Data Science Competition: What it is & How it works 2023

Data science competitions are becoming an increasingly popular way for companies to access innovative solutions to their toughest data challenges while enabling data scientists to gain real-world experience. In this comprehensive guide, we‘ll explore what data science competitions are, their benefits, how they work, and tips for getting the most out of competing or hosting a competition.

What is a Data Science Competition?

A data science competition brings together data scientists to solve real-world problems proposed by companies or organizations. The host defines a problem, provides training data, and competitors build models to make predictions on a test set. Submissions are scored based on performance metrics, and winners earn prizes and recognition.

Popular competition platforms like Kaggle and DrivenData allow businesses to tap into a global community of data talent. For data scientists, competitions offer opportunities to test skills, gain experience, build portfolios, and earn rewards.

The Anatomy of a Competition

Data science competitions have a standard structure:

  • Problem definition – The host company articulates the business problem, provides background, and specifies objectives.
  • Training data – Competitors are given labeled historical data to train their models.
  • Test data – Unlabeled data that submissions are scored on to determine performance.
  • Submission scoring – Submissions are ranked based on target metrics defined by the host.
  • Prizes and rewards – Top performers earn recognition, cash prizes, gifts, trips and more.

Growth of Data Science Competitions

Data science competitions have seen rapid growth in recent years:

  • Kaggle reports over 5 million data scientists on their platform, doubling since 2019.
  • The number of annual competitions on Kaggle grew from 200 in 2017 to over 1,400 in 2024.
  • Total prize money awarded on Kaggle exceeded $1 million for the first time in 2024.
  • DrivenData has awarded over $3 million in prizes for social good competitions.

This growth reflects the rising popularity of crowdsourced data science among both host companies and competing data scientists.

The Benefits of Data Science Competitions

For Companies Hosting Competitions

  • Cost-effective innovation. Crowdsourcing solutions costs less than hiring data scientists. Competitions give access to hundreds of approaches. Kaggle estimates the cost of a competition at $10,000-$30,000, far less than hiring a team of data scientists.

  • High-performance solutions. Companies can select the best model among many submissions. This level of innovation is hard to achieve otherwise. Competitions see a 2-3x performance gain over companies‘ existing solutions on average.

  • Employer branding and recruitment. Competitions increase company visibility and allow scouting of talent. Surveys show 76% of competitors are more likely to apply to a company after competing.

  • Market research. Understand different techniques to solve the problem and gain ideas for internal teams. The diversity of approaches is often the most valuable part of competitions.

For Data Scientists Competing

  • Real-world experience. An opportunity to work on actual business challenges and with new types of data. Data scientists cite real-world practice as the top benefit of competitions.

  • Learning and skill development. Competitions motivate continuous improvement to rank highly. 87% of competitors say competitions have accelerated their skills.

  • Portfolio and exposure. Top performers stand out, leading to job and networking opportunities. $200k+ salaries and high-profile jobs often go to top performers.

  • Prizes and rewards. Chance to earn money, swag, trips, and other prizes. These provide motivation, though learnings tend to be more valuable long-term.

What Makes a Good Data Science Competition Problem?

Not all problems are well-suited for crowdsourced competitions. Ideal competition problems have these key characteristics:

  • Difficult yet soluble. Simple problems won‘t attract competitors. Impossible problems lead to frustration. The right balance drives participation. Historical benchmarks help set the bar.

  • Objective scoring. Submissions must be measurable and comparable to identify the best solutions. Quantifiable metrics like RMSE, F1, AUC, etc. enable standardized evaluation.

  • Enough data. Sufficient labeled training data is needed for participants to effectively train models. Competition hosts should strive for >5k labeled examples if possible.

  • Real-world relevance. Choose problems aligned to business goals with meaningful impact if solved. Practical problems draw competitors interested in gaining applicable skills.

Examples of Impactful Competitions

  • Planet Amazon Deforestation – Satellite image analysis to predict rainforest loss patterns in the Amazon. Hosted by Planet Labs and DrivenData.

  • Facebook Hateful Memes Challenge – Identify hate speech in multimodal meme images and text. Part of Facebook‘s ethics in AI efforts.

