Artificial Intelligence has had a transformative impact on the sports industry and reshaped how we engage and analyze sports. While diverse stakeholders in this happening sector, athletes, broadcasters, advertisers and fans benefit from prominent implementations, Trango Tech, as a dedicated sports app development company, its business analysts and product development strategists are always deeply interested in witnessing the strong business cases of these advancements.
If you too are a stakeholder in the sports industry interested in seeing artificial intelligence in action, here is a detailed blueprint covering:
The current market size of AI penetration in sports
Applications of Artificial intelligence in the sports industry
Advanced AI applications and real-life examples in the sports business side
Challenges and ethical considerations of AI applications in the sports industry
Integration of Artificial Intelligence with other emerging technologies for the sports market
Table Of Contents
Revenue-Centered Statistics About the Application of AI in the Sports Industry
57.5 million viewers in the US consumed digital sports content in 2021. This figure will reach around 90 million in 2025 (Statista).
Market size of the sports industry is estimated to be $512.14 billion in 2023.
AI-based sports analytics will see 20% growth between 2022 and 2031 (Statista).
In 2031, the market size of sports analytics will be around 16.5 billion US dollars (Statista).
How is AI used in Sports?
While AI algorithms have standard, independent applications, they actually work when embedded and integrated with other emerging and smart technologies – innovative hardware most of the time. Here is how AI is technically applied in the sports industries for data collection, analysis and forecasts.
1. Wearable Sensors, Smart Clothing and Biometric Monitoring Devices
Most wearable devices, like fitness bands, have sensors that track various metrics and vitals like heart rate and movement patterns. Then ML algorithms analyze this data and provide insights about performance deviation, fatigue levels, injury risk, and acceleration.
Like wearable gadgets, smart clothing also has AI chips embedded in the fabric that collect physiological data like temperature, and muscle activity – and analyze this data to understand the body’s reaction during training and moments in actual matches.
2. GPS Trackers and Motion Capture Systems
AI algorithms collect movement and location data to create insights based on speed and distance – then the predictive analytics models use these insights to optimize training load, and tactical positioning, detect inefficiencies, and provide feedback by reconstructing athletes’ movements in 3D.
3. Virtual Assistant Referees
These VAR solutions are AI-driven, advanced chatbots that help match officials in reviewing critical decisions for example foul plays and offside calls. With real-time video analysis software working alongside and footage evaluation, these VARs spot potential violations, and while 100% decision isn’t influenced by AI, their application gives an edge in confirmations.
AI Applications and Use Cases in Sports Business
Here are the top 10 applications through which artificial intelligence and its different models like generative AI and NLP, video processing and motion analysis have penetrated the market.
1. Sports forecasting
Result prediction is one of the most prominent applications of AI in sports where analysts use historical data and player statistics to predict various aspects of sports events. These algorithms analyze huge amounts of data, then:
Forecast game outcomes
Anticipate player performance
Assess injury risks.
AI applications identify patterns and trends and help teams and sports organizations in making informed decisions and strategic adjustments.
2. Fan engagement
AI is most popular for creating personalized experiences, for example, in cases of product recommendations and customizations. When applied to sports industry, these personalized experiences take sports broadcasting, stadium experiences and viewership to the next level.
For fan engagement, sports organizations and experience managers create insightful commentary, present real-time statistics and analytics, share highlights, and deliver immersive, tailored content. These applications come in handy for building deeper connections with sports enthusiasts and fans wherever they are: in the stadium or in their home theaters.
3. Game strategy optimization
After breaking down opponent teams’ game strategies, coaches, analysts and sports strategists can devise, improve and continually optimize their own strategies for specific game scenarios.
These algorithms collect and process data about:
individual and team performance metrics
game situations and contextual factors, such as weather and field conditions
opponent formations and playing styles
tactical adjustments and player positioning
substitution patterns
For example, AI-powered sports platforms provide valuable insights into team strategies, player strengths and weaknesses and potential game scenarios. This helps teams gain a competitive advantage and outperform their sports rivals through data-driven prediction and game strategies.
4. Talent acquisition and player evaluation
In professional sports, AI tools are reshaping talent acquisition and player evaluation. Using techniques like data analytics, video analysis and biomechanics, recruiters, coaches, and selection personnel assess player skills and fitness levels.
AI algorithms can provide more comprehensive insights for recruitment and scouting purposes based on player performance metrics, biometric data and gameplay footage. This way, the selection teams can comprehend the capabilities and suitability of candidates for specific roles within the team.
The result is more competent and competitive teams, cost-saving because of time and resource benefits, and an altogether efficient talent acquisition process.
