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.
Increased digitization in the sports realm is an easy selling point for gaming companies, leagues, networks, and teams. That’s because data confirms coveted younger demographics like tech-driven experiences. The Morgan Stanley study noted that “in the U.S. in the first quarter of 2025 showed that fans under 35 are the largest group likely to spend more money on sports if the experience is digital-first.“
Speaking of selling points, live events and sales at arenas and stadiums are the lifeblood of sports franchises. That’s a good reason for team owners and arena operators to invest more heavily in AI and tech. That’s because those expenditures are likely to pay dividends.
“Technology could help sports boost their main sources of revenue. Events sales, which account for nearly half of the industry’s total revenue, could rise 21%,” observed Morgan Stanley. “For example, AI would help boost attendance and sales by adjusting ticket prices to weather conditions, league standings and popularity of teams and players. Some smart venues are using facial recognition for faster entry and purchases.”
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