The AI adoption case is gaining momentum across an array of industries. A trend that largely started in the financial services and healthcare sectors is spreading rapidly to other realms. That’s a good thing for AI-heavy ETFs such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). But as investors are prone to do, they’re asking “What’s next?” on the AI adoption front. They don’t have to look for or venture into exotic realms. That’s because the massive global sports industry is ripe for increased AI penetration.
As Morgan Stanley noted, the global sports industry notched sales of $521 billion. And that rate is growing by 8% per year. Impressively, that growth is being attained with an embrace of AI and broader technology that pales in comparison to other industries. That implies there’s runway for leagues, teams, and others to lean more into the goods and services offered by QQQ/QQQM member firms.
Good Reasons for Sports to ‘Play’ With AI
Data confirms there are compelling financial reasons for entities throughout the sports ecosystem to up their usage of AI and other technologies.
“According to the study, the industry could increase its annual sales by 25%, or $130 billion, by accelerating the adoption of technology, including [AI.] Technology should add or boost revenue streams for sports franchises and their related businesses with several [sectors. These include] media, live events, video games, gambling and internet,” according to Morgan Stanley.
