Regulators will soon demand iGaming industry to open the AI black box, experts say?

Garance Limouzy November 15, 2024
Regulators will soon demand iGaming industry to open the AI black box, experts say?

AI’s applications in iGaming span both improving player protection through responsible gaming and optimising player engagement and marketing efforts. However, as the technology evolves, this duality sparks debate. Can AI serve both purposes responsibly without tipping the scales? Will regulators soon require operators to open the AI “black box” to ensure that decisions are made ethically? At the recent SiGMA Europe conference, industry leaders weighed in on the subject.??

Paula Murphy, Business Development Manager at Mindway AI, explained how her company focuses on using AI and neuroscience to safeguard players. She recounted how their technology analyses player behaviour, identifying signs of problematic gaming. “We take operator spin-level data and combine it with expert human psychological analysis to train our AI,” Murphy said. “It’s about rebuilding context. Not all late-night play, for instance, indicates harm. By distinguishing patterns, we ensure operators interact with players who need help most urgently.”  

Mindway AI’s flagship solution, GameScanner, exemplifies this approach, providing automated, early detection of at-risk behaviours. 

AI to improve player engagement

Staffan Engstr?m, Co-Founder and CEO of Fieldstream.AI, offered a contrasting perspective. His company employs neuroscience and AI to optimise marketing strategies, helping operators target the right players at the right time.  “We use predictive AI to measure the long-term impact of marketing efforts,” Engstr?m shared. “For instance, we can analyse the effectiveness of a sponsorship from years ago and its current influence on player behaviour.”  

Engstr?m acknowledged the ethical tightrope: “It’s about creating a balance. While our tools aim to increase player engagement, collaboration with companies like Mindway AI ensures that this happens responsibly.”  

Murphy and Engstr?m agreed on the importance of a holistic view. “Risk assessments can inform marketing strategies, ensuring promotions align with sustainable gaming practices,” Murphy noted.  

Opening the black box

The need for transparency is the key to the ethical dilemma according to Murphy: “AI decisions must be explainable and understandable. Operators need to trust and act on the insights.” She added: “Black-box systems—where we can’t understand AI’s decisions—are unacceptable, developers must focus on transparency to build trust.” 

Oliver De Bono, CEO of Quantum Gaming, echoed this sentiment in a separate discussion: “Right now, AI supports automation. The decisions still lie with humans. But as AI evolves, its predictive capabilities will grow, challenging us to guide its use ethically”. He added “Soon, AI will be able to predict exactly which features lead to addiction. For now, humans make the decisions. Will they cross the line by using this information to keep players betting more and more? And when AI starts making its own decisions, will it cross the line?”

Experts agreed that regulators will soon address this issue. Operators will need to prove that neither they nor AI systems are making decisions based on the ability to predict addictive behaviours or exploiting this capability.

Cautious optimism

The implications of AI’s rise for the industry are broad. While Murphy championed AI as an indispensable tool for player protection, Engstr?m warned of its disruptive potential: “This is serious,” Engstr?m said. “Thirty percent of jobs will change within two years. AI is advancing so rapidly that it’s reshaping industries at lightning speed.”  

In contrast, Murphy emphasised the enduring need for human involvement: “While AI can automate certain tasks, high-risk situations still require human intervention. A pop-up or email won’t suffice in every case.”  

Despite their differing approaches, the panellists found common ground in the potential of AI to drive positive change. “Think beyond gaming,” Engstr?m concluded. “In fields like medicine, energy, and humanitarian aid, AI has transformative potential. But we must ensure it’s used responsibly, not just for profit.”  

As Murphy succinctly put it, “The key lies in balance: harnessing AI’s power for the benefit of players and the industry alike, without losing sight of the human element.”

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