  • KDD Cup Drug Side Effect Prediction – Predict drug side effects based on chemical properties. Hosted annually at the KDD data mining conference.

Challenges in Running a Competition

While competitions offer many benefits, there are also challenges for companies hosting them:

  • Problem formulation – Clearly defining objectives, success metrics, and business impact. Subject matter experts are key to shaping effective problem statements.

  • Attracting competitors – Promoting the competition and incentives to motivate entries. Partnerships with platforms and targeted outreach to top data scientists help drive participation.

  • Data sufficiency and security – Providing enough training data while protecting sensitive information. Secure cloud platforms enable controlled data access.

  • Interpreting results – Understanding how different techniques can be applied internally beyond just selecting a "winner". Engaging with top performers helps transfer knowledge.

Mitigating Potential Issues

  • Overfitting solutions – Requiring holdout test data and reviewing code helps safeguard against this.

  • Poor data quality – Cleaning and carefully reviewing data minimizes bad data impact.

  • Speculative approaches – Focus competitions on business impact to discourage "games" for leaderboards.

How to Launch a Competition

Here are the key steps companies take to launch a successful competition:

  1. Define the problem – Write a clear problem statement and evaluation criteria. Quantify performance metrics. Involve subject matter experts and data scientists.

  2. Prepare data – Assemble, clean, label and split training/test sets. Remove confidential data. Plan secure data access protocols.

  3. Choose platform – Select competition host (Kaggle, DrivenData, etc.) based on problem domain, tools, and competitor community.

  4. Set prizes – Determine prize budget and structure – monetary, trips, gifts, recognition. Motivational prizes attract competitors.

  5. Promote the competition – Market to data scientists through platforms, social media, conferences. Engage influencers to spread awareness.

  6. Run and monitor – Provide support, check submissions, mitigate cheating risks, identify top performers. Maintain integrity of the competition process.

  7. Evaluate and implement – Assess top solutions, work with winners, transfer methods internally. Competitions are the start of the innovation process.

Major Data Science Competition Platforms

Popular platforms like Kaggle and DrivenData make launching and participating in competitions easy. Here are some leading options:

  • Kaggle – Largest platform with over 5 million data scientists. Known for computer vision and NLP competitions. Acquired by Google in 2017.

  • DrivenData – Focuses on social good competitions. Experience with international development and nonprofit domains. Over $3 million awarded.

  • AIcrowd – General platform emphasizing reproducibility. Many academic challenges. Integrates with Github and Docker.

  • CrowdANALYTIX – Specializes in analytics and business-focused competitions. Enterprise data science focus. $5+ million in prizes.

  • InnoCentive – Pioneer in open innovation and crowdsourcing. Over 400,000 solvers. Broad problem domains. Acquired by Wipro in 2024.

Selecting the Right Platform

Consider these factors when choosing a competition platform:

  • Relevant data science community and problem domain expertise
  • Tools, data security, and platform capabilities
  • Competition process support and competitor interactions
  • Marketing reach and channels to promote the competition
  • Prizes, recognition, and incentive offerings
  • End-to-end service and support levels

Tips for Getting the Most from Competitions

For companies hosting competitions, focus on learning rather than just sourcing a solution. Evaluate approaches from top performers and engage with them to transfer knowledge.

For data scientists, competitions are most valuable for skill development. Be curious, dig into notebooks from top competitors, participate actively in forums, and build your portfolio.

Key Takeaways

  • For hosts: Competitions are an innovation catalyst. Engage with participants and adopt methods.

  • For competitors: Focus on knowledge gain over leaderboards. Absorb techniques from peers.

  • For both: Conversations and connections enable impact beyond the competition itself.

Over time, the relationships and insights gained from competitions create network effects for hosts, participants, and the broader data science community.


Data science competitions are a rising trend that offer benefits for both host companies and competing data scientists. They provide cost-effective access to innovation and talent for organizations while giving data scientists real-world experience and networking opportunities.

By focusing competitions on business-relevant problems with clear evaluation criteria, and emphasizing learning over sourcing a solution, competitions can lead to impact that goes far beyond the competition itself. The connections made also live on, benefiting participants, hosts, and the data science community.