The global sports AI market is anticipated to surge to $19.2 billion by 2030, according to a new study.
Globant, a digitally native firm dedicated to transforming businesses through cutting-edge technology solutions, has released its latest report that explores the rising influence of artificial intelligence (AI) in the realms of sports and entertainment.
The paper emphasizes how AI could revolutionize fan engagement, enhance operational efficiencies, and amplify economic impact, especially in regions like the Gulf Cooperation Council (GCC), where investments in sports and technology are rapidly escalating.
Rapid transformation in the GCC sports economy
The sports economy within the GCC is experiencing swift transformation, propelled by substantial investments and strategic alliances. In recent years, governments in the GCC, particularly Saudi Arabia and the UAE, have committed over $65 billion to position the region as a global leader in sports development. This investment trend is expected to yield an AI-driven value generation of up to $8.5 billion for the GCC’s media and entertainment sector by 2030, underscoring the region’s preparedness for technological advancements in Sportainment.
Changing demographics and consumer preferences
Federico Pienovi, chief business officer & CEO for APAC & MENA at Globant, noted that the young demographic in the GCC is redefining the sports experience and creating a strong demand for digital and interactive engagement. He pointed out that a significant percentage of Gen Z and Millennials prefer to engage with sports beyond traditional venues and are leading the way in adopting new technologies. In a rapidly evolving region, he emphasized that it is not just about keeping pace; integrating AI is essential to avoid falling behind.
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Role of AI in fan engagement
Artificial Intelligence is transforming fan engagement within the sports sector. Personalized, AI-driven interactions have demonstrated the ability to generate four to seven times more revenue compared to conventional methods. In the United Arab Emirates, where a high percentage of consumers actively engage with sports, AI-enhanced stadiums are elevating fan experiences through real-time data and interactive content.
Challenges in AI adoption for sports organizations
However, despite its potential, numerous sports organizations face challenges in adopting AI, including complexities in data management and a shortage of specialized talent. Globally, a significant percentage of sports and entertainment organizations report lacking a generative AI strategy, highlighting a substantial opportunity for growth.
Future prospects for AI in the GCC
Pienovi remarked that AI is revolutionizing the Sportainment landscape, allowing for a transition from traditional fan experiences to much more personalized and engaging interactions. He further added that the GCC, with its commitment to digital infrastructure, is well positioned to embrace these AI-driven innovations that can benefit fans, brands, and sports organizations alike.
Economic growth and innovation in sports
Moreover, as the GCC enhances its digital infrastructure and continues to invest in sports, AI is poised to play a pivotal role in driving economic growth and enriching fan engagement. The adoption of AI will further enable the region to attract international partnerships, fortify local sports ecosystems, and emerge as a leader in innovative sporting experiences.
