In this article, we discuss the 10 AI news that you should not miss.
Generative AI Set to Capture 10% of Total IT Market by 2032
Bloomberg Intelligence projects that the generative AI market will grow at a compound annual growth rate (CAGR) of 42%, reaching $1.3 trillion by 2032, up from $40 billion in 2022. This growth is driven by demand for generative AI products, especially infrastructure for training large language models, digital ads, and specialized software. The market could generate an additional $280 billion in software revenue, with major companies like Amazon, Microsoft, Google, and Nvidia expected to benefit as enterprises increasingly move workloads to the cloud.
By 2032, generative AI is predicted to account for 10% of total IT spending, with significant revenue coming from infrastructure services, AI servers, and software. The technology is also expected to have a transformative impact on life sciences and education. However, the rapid growth of generative AI could disrupt several industries, including semiconductors, hardware, IT services, and advertising.
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Navigating the Evolving Landscape of Generative AI
In a blog post, Carrie Tharp, Vice President, of Strategic Industries, wrote that Generative AI has evolved from a futuristic concept into a vital business strategy, transforming industries by enhancing efficiency and customer engagement. Despite its growth, many organizations are still testing its applications, with a study revealing that a third of businesses are evaluating its use. Key trends include the rise of multimodal AI, AI agents, AI-powered search, customer experiences, and deepfake defense.
In retail, AI is being used for customer service, marketing, and digital commerce, with long-term goals of creating personalized experiences and AI-powered assistants. The financial services industry is leveraging AI for fraud detection, risk management, and efficiency, while healthcare uses AI to reduce administrative burdens and improve patient care. The media and entertainment industry is increasingly adopting AI to improve productivity, content personalization, and operational efficiency.
As AI becomes more sophisticated, businesses need to address challenges like deepfake defense while focusing on high-value use cases. Generative AI is no longer a novelty but a transformative tool, with businesses needing to prioritize AI strategies that align with their specific industry needs and long-term goals.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 AI News That You Should Not Miss
10. Pony AI Inc. (NASDAQ:PONY)
Number of Hedge Fund Holders: N/A
Pony AI Inc. (NASDAQ:PONY) specializes in autonomous mobility, offering AI-driven robotruck and robotaxi services, intelligent driving software, and vehicle integration solutions in China and the U.S.
Pony.ai (NASDAQ:PONY) has been granted approval for cross-regional autonomous driving operations in China’s Greater Bay Area, under a new framework that allows companies with pilot qualifications to expand across recognized regions. Its vehicles will now operate seamlessly across key transit hubs, including airports and high-speed rail stations. As the first company in China to secure unmanned driving service licenses in cities like Beijing, Shanghai, Guangzhou, and Shenzhen, Pony.ai has established nearly 3,000 service points. Additionally, its autonomous trucks will handle cross-city freight, marking a significant step in integrating AI-driven solutions into both passenger and commercial transport.
9. Mercurity Fintech Holding Inc. (NASDAQ:MFH)
Number of Hedge Fund Holders: N/A
Mercurity Fintech Holding Inc. (NASDAQ:MFH) is a financial technology firm that provides business consulting, cryptocurrency mining, and cloud storage solutions. The company’s newest joint venture in Hong Kong is set to concentrate on artificial intelligence hardware.
Mercurity (NASDAQ:MFH) closed a private investment in public equity financing on December 23, 2024, raising approximately $10 million by selling 1,470,000 shares at $6.81 per share. The funds will support the company’s strategic initiatives, especially in AI hardware manufacturing and advanced liquid cooling technologies, aimed at strengthening AI-driven infrastructure. This move aligns with MFH’s broader vision to innovate within fintech and technology services. CEO Shi Qiu expressed confidence that this investment would bolster operations and help the company meet the growing demands of AI-powered industries.