5. Performance analysis and coaching
AI-driven video analysis works on tracking players’ movement, techniques and personal game strategies. These models utilize advanced computer vision algorithms, then analyze footage, and identify patterns as minute that might not even be apparent to human observers.
While these algorithms come up with specific insights, coaches utilize their conclusions to optimize their training programs by
tailoring exercises to address specific areas
preparing athletes to defend or attack in specific scenarios.
Based on performance metrics of players and their opponents, coaches then personally create feedback to address player development on individual and team levels. All in all, as the application of AI in sports, coaches can make data-driven decisions and maximize their teams’ strengths and exploit the opponents’ weaknesses to lead in the field.
6. Player health management, injury prevention and rehabilitation
AI-driven wearable and motion analysis technologies present a complete case study of AI in sports industry. These technologies continuously monitor athlete health and movement patterns, detect subtle to major changes and indicate injury risks.
For information about Augmented Reality in healthcare, our recent blog covers all the benefits and advancements these new technologies are making in the medical industry.
Take the example of smart compression garments and sensors embedded in shoes that can track biochemical data. These also record motion, joint angles and muscle activity. Processing this activity data, these sensors provide insights about potential overuse injuries and imbalances.
These analyses are going on in real-time, and so these technologies can flag abnormal patterns and further recommend athletes and their coaches, involved medical staff and care personnel about rehabilitation and recovery.
Going a step further, AI models that are popular for sending personalized recommendations can create assistance programs, diet plans and play routines that suit the specific rehabilitation and recovery needs of the individual player.
Going another step further, these programs can utilize immersive technologies like Virtual Reality platforms to create immersive training experiences that mimic real-world settings.
Building on rehabilitation and recovery programs, the medical world already knows robotic process automation – a system that helps medical practitioners replace knees with the help of robots and computers with more precision and accuracy.
While these tools together work to empower the medical staff, they also ensure better health management campaigns, speedy recovery programs and future injury prevention for participating and active athletes.
7. Referee decision support
Referees have to make timely and accurate decisions during games – and AI solutions can significantly help them do the same during critical moments that often determine the concluding outcome of matches.
Take the example of Goal-line technology. It utilizes AI algorithms and high-speed cameras to determine whether the ball has fully crossed the goal line. It provides referees with instant feedback to make accurate goal decisions. The usage of technology can result in reduction of controversial goal-line calls and increase in overall fairness of the game.
Take another example of VAR systems – these are Video Assistant Referee Systems that employ AI-powered video analysis to review key incidents such as goals, penalties and red card decisions.
Match officials can conduct on-field reviews and receive guidance from off-field video assistant referees for crucial decisions based on clear evidence and fewer errors.
As a result, these technologies help with upholding the integrity of the game by minimizing human error and enhancing the overall quality of officiating.
8. Ticket pricing
Venue management and ticketing support is a business use case of AI in the sports industry. The application enhances the overall fan experience because of KPIs like ticket price optimization, crown management, and venue operations.
In ticket pricing optimization, AI algorithms and models analyze factors like historical sales data, venue capacity, demand patterns, competitors’ pricing strategy, and other external factors like weather and speculation on game outcomes, to adjust the ticket prices in real time dynamically.
When insights reflect ticket demand with at least 95% accuracy, vendors and sports management companies can price competitively and ensure ticket accessibility for fans – all while maximizing their returns and revenue.
9. Venue management
AI-powered crowd management systems utilize the data from ticket sales and check patterns to match against the venue’s capacity. While this happens in the first step during ticket pricing, the final ticket sales vs venue capacity comparisons help traffic personnel optimize the entry and exit routes and procedures, minimize congestion, and ensure smooth management.
In addition to typical traffic optimization, venue managers do even utilize AI to manage processes like concessions and discounts, restroom usage, and security staffing.
10. Sports marketing
Artificial Intelligence applications, like generative AI models, Gemini and ChatGPT, and Midjourney have already reshaped how digital marketers create and distribute content.
Now when small business content marketing has seen this transformation, the application of Artificial Intelligence in the sports industry marketing definitely has a 360-degree impact. To be more specific, these AI tools are helping sports marketing teams:
Create marketing collaterals at scale in less time
Generate tons of marketing ideas at scale
Accelerate the marketing content production and editing process
Analyze vast amounts of data from social media platforms and fan interactions
Match and compare brand-specific data to industry trends
Comprehend and predict audience preferences, behavior and sentiment
Build targeted marketing campaigns for specific fan demographics
Maximize engagement and conversion rates
Report on metrics like brand mentions, Return on Ad Spend, engagement etc.
