Mota El Bawab is the CIO of N3XT Sports and Co-Founder of Friday AI and TowardsChange. He writes about the intersection of tech and business
After the Covid-19 pandemic, sports teams, leagues and federations poured billions of dollars into technologies to help accelerate growth and innovation and generate business opportunities.
While data is the fuel delivering new digital experiences for fans, technology integration is only as strong as the strategy an organization adopts—and this is an area where many organizations are still cruising in second gear.
As CIO of digital transformation agency N3XT Sports and a partner in several technology businesses, I have had a front-row seat to how digitalization is reshaping organizations up and down the sporting pyramid.
During the past year, I’ve seen a shift in how organizations approach technology investments—turning their digital products from a mishmash of the latest industry “must-haves” into a well-oiled operational necessity designed for customizing fan experiences, increasing customer value and maximizing their in-house productivity.
How Digital Transformation Impacts The Sports Industry
2025 will be a seminal year for sport’s digital transformation, with many organizations focused on integrating technologies such as artificial intelligence (AI) for better understanding the fan. However, digital transformation is not just about new technologies—it’s also about how organizations integrate these tools into their operations, optimize workflows and drive commercial success.
Research shows that organizations with higher digital and data maturity levels experience stronger commercial growth. By diversifying their digital-product portfolio, sports organizations can introduce new audiences into their fan funnel and create unique monetizable touchpoints.
This is particularly evident in the increasing integration of direct-to-consumer (D2C) products connected via centralized data solutions. However, a disparity between their data-collection and data-management capabilities is a common issue among organizations rich in tech but poor in commercial results.
For instance, my company’s research shows that many sports organizations don’t collect first-party fan data via web login, and very few deploy a single sign-on (SSO) across every data touchpoint.
What’s In: Key Priorities For Digital Transformation In 2025
CIOs and technology leaders in the sports industry should focus on AI readiness, advanced data governance and workforce upskilling in 2025 rather than chasing moonshot AI projects without clear business cases. Those that succeed will move beyond hype-driven AI adoption and focus on strategic implementation, robust data governance and personalization.
By prioritizing leadership development, security and adaptability, businesses can better maintain a competitive edge in a rapidly evolving digital landscape. The future belongs to those who integrate AI and technology with purpose and take clear strategic steps to create long-term success.
Let’s look at how forward-thinking leaders are doing it:
1. AI-Enabled Leadership And Strategic Digital Thinking
The role of leadership in digital transformation has evolved significantly. No longer confined to CIOs and IT teams, digital strategy must be a core competency across executive leadership. Organizations must:
• Equip senior leaders with AI literacy and digital fluency.
• Foster a culture that embraces technological change.
• Implement structured change-management programs to help organizations transition.
Based on my experience, the vast majority of teams playing in the most commercially driven leagues in the world hire a dedicated technology lead, as well as one or more data scientists for business. However, far fewer have hired “innovation” leads. Even fewer integrate an “AI specialist” into their front office.
However, many organizations are still in their infancy when it comes to AI understanding and deployment, despite the industry investing $7.6 billion in AI and machine-learning technology in 2025.
2. Strengthening Data Governance And AI Ethics
Data is the foundation of AI-driven transformation. Without proper governance, organizations risk data breaches, regulatory fines and biased decision-making. For strong data governance, companies must:
• Establish clear frameworks that ensure compliance with evolving regulations.
• Enhance data security protocols to protect sensitive customer and business information.
• Address AI ethics concerns by implementing bias detection mechanisms and transparent AI decision-making models.
High-profile AI missteps in 2024 underscored the need for responsible AI practices. In 2025, businesses that prioritize robust data governance will build trust and mitigate potential risks associated with AI deployment.
AI holds immense potential, but investing in it without a clear business strategy increases the chance of mistakes and can be costly. According to the Boston Consulting Group, organizational change management is among the biggest overlooked costs within an organization’s digital transformation and should account for up to 70% of the overall budget, above technology (20%) and algorithms (10%).
3. Personalizing Customer And Employee Experiences
Consumers and employees alike now expect hyper-personalized experiences. To achieve this:
• Use AI to deliver customized customer engagement, from personalized content recommendations to dynamic pricing models.
• Implement AI-driven HR tools to enhance employee experience, improve retention and support career development.
• Enhance internal collaboration with AI-powered digital workplace tools that streamline communication and decision-making.
According to our research for my company’s recent “Fan Engagement & Commercialization Guide,” there is a massive disparity between which organizations are succeeding in personalizing fan experiences.
For instance, a higher percentage of International Federations (IFs) represented at the Paris 2024 Summer Olympics enable their digital subscriber base to personalize the fan experience (50%) compared to National Governing Bodies (NGB) represented in other major international events, including the men’s FIFA World Cup (34%), Rugby World Cup (35%) and T20 Cricket World Cup (20%).
Businesses that fail to personalize experiences will lose customers and struggle with employee satisfaction, ultimately impacting revenue and productivity.
Conclusion
In 2025, AI and automation will become key tools for increasing the speed in which sports organizations communicate both internally and with their global fan base. The future belongs to those who integrate AI and technology with purpose, governance and a commitment to long-term success.
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