their day-to-day life. 

ChatGPT became, for a short while, the fastest adopted app in history. Hundreds of millions of people are now using generative AI and large language models for a range of tasks every day. But for those of us in software development and data science, AI is nothing new, despite the sudden widespread interest in its capabilities. 

The power of AI and machine learning has evolved along with the exponential growth in computing power and data volumes, with nearly limitless cloud storage and processing power unlocking massive advances in recent years.  

As a software developer that focuses on platforms and solutions for the iGaming market, we have been experimenting with AI for years before ChatGPT became a household name. Yet given the regulatory complexities that our clients in the gambling sector face, we have needed to take a relatively cautious approach to AI. 

One of our first forays into AI was the development of a solution that could help our clients to determine when a player was about to leave them. But in our sector, it’s important to use the technology in an ethical way. There is a fine line between retaining and rewarding a responsible player for their loyalty and exacerbating a gambling addict’s habit. 

This early application underscored our commitment to responsible use of AI. AI can, of course, enhance the player’s experience through personalisation. But it can also help online casino operators to identify potential problem gamblers, so that they can intervene appropriately, for example, by sending the player a message.

We have always needed to navigate a complex regulatory landscape, with vast differences across markets. Even before ChatGPT launched, we leveraged natural language processing (NLP) to ensure compliance and operational efficiency. This has helped us to quickly interpret and adapt to evolving regulations. 

As we move ahead with an aggressive strategy to put AI at the core of our business, generative AI promises to be a gamechanger. Because our systems and operations handle sensitive information on behalf of our clients, we can’t expose our data to public applications such as ChatGPT. 

We have developed a custom Generative Pre-trained Transformer—or GPT—and co-pilot of our own. These tools have enabled us to vastly increase productivity in software development over the past 18 months. While the code output is far from perfect, it enables us to rapidly iterate and improve. 

Teams within our business are pushing the boundaries of AI in ways that are unparalleled in iGaming. Even our human resources (HR) department is leveraging AI, illustrating the breadth of its application within our organisation. Our journey with AI is not just about staying current; it’s about leading the charge.

By Niels Berglund, software architect at Derivco

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