Cathie Wood, founder and CEO of Ark Invest, has stated that the ongoing AI-driven technological revolution will reshape the global economy with an impact and intensity surpassing that of the Industrial Revolution. In her latest investor letter released on Tuesday, Wood noted that as advances in AI and other technologies boost productivity and reduce costs, this transformation will be directly reflected in economic growth and inflation data. She described the current environment as a "back-to-the-future" scenario.
Wood highlighted five major innovation platforms—artificial intelligence, robotics, energy storage, blockchain technology, and multi-omics sequencing—believing these technologies are poised to significantly influence economic growth and inflation. She added, "At the end of the day, our view is: ride the wave of transformation and seize this innovation supercycle."
Falling AI Costs Could Trigger a Deflationary Boom
Wood pointed out that AI inference costs are declining by more than 99% annually, while demand for AI inference tokens surged 25-fold in 2025. She added that these productivity gains could spark a "deflationary boom," enabling the economy to achieve faster growth even as tech companies simultaneously lower the costs of their products and services. Amid a global supply shortage, rising memory chip prices have increased the cost of AI infrastructure construction; as manufacturers work to expand capacity, this supply tightness is expected to persist through 2028.
Wood stated that driven by technology-fueled productivity gains, U.S. real GDP growth could accelerate to 7% or higher over the next five years, compared with roughly 3% since the Industrial Revolution. In the second quarter of this year, U.S. real GDP grew at an annualized rate of 1.5%, down from 2.1% in the first quarter.
Comments