Identify and compare ROI of influencer campaigns
All in all, sports marketing with AI accounts for saving time, cost, and human energy and three of these resources can then be utilized and channeled to other areas of sports businesses and further boost the ROI.
Advanced Artificial Intelligence Framework for the Sports Industry
Going a step ahead of the typical applications of AI in sports, the artificial intelligence framework utilizes time-tested advanced technologies that enhance the various important aspects of the sports industry and improve the experience for diverse stakeholders. The framework has the potential to dramatically improve the fronts of performance analysis and talent identification, fan engagement and business development, athlete health management and injury prevention and strategic decision-making. Here’s an overview of the key components of the entire functional framework:
Machine Learning
● Injury protection and prevention.
● Performance analysis and player scouting.
● Health monitoring and athlete wellness.
Deep Learning
● Video analysis for tactical and opponent scouting.
● Biochemical analysis for movement pattern recognition.
● Action recognition for referee assistance and press conferences.
Natural Language Processing
● Sentiment analysis of fan feedback and social media chatter.
● Automated sports journalism and content generation.
● Automated sports commentary and analysis of player interviews.
Reinforcement Learning
● Training strategy optimization and adaptive coaching.
● Simulation-based training for strategic decision-making.
● Personalized training programs for individual athletics.
Predictive Analytics
● Injury risk assessment and prediction.
● Game outcome prediction and win probability estimation.
● Performance forecasting for talent development and scouting.
Computer Vision and Biochemical Analysis
● Player and opponent performance.
● Real-time strategy optimization.
● Simulation of game scenarios.
The Benefits of AI in Sports
AI benefits the sports community on six important frontiers:
1. Performance
Sports is 75% about athlete performance and AI enhances the factor by analyzing the player performance data to optimize training programs and improve game strategies.
2. Injury
Predictive analytics identify potential injury risks and help in designing preventive measures and personalized rehabilitation plans.
3. Viewership and Fans
AI-driven personalization enhances fan experiences through interactive content and virtual assistants at the heart of this engagement are powered by AI.
4. Talent
AI analyzes player statistics and performance metrics to streamline the scouting and recruitment processes.
5. Decisions
Computation intelligence in AI supports coaches and management in making informed decisions.
6. Media
Automation and real-time analysis take media coverage to the next level with statistics-led broadcasts that are more engaging and informative.
Impact of AI on the Sports Industry of Today and Tomorrow
On the same frontiers, we are witnessing the greater impact in forms of:
1. Performance Optimization
Teams that utilize AI for performance optimization experience improved player efficiency and better overall team performance. This translates into more wins and higher rankings.
2. Injury Management
Implementing AI in injury prevention reduces the frequency and severity of injuries. Teams and sports organizations utilizing the systems can keep their key players active, stable and energetic throughout the season.
3. Enhanced Fan Engagement
The impact of fan experience translates directly into fan loyalty. As a business, this higher attendance translates into better viewership and merchandise sales.
4. Efficient Recruitment and Scouting
Teams that utilize AI for recruitments and talent management get a competitive advantage in team composition – you can retain best players while onboarding and discovery new ones.
5. Improved Decision Making
Real-time decision-making supported by AI results helps with more strategic in-game adjustments. This is ideal for short and long-term planning.
6. Advanced Media and Broadcasting
While the world is yet to see generative AI in sports broadcasting, we have started seeing commentaries – and if more humanized, the media can attract more global viewers and advertisers across other business sectors.
Real-Life Examples of Artificial Intelligence in The Sports Industry
Here are the top 4 giants currently utilizing artificial intelligence in their sports-related business operations.
1. ESPN
ESPN is utilizing IBM Watsonx to create data-rich experiences for 11 million fantasy football managers around the globe. The sports giant, ESPN partnered with IBM in using its AI data analytics platform called watsonx to make sense out of game data and guide players, viewers and sports managers in this $9 billion market.
2. FIFA
While FIFA has already leveraged AI chatbots for fan engagement and viewer attendance, the company has set up technological advancement goals – and one such goal is to develop and implement a FIFA-led VAR (Virtual Assistance Referees) Solution to provide help to referees globally. In fact, FIFA has already begun working on it by leveraging a VAR for Hong Kong Premier League.
3. NBA
National Basketball Association is already building a high-quality database with on-court basketball data points. It plans to utilize this data for key insights and decision-making. Furthermore, the analytics will power the alternate telecasts of basketball games on NBA League Pass.
