AI set to reshape global economy, could rival industrial revolution: Jonathan Wilmot

Jonathan Wilmot, Global Strategist at Aletheia Capital

Artificial intelligence is poised to transform the global economy in a way comparable to past industrial revolutions, even as geopolitical tensions and energy risks continue to shape the near-term outlook for markets and policymakers.

Speaking at the Moneycontrol Global Wealth Summit, Jonathan Wilmot, Global Strategist at Aletheia Capital, said the rapid advances in artificial intelligence mark a turning point for global growth and productivity.

“When I started my firm, I was convinced that AI and machine learning had reached a point of takeoff and would eventually become the leading factor transforming the whole of the world economy,” Wilmot said.

AI as a force multiplier

Wilmot described artificial intelligence as a powerful accelerator for innovation and scientific discovery.

“In a very simplistic way, AI is to human brain power what the steam engine was to horsepower,” he said, adding that the technology could act as a “force accelerator for human intellect” by speeding up innovation, research and product development.

Lower costs over time

According to Wilmot, AI-led innovation could eventually reduce the cost of essential goods and services.

“I’m convinced that the effect will be profound in lowering the costs of food, energy, housing and healthcare,” he said, noting that the impact will come not only from AI itself but also from its interaction with technologies such as solar energy, smarter farming and advanced manufacturing.

However, he added that the transition may initially push prices higher due to heavy investment in AI infrastructure before longer-term cost benefits emerge.

Central banks face difficult choices

Wilmot said the rise of AI, combined with geopolitical tensions, has created one of the most challenging environments for central banks.

“This is one of the most difficult periods for central banks around the world,” he said.

He noted that policymakers may be divided between those focusing on long-term productivity gains and those worried about short-term inflation pressures. “If you emphasize the longer-term productivity benefits… you would say there’s no need to raise interest rates in the face of a short-term shock,” he said.

AI stocks not a dot-com repeat

On the debate around AI valuations, Wilmot argued that the current investment boom is different from the dot-com bubble.

“What it clearly is not is the same as the dot-com situation in the 1990s,” he said, pointing out that leading AI companies are backed by strong earnings growth.

At the same time, he warned that global shocks could still lead to sharp declines in technology stocks. “If we have a shock to the world economy… you’re going to see very large declines in the valuation of this stuff,” he said.

Oil shock risk remains

Discussing the ongoing Middle East tensions, Wilmot said oil markets remain highly sensitive to disruptions in the Strait of Hormuz.

“Unless we can reopen the Strait of Hormuz within three or four weeks, we’ll be in a situation where oil prices could head towards $150 or even higher,” he said.

India's growing global role

On India’s long-term outlook, Wilmot highlighted the country’s demographic and economic potential.

“India is going to be the largest country in the world in terms of population,” he said, adding that the country could become more important as a manufacturing hub and a participant in the AI-driven economy.

“I think India will become more and more important, both economically as an alternative manufacturing destination and because you will actually do well from the AI trade,” he said.

Advice for investors

Concluding his remarks, Wilmot urged investors to adopt AI while keeping macroeconomic risks in mind.

“Go hire a lot of AI agents to help you with the business, but don’t fire anybody as a result,” he said.

He also emphasized the importance of macro awareness. “Never forget macro… because if the world has a macro seizure, that will dominate everything else.”