The move reunites Davies (pictured right) with Paddy Power’s chief marketing officer Gav Thompson, who was formerly global director of business innovation at Telefonica. Thompson joined Paddy Power in April.
She was previously heading up O2’s customer innovation team, before becoming head of new business innovation for Telefonica. She was with O2 for four years.
Davies will report into Thompson, working alongside Paddy Power’s innovation team to examine customer behaviour and come up with new commercial opportunities.
She said: "I am extremely excited by the innovation opportunity at Paddy Power. It is a brave & distinctive brand, loved by punters, and is ideally poised to lead innovation within the gambling industry."
Thompson commented: "Sarah has one of the brightest innovation brains out there.
"By looking at new ideas from the customers' perspective, we are confident that Sarah will help the team unlock some different and exciting opportunities for us".
Davies joined Paddy Power in September.