According to Morgan Stanley's observations from the 2024 Technology, Media & Telecom Conference, DraftKings—an early adopter of artificial intelligence—may gain tactical advantages and enhanced productivity in the sports betting industry. Utilizing AI in data-driven operations and customer service could result in substantial margin expansion and improved competitive standing.

Early Adopters of AI Are Set for Expansion

In summary, Edward Stanley said during the 2014 Technologies, Media & Telecom Conference at Morgan Stanley that many companies are still hesitant to invest in AI.

However, DraftKings would have a significant advantage because they were among the first in the market to use AI for client service and R&D planning. 

A result like this could provide these businesses a chance to have a sizable margin by the second half of 2024 or possibly 2025.

Stanley claims that DraftKings is a tested, high-conviction business that exemplifies the first stages of artificial intelligence development. Another AI-driven early adopter business that is likewise in a good position to prosper soon is Sportradar. They were surrounded by a number of other businesses, including Amazon, Blackstone, Microsoft, Home Depot, and Meta Platforms, all of whom have received praise for their efforts thus far.

AI's Effect on DraftKings and Sports Betting

AI has the potential to be a key component of DraftKings' expansion plan by boosting output and opening up new revenue streams for the gaming company. According to the MST proclamation, the notion that early adopters of AI would reap the most rewards was introduced at Morgan Stanley's 2024 technology, media, and telecom conference. A list of specific recipients was generated using AI. Among the listed gaming companies, DraftKings and Sportradar are the namesake companies.

AI is currently bringing about a revolution in the sports betting sector, with applications ranging from fraud detection to maximizing revenues for customers of sportsbooks. Leading businesses like Sportsradar and Genius Sports efficiently process massive amounts of data with artificial intelligence, which collectively drives the industry's advancement and transformation. 

AI may have a huge impact on DraftKings; for example, it may easily incorporate media content into the platform and eventually enhance the user experience.

According to a report by Morgan Stanley's senior analyst for media and entertainment, advertising, and cable and satellite, Benjamin Swinburne, the three main participants in the streaming market are generally investing more in this kind of material. This strategy has worked well in attracting new customers and turning them into profitable advertising deals.

DraftKings's Prolonged AI Commitment

While many businesses are presently investigating artificial intelligence (AI), DraftKings stands out due to its long-standing dedication to the technology, according to data from Morgan Stanley.

DraftKings effectively evaluates correlations and data points necessary for its growingly popular same-game parlays by utilizing AI and machine learning. Notably, for almost ten years, the Boston-based company has included machine learning into its daily fantasy sports (DFS) competitions. DraftKings uses artificial intelligence (AI) to target ads and bets more precisely to its clients, increasing productivity. Furthermore, the technology facilitates the prompt detection and resolution of computer problems, highlighting its comprehensive value to the user.