4. FIT Guard
The is a wearable device from Vandrico that collects, tracks and processes athletes’ health and movement-related data 24/7. Then with specific generative AI and NLP models, the data recommend meal plans to athletes.
Integration of Artificial Intelligence with Emerging Technologies for Next-Gen Sports Solutions
1. Internet of Things
While I have already mentioned injury prevention, here is a quick breakdown of how the detection works. IoT-embedded smart systems help with player tracking and performance monitoring. Sports equipment has IoT sensors: these wearables collect real-time data on athlete movements, biometrics and environmental conditions. Integrated with computational intelligence platforms, these applications process the data, then analyze the performance, detect fatigue and optimize training regimes.
2. Edge Computing
I have talked about game strategy optimization in the earlier sections. It’s the edge computing concept that collects and processes data in lightning-fast speed. Real-time data processing techniques like edge computing help optimize existing AI algorithms. Think small-scale Crossplatform applications here that have low-latency edge devices. These devices provide instant insights during live events as well as coaching sessions to power game decision-making and strategy optimization.
3. Blockchain
Best artificial intelligence apps are secure – and a good percentage of these apps utilize blockchain for transparency and integrity. The integration of decentralized ledgers helps with secure ticketing, contract management and transparency at betting platforms. While the application is pretty advanced at the moment – this is the future because the sports ecosystem will need verification and fraud detection, and that is possible with blockchain-based systems.
4. Virtual Reality
Immersive experiences are playing an active part in the sports industry and taking fan engagement as well as athlete training to a new level. Think about personalized content based on user preference and interaction patterns and for these engaging and interactive environments to come alive, sports app development companies are integrating sports AI and VR.
Future of AI in the Sports Industry
While the current applications of AI in sports are dynamic and intellectually appealing, the future looks super promising – and definitely more exciting for fans as well as revenue-led stakeholders.
1. Multi-factor Advanced Analytics
Ahead of motion and biometric analysis, integration of AI with neurotechnology for analysis of athletes’ cognitive performance comes up as most futuristic, yet advanced application of AI in sports. During training and competition, coaches could learn in real-time which players were taking pressure or mental fatigue, and how their reactions affected the game outcomes.
2. Personalized Training
Based on analysis that comes from machine and reinforcement learning, another futuristic application of AI in sports would be to forecast long-term career trajectories of players based on past performances and interests. Then it would be ideal to create enhanced training and coaching plans for year-on-year success.
3. Immersive Fan Experiences
While smart stadiums seem to be a thing of present with devices like oculus and virtual reality simulations, the future Ai and sports enthusiasts could work on innovative fan engagement that could take these experiences to fans’ homes and personal theaters.
4. Increased Scrutiny
And when with great power comes great responsibility, so does more scrutiny follow because of the penetration and ethical considerations of utilizing AI. Natural Language Processing, along with sentiment analysis could evaluate the social media interactions and overall digital communications of stakeholders like coaches and event managers about ethical violations.
Challenges and Ethical Considerations of Using AI in Sports Industry
As an app development company, our application strategy department performs idea validation for each app query we receive. Here are the 5 common ethical considerations we have highlighted so far in the AI sports app development processes.
1. Data quality and availability
Sports data is typically fragmented; and being qualitative, this data can sometimes be inconsistent and incomplete considering that players perform differently in different weather conditions, moods, and physical and mental states. That’s why, finding quality data is a challenge for AI algorithms to generate accurate insights.
As a solution, sports app development companies and technology solution providers often buy proprietary data from leagues, teams and sports organizations to handle the scope of AI implementation.
2. Data privacy and ethics
Wearable devices and sensors collect personal data, 24/7 through cameras. With their increasing use, more and more athletes are concerned about the handling of their personal data. Ownership and access to this data are also growing concerns in times when cyber-attacks are getting common. Companies and organizations utilizing this data are still creating compliance factors and regulations to help maintain trust and integrity and safeguard athletes’ identifiable data.
3. Bias and fairness
AI algorithms may inadvertently perpetuate biases present in historical data. This gives rise to biases in interpretability and issues about transparency and fairness, which then further lead to unfair outcomes as well as discrimination.
For reference, biases in sports data collection, analysis, and decision-making can dramatically impact player evaluations, game officiating, and talent identification. Addressing bias and promoting fairness in AI models is still a work in process but super important to create equal opportunities and re-establish fairness in sports.
4. Robustness and reliability
Factors like changes in player performance, team dynamics, and game conditions do affect the effectiveness of AI models. From a logical standpoint, real sports data is a result of specific conditions and decisions, whereas, AI algorithms recommend and give outcomes while keeping a lot of such factors constant.
