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Artificial Intelligence

AI disruption deepens and opportunities broaden

05 Jan 2026
PostAuthors object (17506)
Xuesong ZhaoPartnerArtificial Intelligence Team
PostAuthors object (17507)
Nick Dumas-WilliamsInvestment AnalystArtificial Intelligence Team

We believe artificial intelligence (AI) is the next general-purpose technology and is introducing transformational opportunity and disruption to all industries. Enterprise adoption of AI is rapidly increasing and we expect this to be a key determinant of competitive positioning and corporate success.

2025 saw a rapid expansion in the capabilities of AI and tangible growth and profit contributions for a number of companies. We expect 2026 to bring an acceleration in these dynamics and widening dispersion between the winners and losers, in part driven by the deployment of agentic AI and next-generation automation capabilities to businesses.

Disruptive AI progress also introduced threats to the terminal value of certain products, stocks and sectors. We expect this dynamic to encompass more companies and industries in 2026 and to be a key component of investment decision-making through the year.

Enterprise adoption of AI is rapidly increasing and we expect this to be a key determinant of competitive positioning and corporate success.

Rapid technological change plays to our strengths and experience. Our blueprint for investing in technology-enabled change and our constant appraisal of the changes AI may trigger in each sector will be critical in avoiding AI losers and capturing the beneficiaries.

While we expect our bullish outlook to be periodically tested by bouts of volatility, we remain AI maximalists. The transformational potential of AI is only increasing and the impact of AI will be impossible for investors to ignore.

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All opinions and estimates in this document constitute the best judgement of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.  Polar Capital is not rendering legal or accounting advice through this material; viewers should contact their legal and accounting professionals for such information. This document does not constitute a prospectus, offer, invitation or solicitation to buy or sell securities and is not intended to provide the sole basis for any evaluation of the securities or any other instruments, which may be discussed in it. This is not a financial promotion.  Past performance is not indicative of future results.  A list of all recommendations made within the immediately preceding 12 months is available upon request.  This document is not a personal recommendation and you should consider whether you can rely upon any opinion or statement contained in this document without seeking further advice tailored for your own circumstances. This document is only made available to professional clients and eligible counterparties.  Shares in the fund should only be purchased by professional investors.  The law restricts distribution of this presentation in certain jurisdictions; therefore, persons into whose possession this presentation comes should inform themselves about and to observe, all applicable laws and regulations of any relevant jurisdiction. Issued by Polar Capital LLP and Polar Capital (Europe) SAS. Polar Capital LLP is authorised and regulated by the United Kingdom’s Financial Conduct Authority (“FCA”) and the United States’ Securities and Exchange Commission (“SEC”). Registered address: 16 Palace Street, London SW1E 5JD. Polar Capital (Europe) SAS is authorised and regulated by France’s Autorité des marchés financiers (AMF). Registered address: 18 Rue de Londres, Paris 75009, France.

Artificial Intelligence|05 Jan 2026

AI disruption deepens and opportunities broaden

None
None
Xuesong Zhao
Partner, Artificial Intelligence Team
None
Nick Dumas-Williams
Investment Analyst, Artificial Intelligence Team

We believe artificial intelligence (AI) is the next general-purpose technology and is introducing transformational opportunity and disruption to all industries. Enterprise adoption of AI is rapidly increasing and we expect this to be a key determinant of competitive positioning and corporate success.

2025 saw a rapid expansion in the capabilities of AI and tangible growth and profit contributions for a number of companies. We expect 2026 to bring an acceleration in these dynamics and widening dispersion between the winners and losers, in part driven by the deployment of agentic AI and next-generation automation capabilities to businesses.

Disruptive AI progress also introduced threats to the terminal value of certain products, stocks and sectors. We expect this dynamic to encompass more companies and industries in 2026 and to be a key component of investment decision-making through the year.

Enterprise adoption of AI is rapidly increasing and we expect this to be a key determinant of competitive positioning and corporate success.

Rapid technological change plays to our strengths and experience. Our blueprint for investing in technology-enabled change and our constant appraisal of the changes AI may trigger in each sector will be critical in avoiding AI losers and capturing the beneficiaries.

While we expect our bullish outlook to be periodically tested by bouts of volatility, we remain AI maximalists. The transformational potential of AI is only increasing and the impact of AI will be impossible for investors to ignore.

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Artificial Intelligence
  • None

    Xuesong Zhao, CFA

    Xuesong joined Polar Capital in May 2012. He is a lead manager of the Polar Capital Artificial Intelligence Fund and is a Fund Manager on the Polar Capital Technology Trust and Polar Capital Global Technology Fund.

    Prior to joining Polar Capital, he spent four years working as an investment analyst within the emerging markets & Asia team at Aviva Investors, where he was responsible for the technology, media and telecom sectors. Prior to that, he worked as a quantitative analyst and risk manager for the emerging market debt team at Pictet Asset Management. He started his career as a financial engineer at Algorithmics, now owned by IBM, in 2005.

  • None

    Nick Dumas-Williams

    Nick joined Polar Capital in June 2019 as an analyst on the Polar Capital Technology team. Prior to joining Polar Capital, Nick worked at Neptune Investment Management as the Assistant Fund Manager on the US Opportunities growth fund. Prior to that he worked in academia at the University of Oxford.

All opinions and estimates in this document constitute the best judgement of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.  Polar Capital is not rendering legal or accounting advice through this material; viewers should contact their legal and accounting professionals for such information. This document does not constitute a prospectus, offer, invitation or solicitation to buy or sell securities and is not intended to provide the sole basis for any evaluation of the securities or any other instruments, which may be discussed in it. This is not a financial promotion.  Past performance is not indicative of future results.  A list of all recommendations made within the immediately preceding 12 months is available upon request.  This document is not a personal recommendation and you should consider whether you can rely upon any opinion or statement contained in this document without seeking further advice tailored for your own circumstances. This document is only made available to professional clients and eligible counterparties.  Shares in the fund should only be purchased by professional investors.  The law restricts distribution of this presentation in certain jurisdictions; therefore, persons into whose possession this presentation comes should inform themselves about and to observe, all applicable laws and regulations of any relevant jurisdiction. Issued by Polar Capital LLP and Polar Capital (Europe) SAS. Polar Capital LLP is authorised and regulated by the United Kingdom’s Financial Conduct Authority (“FCA”) and the United States’ Securities and Exchange Commission (“SEC”). Registered address: 16 Palace Street, London SW1E 5JD. Polar Capital (Europe) SAS is authorised and regulated by France’s Autorité des marchés financiers (AMF). Registered address: 18 Rue de Londres, Paris 75009, France.

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