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The Impact of AI on Managing Exchange Rate Risks in Mobile Gaming: A Study on Consumer Behaviour, Mobile Billing & Marketing Apps

The mobile gaming industry has expanded rapidly in recent years, serving millions of customers in many countries. Incidentally, exchange rate risk management has become increasingly important as mobile gaming companies face potential currency risk.

Nonetheless, AI has recently emerged as a potent instrument for managing exchange rate risks in the business world. With an eye towards user/consumer behaviour, mobile billing, and marketing apps, this paper explores how artificial intelligence is changing the face of foreign exchange risk management in mobile gaming.

Consumer Behaviour

Exchange rate risk management in mobile gaming is heavily reliant on consumer behaviour. Mobile gaming companies must understand consumers’ habits to mitigate foreign exchange risk. Businesses can benefit from AI by having it examine data on consumer behaviour for patterns and trends that can be used to reduce currency risk. AI systems can complement other tools that consumers, traders and others are already effectively using to look out for currency fluctuations, such as the DXY chart. It allows for monitoring and keeping abreast of exchange rates and changes. The DXY chart contains information on six currencies and how they measure in value compared to US dollars.

Companies can determine the most popular currencies used for in-app purchases by examining data on the buying habits of mobile gamers from different nations. A gaming company can target customers in a country with a strong currency relative to its own by offering discounts in that currency. This encourages users from that country to make purchases. Hence, the business is protected from fluctuations in the currency markets as customers are more likely to pay in their currency.

AI can also aid businesses in determining which games are the most well-liked in various regions so that they can tailor their product roadmaps and advertising campaigns accordingly. Companies can produce localised versions of games that are more likely to appeal to consumers in different regions. They do this by evaluating data on user involvement with games to determine which games are most popular in those nations. Since customers are more likely to spend money on games that are relevant to them, this strategy helps the company mitigate currency risk.

Mobile Billing Optimisation

Managing foreign exchange risks in mobile gaming can also be greatly aided by AI-enhanced mobile billing optimisation. Companies are vulnerable to fluctuations in the exchange rate because of the complexity of currency conversion operations inherent in mobile billing. However, gaming industries can learn which payment methods consumers prefer and adjust billing procedures to mitigate exchange rate risks. Machine learning algorithms can be used to analyse data on mobile billing transactions.

To determine the most popular payment methods in various regions, gaming industries can utilise AI to evaluate data on user payment preferences. Users are more likely to use payment options that are known to them; therefore, the company can offer them to reduce exchange rate risks. Also, with the help of AI, these companies can improve their currency conversion processes and thus mitigate risks associated with fluctuating exchange rates. Also, businesses can reduce the risk associated with currency exchange rate swings by adjusting their conversion operations based on historical data.

Marketing Apps

Mobile game developers rely heavily on marketing applications to spread the word and bring players worldwide. However, since many advertising campaigns also require dealing with currency conversions, using marketing apps can put businesses at risk. By examining data on the success of marketing efforts in different nations, AI can assist businesses in developing superior marketing apps. Companies can lower their exposure to currency fluctuations by examining data on user interaction with marketing efforts.

For instance, AI can help determine what adjustments should be made to a marketing campaign to yield a greater return on investment in a specific country. Also, AI can assist gaming industries in improving the efficiency of their marketing by targeting specific groups of customers. These industries can better reach their intended audiences with strategic marketing initiatives. Users are more likely to interact with targeted marketing initiatives, reducing the company’s exposure to exchange rate risk.

Foreign exchange risk represents a threat to the profitability of the mobile gaming business. Thankfully AI has recently proven to become an effective tool for hedging currency risks. Companies can save money by evaluating consumer behaviour data, improving mobile billing procedures, and enhancing marketing applications using AI.

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