This means that AI models helping the sports industry may lack robustness and reliability when applied to dynamic and unpredictable environments. While this is a challenge, continuous monitoring, evaluation and conscious refinement of data are possible solutions – but rather costly ones because the near-accurate processes will require immense mental concentration and intervention from humans.
5. Cost and resources
Implementing AI solutions in sports equates to a significant investment in technology infrastructure to efficiently help data analytics capabilities, and talent acquisition.
While small or underfunded sports organizations are already struggling to afford the upfront costs and ongoing expenses, added costs of AI adoption will limit access to advanced analytics tools and insights. In the long run, this expensive AI adoption can be a source of discrimination.
AI Adoption Considerations and Tips for Sports Companies
Here are effective tips for sports companies to navigate the aforementioned challenges and maximize their returns.
1. Data standardization and Partnerships
Invest in data standardization practices so it stays consistent across sources. Before applying advanced data cleaning to address inconsistencies, consider partnering with leagues and authentic sports organizations for accurate, first-hand data.
2. Transparent and Secure Data Collection
Communicate to athletes how their data will be collected, stored, and utilized, and obtain explicit consent where necessary. After consent, make sure to secure the received data and block any unauthorized access to prevent cyberattacks or unethical usage.
3. Audit and Compliance
Monitor and regularly evaluate the metrics of AI algorithms. Convey the purpose and methods to reduce bias of AI in sports with the data training teams.
4. Human-Centered and Reliable
Combine AI-driven insights with human ingenuity to improve the decision-making process. With time, make sure the AI algorithms follow training practices to function in more dynamic environments.
5. Cost-effective and Collaborative AI
Utilize open-source tools so that AI algorithms, software and sports apps are accessible by all types and sizes of organizations regardless of their financial status.
Develop an AI-Powered Sports App with Trango Tech
Considering the statistics, benefits, revenue potential and challenges in implementing artificial intelligence in the sports industry, an app that engages fans, devises strategies, supports athletes and can be a game-changer.
As a dedicated sports app development company, Trango Tech can help you take your AI-powered sports app from technical and business discovery to design, development, testing, launch and scaling. We are headquartered in USA and UAE – currently serving clients and partners that plan to create meaningful impact in the business ecosystem globally and generate ROI-driven technology solutions.
At Trango Tech, we have the technical expertise, niche experience and flagship app development processes that help us deliver value through technology. Our sports app development costs start from $5800 USD and we have different tiers to suit the financial requirements of diverse business sizes.
Planning to Launch a Sports App?
Trango Tech can help you bring your epic app development idea into a fully functional application that is sustainable and scalable for high ROI.
FAQs
Q. What is AI in sports?
This is basically the application of artificial intelligence and its advanced forms in the sports industry for analytics, predictions and marketing. AI applications also include the development and implementation of AI’s advanced forms, for example, machine learning, deep learning and natural language processing for the benefit of stakeholders in this sector: athletes, viewers, sports management companies, and broadcasting and media businesses.
Q. How is AI used in sports?
AI has strong applications in the sports industry. With the implementation of computational intelligence, AI-based marketing, natural language processing and generative AI, and integration with smart wearables, businesses are performing sports forecasting, game strategy optimization, injury prevention and recovery, ticket pricing management and fan success management.
Q. Can AI predict sports results?
Yes, with high-quality data, AI uses computational intelligence and predictive analytics to forecast the near-accurate possible outcomes of games, with win and loss chances based on percentages.
Q. What is an example of AI in sports?
Here are the top 3 examples of AI in sports:
IBM watsonx powering ESPN’s fantasy football analytics
FIFA introducing Virtual Assistance Referee (VAR) Solutions
NBA utilizing augmentation technology for creating analytics-based graphics for fans who love game stats.
Q. What is the future of AI in sports?
At Trango Tech, we envision the future of sports deploy rooted in Artificial Intelligence technologies with advancements like chatbot-based AI commentary, analytics-led real-time game strategy optimization, solid sports speculation and immersive fan viewership experiences.
Sharjeel Ahmed is a passionate tech enthusiast and an expert in SEO and content strategies who thrives on exploring cutting-edge innovations in the app development world. With a rich background in software development and mobile app technology, he brings a fresh and insightful perspective to how technology intersects with everyday life. Sharjeel has dedicated his career to sharing his knowledge and experiences through engaging, informative articles that resonate with both tech novices and experts alike. His professional journey is marked by significant contributions to several high-profile app development projects, showcasing his expertise and commitment to excellence. Sharjeel's deep involvement with various app development companies further highlights his industry knowledge and leadership.