Artificial intelligence (AI)-powered prediction markets are being introduced by Slips, the firm behind a peer-to-peer wagering application that incorporates social gaming.

The Los Angeles-based business said that its new AI-driven prediction markets are extensions of its Pools (split the pot) and Heads Up (winner takes all) games. Since the company's founding, more than 150,000 "Slippers" nationwide have earned more than $6 million in total.

"Fueled by integrations with advanced large language models, these systems can now automatically generate new bets around trending topics, events, and storylines, audit and resolve outcomes in real time to ensure fairness and transparency, (and) scale prediction categories from sports and entertainment to politics, finance, and global events,” according to a press release.

Slips provides derivatives on economic data releases, financial markets, politics, pop culture, and sports, just like more established prediction market operators.

“The company also announced that these markets will soon extend into futures, commodities, and politics, all powered by AI tools that automatically track, generate, and settle bets,” Slips added in the statement.

AI May Help Prediction Markets

Because some event contracts are susceptible to ambiguity and manipulation, the convergence of AI and prediction markets may be a useful marriage.

For instance, the biggest company in the industry, Polymaket, was recently the target of mockery and accusations of manipulation over a yes/no contract about whether or not Volodymyr Zelensky, the president of Ukraine, would be seen in public in a suit. When he was seen wearing formal attire at a NATO conference in June, controversy erupted, and the contract wasn't promptly settled in favor of "yes" bettors. Such circumstances might be lessened by AI.

“Prediction markets are the natural evolution of peer-to-peer gaming, and AI is the engine that makes it limitless,” said Slips founder and CEO Jess Richman in the statement. “By removing the house, empowering our users, and tapping into generative AI, we’re creating the world’s most dynamic, scalable, and social real-money betting experience.”

Growing Interest in AI/Prediction Market Pairing

The marriage of AI and prediction markets is gaining traction. In June, Kalshi and Elon Musk's xAI announced an agreement wherein the chatbot Grok, which is utilized on Musk's X social media platform, will enter the yes/no derivatives market in addition to Slips integrating AI directly into its peer-to-peer games.

Investors are paying attention. According to PitchBook, Sunset Bay Capital, Trousdale Ventures, and Watertower Ventures are among Slips' backers. Jason Mercier, a six-time World Series of Poker champion, is another investor in Slips.