Artificial intelligence is changing the way we do most things and it is also changing the way sports are played.

For example, rugby side Leicester Tigers finished bottom of the 2019 Gallagher Premiership.

The side then turned to AI to rate player performance and model how different actions would impact the club’s win probability.

There has been no turning back since.

Thanks to AI tools crafted by sports data company Prospect and its subsidiary, Oval, Leicester Tigers won the 2022 Premiership.

There have been similar successes in cricket, football and other sports.

AI has several applications, including helping clubs in player scouting, performance analysis and planning tactics that were previously considered too complex.

This breakthrough also paves the way for enhanced fan-team interactions, meeting the rising enthusiasm for sports.

Motasem El Bawab, Chief Information Officer of N3XT Sports, said:

“AI is providing new opportunities for sports properties to commodify its fan and athlete data, deepening its understanding of its customers and stakeholders, and making their brand more appealing to investors.”

AI’s influence on sports could increase how much teams are worth.

According to Deutsche Bank analystssports mergers, acquisitions, and investment deals have soared in value by eightfold to about $37 billion (£29 billion) in just four years.

Sports have attracted big money, as seen with Saudi Arabia’s rapidly growing interest in football.

It’s intriguing how the timing overlaps with the period when interest rates surged due to high inflation, which drove down deal-making across various sectors.

AI is one reason why sports teams have emerged victorious.

But it also means sports teams must take responsibility for discovering the most effective data tools and using them more efficiently to maintain a competitive edge.

Deutsche Bank analysts Luke Templeman and Galina Pozdnyakova said:

“The detractors argue that sports statistics will be a zero-sum game once every team has them. We believe the opposite.

“We argue that the proliferation of sophisticated sports data analysis will level the playing field in leagues that are dominated by a small number of teams.”

How does AI Help Make Money?

There is a lot of consideration when valuing sports teams.

Apart from financial metrics, the league it plays in, the players and its track record also matter.

El Bawab said that AI tools at teams’ disposal open the doors for numerous opportunities.

He said: “All of these factors can significantly raise a sports club’s valuation by demonstrating potential for higher, more sustainable earnings.”

Concrete data is key.

For example, FC Barcelona uses footage from past matches to gauge the opponents’ behaviour patterns and devise game plans accordingly.

England’s women’s cricket team works with Prospect to use AI to pick the right players for different opponents by simulating mock matches under thousands of scenarios.

Jack Tozer, co-founder of Prospect, said: “For the most ambitious and innovative teams, there is an exciting opportunity now to exploit all of that [computing power and modelling tech] and dare to do things a bit differently.

Meanwhile, Mark Lillie explained that while sports teams are still preparing to increase AI usage, the technology will likely play a major role soon enough.

He told Fortune: “As AI becomes a standard tool for competitive advantage, teams with strong AI capabilities and associated benefits may become more attractive investments, potentially driving up valuations.”

However, he warned that no matter how powerful it is, AI “won’t solve every problem”.

Lillie added that “human expertise, intuition, and leadership will still be crucial for success”.

Engaging Fans

Whether it is football, cricket or rugby, fans are at the centre of sports.

Stadiums are packed and their support helps increase the popularity of different clubs.

However, there is still a lack of engagement according to SentientSport’s CEO Ryan Beal.

He explained: “You get a wave in a season where the match day happens and a few days before the match this all builds up to the game and then, post-match, this sort of drops off again.”

This might come as customised content tailored to fans’ preferences, allowing each individual to engage with their favourite team on a personal level.

AI tools are instrumental in enabling clubs like Manchester United to connect with a worldwide fan base in their own languages.

In 2023, Manchester United reached a historic revenue peak of £648.4 million. But there is potential for this figure to almost double if they leverage AI effectively.

Creating digital experiences to expand the fan base could introduce an entirely new source of revenue for sports clubs, which traditionally depended on income from ticket sales, sponsorships and TV rights.

Moving towards AI is well underway, with all sports teams discussing on how to use the technology.

The only difference is how they want to use it.

As more teams use AI, others will also start to adopt similar capabilities to keep up.

Beal stated: “There’s an opportunity for data to help smaller teams become big teams… [and] big teams to start monetising their global fan bases.

“So you either become a disrupter and everybody else catches up… or [you find] a new inefficiency to take hold of to stay ahead of the game, which is what makes sports so exciting.”