In this article, we discuss the future of artificial intelligence, including 10 predictions about 10 industries.
Artificial intelligence continues to hold center stage at the stock market as investors pour billions into companies that are leveraging the latest technology to solve problems and boost productivity across the business world. A recent report on AI spending by investment bank Citi forecasts that AI-related infrastructure spending by tech giants will surpass $2.8 trillion through 2029, up from the earlier estimated $2.3 trillion, amid aggressive early investments by hyperscalers and a growing enterprise appetite. This spending continues despite a brief crisis of confidence sparked by the debut of the cheaper DeepSeek AI model by China and lingering market concerns over the tariff policies of US President Donald Trump, per a report by Reuters.
Mike Dolan, a senior finance journalist for news agency Reuters, recently underlined that the so-called Magnificent Seven – US tech companies that now make up a record 36% of the S&P 500’s market value – had seen their stock prices more than double over the past two years, after rebounding a whopping 60% from the troughs of this year. Dolan opined that artificial intelligence is obviously the megatrend of the moment, where scale is everything, and US tech giants are driving the spending, while investors are scrambling to get on board an already overcrowded train. He warned that if AI were a bubble, as some experts have put it, the economy might pop when the bubble bursts.
These bullish and bearish views on AI have dominated the headlines in financial newspapers for close to three years. In a world where information is power, perhaps it would be helpful for investors to weigh real-world AI data against the opinions of prominent billionaires and successful CEOs who have a track record of being ahead of the curve in these matters.
Our Methodology
These trends and predictions were picked from a careful assessment of the artificial intelligence (AI) sector from various credible online resources. The details of each AI prediction are mentioned alongside a discussion around one of the top firms in the industry to provide readers with some context for their investment decisions. We have ranked these companies based on the number of hedge funds having stakes in these companies as of Q2 2025, as per Insider Monkey’s database.
These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
The Future of Artificial Intelligence: 10 Predictions for 10 Industries
10. Coursera Inc. (NYSE:COUR) – Education Industry
Number of Hedge Fund Holders: 30
In late August this year, Bill Ackman, the billionaire chief of Pershing Square, took to social networking platform X to announce that a new private school would be opening in New York City in September. Ackman called the new school, Alpha, the first truly breakthrough innovation in K-12 education that he had seen since the Kipp Academy. Ackman highlighted that 200 years ago, K-12 education was a teacher and a blackboard in front of 25-30 kids. Today, per Ackman, the only thing that had changed was that the blackboard may be a whiteboard. Meanwhile, the world was in the midst of an AI revolution, he noted.
Ackman backed the AI embrace by Alpha, where a typical school day consisted of two hours of dedicated AI personal tutoring customized for a child’s academic program, four hours of leadership and life skills, and no homework. However, parents had access to daily real time data on how the child was doing.
In light of this AI-led disruption, investors might consider paying more attention to Coursera Inc. (NYSE:COUR), a firm that operates an online educational content platform that connects learners, educators, organizations, and institutions. On October 7, the company announced integration with ChatGPT. Per the firm, this partnership marked the first time an online learning platform had been directly embedded in ChatGPT — making educational content more accessible to hundreds of millions of learners worldwide. Every week, more than 800 million people use ChatGPT, with one of the most common use cases being learning.
Hedge Fund Resource Center