Sports, Gen Z, and AI: The Perfect Storm for Innovation

Every industry evolves in waves — some driven by groundbreaking technology, others by deep shifts in human behavior.

Sports is no different.

From AI-powered innovation to Gen Z’s digitally native consumption habits, a new era is unfolding.

The question isn’t if you’ll adapt…but how quickly you can ride the wave.

Let’s break it down ????

Waves of Technology and Behavior

In the startup world, there are two primary forces of change:

  1. technological innovation
  2. behavioral shifts

On the technology front, AI is the clearest wave right now…

It’s revolutionizing production, from tools that make high-quality content creation accessible to platforms that unlock smarter, faster decision-making.

industrial revolution vs ai revolution

The internet unlocked distribution, which allowed people to express themselves more broadly; now, AI arms them with the tools to express themselves more deeply.

Behavioral waves, on the other hand, reflect fundamental changes in how people think, act, and consume.

These shifts are particularly visible in younger generations—especially Gen Z, the first digitally native cohort.

To put things into perspective:

  • Today’s college freshmen were born the same year as AWS.
  • Today’s high school seniors were born the same year as the iPhone.
internet adoption vs mobile adoption vs ai adoption

When technology and behavior intersect, the biggest opportunities emerge.

Let’s break down how these forces are reshaping sports.

Technology + Behavior = Sports Opportunity

The most successful companies combine technological innovation with a deep understanding of human behavior.

And with Gen Z now making up 30% of the globe’s population — industries are being redefined.

Here’s what we’ve seen in sports:

  • Overtime ($500m valuation): Harnessed the rise of mobile video platforms (tech) and Gen Z’s craving for behind-the-scenes content (behavior) to build a media empire.
  • Fanatics ($31B valuation): Mastered e-commerce (tech) while tapping into Gen Z’s obsession with personal branding through custom jerseys and merchandise (behavior).
  • Sorare ($4B valuation): Leveraged blockchain (tech) and the growing demand for digital collectibles (behavior) to create a global fantasy sports marketplace.
technology and behavior shifts leading to large companies in sports graph

This equation— technology shift + behavior shift = opportunity —is now defining the future of sports.

There are three phenomena taking place:

  1. Everything Is Social
  2. Player-First Fandoms
  3. New Wave in Sports Health

1. Everything is Social

Gen Z consumes sports differently.

My generation revolved around SportsCenter. (You know…watching the Top 10 plays before the bus arrives).

Today, kids don’t even know what SportsCenter is.

Why would they?

They can see the highlights they care about in between all the other things they are interested in — curated directly by:

  • YouTube for deep dives.
  • TikTok for bite-sized highlights.
  • Instagram and Twitter for player updates.
  • Twitch & Podcasts to hear from the players.
genz cartoon watching bite sized sports highlights

A recent study found that teens spend nearly 9 hours per day on their devices.

That means GenZ is building fandoms on their terms — influenced by social platforms, not geography or tradition.

Adding on to this…

A Google survey found that passing time, content bonding, and lifestyle aspiration account for the most time teens spend on the internet.

 

google survey of genz users on why they use the internet
Google’s Jigsaw survey of Gen Z internet usage
Attention is scarce, and most technology companies are competing for that scarce resource.
This reminds me of the infamous quote from Netflix’s CEO: “At the end of the day, we’re competing with sleep.”

2. The Rise of Player-First Fandoms

Growing up in Pittsburgh, I didn’t have an NBA team to follow. But that doesn’t matter.

I love watching Russell Westbrook, regardless of who he’s playing for. Many younger fans feel the same way.

GenZ follows the athletes they admire, not the franchises.

pittsburgh nba team

Social media has amplified this trend.

Players like LeBron James and Cristiano Ronaldo built massive global fanbases independent of their teams, leveraging platforms to connect directly with fans.

This player empowerment era is also why athlete podcasts have exploded in popularity.

3. The New Wave in Sports Health

We see an outsized emphasis on health and wellness among younger consumers.

This goes beyond aesthetics — it’s about optimizing performance and longevity.

millennial and genz consumers spending on health and wellness bar graph
  • From wearables like Whoop and Oura Rings to personalized nutrition and glucose monitors, young consumers are investing heavily in their well-being.
  • We’ve seen the rise of connected fitness platforms like Peloton, Tonal, and Mirror, blending technology with behavioral shifts toward self-care.

Sports and fitness brands are uniquely positioned to cater to this trend.

These trends aren’t just reshaping fitness — they’re redefining what it means to “live healthy.”

Closing Thoughts

The sports industry is at an inflection point.

AI, social media, and Gen Z’s digital habits are rewriting the rules.

The opportunities are massive, but so are the stakes.

The question is: will you ride this wave — or be left behind?

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