Major League Baseball and Other Sports Adopt AI

It has been more than a century since professional sports teams and fans first experienced a glimpse of early technology at the game – the rollout of the digital scoreboard. Today, artificial intelligence (AI) and Big Data are driving the sports industry well beyond the use of LED lights, advertising potential, or even instant replay.

In 2022, the National Football League (NFL) partnered with Amazon Web Services (AWS), a subsidiary of Amazon.com (AMZN), in the development of a “digital athlete” tool that uses AI to generate simulations and algorithms to predict and prevent player injury. The National Basketball Association (NBA) announced in 2020 that Microsoft (MFST) had become the league’s “Official Artificial Intelligence Partner,” a multi-year collaboration producing a highly personalized engagement platform for fans of the sport. Leading golf equipment manufacturer Callaway (MODG) has turned to the technology to redesign clubs and up the game for professional golfers across the globe.

Major League Baseball (MLB) is a sports association that has shown significant movement in widespread use of AI across the organization. Specifically, MLB officials and technology companies are using data-driven analysis and tools to enhance player performance, strengthen game-playing strategies and even support the pitch-ruling role of the umpire.

Data on the diamond

Baseball has always been a sport where the players have been categorized by things like runs batted in (RBIs) and a pitcher’s earned run average. Technology has trickled in over the last two decades allowing coaches to analyze their own players as well as the performance of other teams. But now, analysts and coaches have another opportunity to leverage the massive amounts of actionable and more accurate data that is collected from the wearable technology of sensors and tracking and radar equipment installed throughout stadiums.

All 30 MLB stadiums in the U.S. are equipped with Statcast, performance data tracking technology that focuses heavily on pitching as well as assessing other players on the field and at bat. Statcast’s technology was updated in 2020 to integrate the 12-camera Hawk-Eye system that is responsible for more in-depth “pose tracking,” which evaluates more precise movements of the players.

Danish sports technology company Trackman is also making strides in the industry with its innovative use of AI and machine learning (ML). The company’s technology is bringing players in baseball and golf a combination of radar technology that collects data that can be used on an app to analyze performance after a game and strategize for the next.

The tech company’s automated ball and strike system (ABS) can analyze the path and placement of pitch from the pitcher to the catcher. The data collected from each pitch is then passed along to the home-plate umpire in an earpiece. While the technology has not reached the major league level yet, MLB commissioner Rob Manfred told ESPN he is hopeful the technology will be behind the plate soon.

With the technology from Statcast and Trackman, and others similar to them, data analysts and coaches can not only use the technology to gain insights into their own team’s performance, but also leverage the data to learn more about identifiable gameplay patterns of opposing teams, giving them a competitive advantage.

Off the field benefits

The Boston Red Sox is one MLB sports franchise that has fully embraced big data analytics and the use of artificial intelligence, both on and off the field. In addition to Statcast, the team has partnered with Boston-based AI platform, DataRobot. According to the company, the Red Sox organization’s use of AI has enabled the franchise on-the-field advantages including assessing risks of injury, discovering talent and recruitment opportunities, exploring player positioning and more specialized coaching needs. But AI has also elevated efforts off the field, including analytics for:

• Ticket pricing
• Overall business intelligence
• Concession operations
• Customer involvement and retention
• Sales leads and more

The ability to quantify all aspects of a sports organization as a whole, whether it’s about the players or the marketing strategy or the hot dog sales in the bleachers, the use of AI and ML are shaping up to provide a healthier bottom line.

Who’s keeping score?

When it comes to the use of data science and AI in the professional sports industry, everyone is keeping track. The sports technology industry reached over $16 billion in 2022 globally, and analysts predict an annual growth rate (CAGR) of 19.6% by 2030. Driving the growth are obvious tech giants like Microsoft, IBM (IBM), and Intel (INTC), which all provide AI-powered analytic tools in the sports industry.

Other tech entities are seeing increased market value, like Zebra Technologies (ZBRA), manufacturers of real-time tracking technology using RFID sensors and GPS systems, which are used by several NFL teams to monitor player movements and statistics. The company has seen steady growth and is considered a strong buy by market analysts.

The Atlanta Braves (BATRK) have made headlines recently for more than just their 2021 World Series win. The organization, currently the only MLB team that is publicly traded on the stock market, has implemented AI technology for players as well as for fans, most recently announcing a virtual replica of the team’s park to enhance fan experience from their home. The Braves underwent a reclassification of tracking stocks following a split-off from parent company Liberty Media Corporation in March.

Stocks in this area are worth watching as it’s still early days, from companies providing AI and data technologies to the teams that use them. A growing number of tech providers and teams are already public (such as giants Microsoft and Intel) or will be public soon, so watch this space.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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