The AI Tipping Point: What Sports Organizations Need to Know for 2025

Sports organizations have made major strides in recent years. Teams across the industry are transforming into data-driven organizations on the fan engagement, monetization and sports operations sides of the business.

This trend is perfectly timed with the AI hype cycle. AI is proving that it’s here to stay. While 2023 brought panic and wonder, and 2024 saw widespread experimentation, 2025 will be the year sports teams get serious about AI's applications. But it’s complicated: AI proofs of concept are graduating from the sandbox to production, just as some of AI’s biggest cheerleaders are turning a bit dour. 

Sports organizations that have prioritized modernizing their tech stack are now in a position to leverage their data to build a competitive edge using AI and ML.  

The bar has been raised in terms of fan expectations for attending live sporting events.  Attending a game live must deliver significant value for fans beyond the more convenient options of streaming a game on your mobile device or watching from your couch. More entities will use AI on their fan data to make attending games both more convenient and personally gratifying. This could take the form of more facial-recognition-enabled entry options, mobile alert updates on lines for bathrooms near your seating section, customized parking options and sponsor-enabled personalized merchandise and concession offers.  

Sportsbooks are already required to adhere to a robust set of compliance and reporting requirements while also balancing their profit and loss. Part of the complexity is based on varying rules by country and US state.  

As problem gambling remains a rising concern in more mature sports betting markets such as Europe and younger markets such as the United States, more federal and state guardrails will likely be rolled out — with more scrutinous auditing to police against potential bad actors. More sportsbooks will lean on AI to automate processes for managing these requirements and on machine learning to maximize revenue opportunities with minimal risk exposure.  

Leagues, federations and teams now have efficient solutions for ingesting data from any source, regardless of structure. By leveraging the data from more tracking devices, motion sensors, wearables, videos and other sources, they can strengthen their competitive edge. Likewise, sportsbooks require unique data sources to differentiate their betting products from those of competitors.

With a robust data strategy in place, sports organizations will have confidence in the quality and security of their data and lean more on AI to extract insights from past performances and outcomes and on ML to predict roster and revenue impact. 

Read the Snowflake AI + Data Predictions 2025 report for insights from seven other industry leaders and the latest big-picture data and AI forecasts from leaders such as Snowflake’s Head of AI,  Baris Gultekin, and Chief Information Security Officer, Brad Jones.