Start-ups are developing artificial intelligence to predict future events more accurately than human experts can, covering areas like stock market trends and music chart performance. Companies like FutureSearch and Preseen use AI models that have already matched or surpassed "superforecasters" in prediction competitions. Theo Summer of Preseen turned $35 into $1.9 million using AI on the prediction site Kalshi within seven months. Hedge funds are among the quickest adopters, leveraging these tools for trading decisions. The article suggests that AI forecasting could soon dominate consumer-oriented trading sites and extend its influence to government policy, corporate decision-making, scientific research, and insurance risk assessments.
Written locally by qwen2.5:14b on 2026-10-12,
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Story summary
Several start-ups in NEW YORK are using artificial intelligence (AI) to make predictions across various fields such as stock market trends, geopolitical events like the reopening of the Strait of Hormuz, and music chart performances. Companies like FutureSearch and Kalshi are developing AI models that can forecast outcomes more accurately than even specialized human experts. By 2030, co-founder Dan Schwarz predicts people will view traditional decision-making as outdated. In a recent competition called the Metaculus Cup, two AI models from these start-ups secured top positions, demonstrating their capability to rival superforecasters—individuals known for making highly accurate predictions. FutureSearch's own human expert, Tom Liptay, acknowledges that his job security might be threatened by advancing AI technologies in the medium term.
Written for “AI Predictive Technologies” on 2026-10-12,
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Start-ups are betting on AI to predict the future
AI generated
NEW YORK – Several start-ups are betting that they can leverage artificial intelligence (AI) to make better forecasts than even the most specialised experts when it comes to topics as varied as stock market movements, the reopening of the Strait of Hormuz, or how a Shakira song will perform on music charts.
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song → bet → charts
By 2030, “we’re going to feel that what we were doing for our decision-making was complete Stone Age thinking”, Dan Schwarz, co-founder of the forecasting company FutureSearch, said.
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Schwarz → go → company
AI forecasting models are already on a par with the best “superforecasters” – gifted individuals whose estimates are markedly superior to those of ordinary people – thanks to troves of data acquired from both public and private sources.
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estimates → acquire → sources
In early September, two AI models made history when they took the top spots in the Metaculus Cup, a competition among prediction champions, both human and non-human.
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they → make → champions
FutureSearch’s in-house human wizard, superforecaster Tom Liptay, is aware that “he’s not secure in his job” in the medium term, Schwarz said.
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Schwarz → ’ → term
“He knows that these things are going to surpass him.”
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things → know → him
Theo Summer, who co-founded Preseen with Veniamin Veselovsky, used AI tools to turn US$35 (S$44.80) into US$1.9 million in just seven months on the American prediction-making site Kalshi.
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who → co → site
The idea is not to guarantee a result but to define a probability of occurrence, with the ability to cross-check assumptions related to several interconnected events – for example, changes in the price of oil and the war in the Middle East.
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idea → guarantee → East
“Right now, the quickest buyers are normally the hedge funds, just because if they think they can make money off something, they can move pretty fast,” Veselovsky said.
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Veselovsky → think → something
Algorithms have shaped Wall Street for more than a decade, but the rise of AI forecasting is likely to further increase the automation of financial markets.
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rise → shape → markets
“I think it’s probably already having a small impact because we already have customers who use it when making trading decisions,” said Toby Shevlane, the co-founder of another forecasting start-up called Mantic.
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Shevlane → think → up
Now-famous prediction markets Kalshi and Polymarket, which are used by millions of Americans, are also becoming inundated by AI use.
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which → use → use
It might soon be too late for retail investors, who do not have access to expensive AI tools, to profit on those types of consumer-oriented trading sites because “they will soon just be dominated by AI forecasting systems,” Veselovsky said.
uncertain
Veselovsky → have → systems
The most advanced models no longer just predict events, either.
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models → predict → events
They can also formulate their own questions about the future and then assign probabilities based on the different possible outcomes, Shevlane said.
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Shevlane → formulate → outcomes
Their sphere of influence is beginning to extend beyond finance, as well, with potential applications in government policy, corporate decision-making, scientific research, and insurance risk assessments.
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sphere → begin → policy
Mantic provides a large American company with likely scenarios of regulatory developments in its sector and has also worked for the British government.
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Mantic → provide → government
Companies “are interested in risks and how to monitor them”, Shevlane said.
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Shevlane → monitor → them
Meanwhile, other customers might be more interested in medical research, particularly to help make decisions around which types of treatments would be best to fund, Schwarz said.
uncertain
Schwarz → make → treatments
Widespread access to these types of tools can come with costs, though.
“I think that good can be derived from this,” Veselovsky said, but “I’m also a little bit scared because, you know, maybe Russia or China has better systems.” AFP
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Russia → come → systems
The Aporia
