Ruchir Sharma: The new AI-based world order

• Financial institutions are facing rising operational costs as tech companies shift their pricing models for AI services, leading banks to seek ways to reduce "token" expenditures. • While AI was initially expected to drive significant cost savings, the increasing expense of implementing and scaling these tools is causing lenders to balk at current pricing.

• The Bank for International Settlements (BIS) has warned that the current AI investment surge could trigger an economic crash, comparing the trend to historical bubbles like the 1830s canal mania and the 1990s dot-com boom. • Sumeet Chabria, CEO of Thoughtlinks, suggests two primary risks: a financing reversal if AI fails to deliver expected results, or a scenario where AI succeeds too rapidly.

• A bullish tech analyst predicts that major technology companies will maintain or increase their aggressive AI spending plans during the second quarter reporting season. • The analyst expects significant capital expenditure (CapEx) figures as tech giants continue to invest heavily in AI infrastructure and hardware.

• The AI Architecture Design Software Market is projected to reach a valuation of USD 18.6 billion by 2033, growing at a compound annual growth rate (CAGR) of 22.4%. • Growth is being driven by an increased demand for smart urban planning, resilient infrastructure, and defense-related construction modeling.

• The Bank for International Settlements (BIS) warns that rising public debt, financial fragilities, and the sustainability of the AI boom are escalating global economic risks. • Core bond markets have become more vulnerable due to elevated asset valuations and growing investor complacency.

• SNS Telecom & IT reports that the private 5G market is projected to reach $6.6 billion, driven by the integration of "Physical AI" and mission-critical network requirements. • The growth is fueled by a shift from legacy systems, such as the GSM R railway networks, toward the 5G-based Future Railway Mobile Communication System (FRMCS).

• New Project Media (NPM) has launched new intelligence and data coverage focusing on renewable energy and data centers across the Asia-Pacific (APAC) region. • Founder and CEO Ken Meehan stated that this expansion transforms NPM into a global intelligence platform, building upon its existing presence in North America and Europe.

• Recent technological developments across the ASEAN and Asia-Pacific regions highlight a shift toward practical applications and emerging digital economies. • Key highlights include the rise of the low-altitude economy in Malaysia and the deployment of niche mobile data networks designed for family safety.

• ServiceNow and Accenture have launched a joint AI-powered offering designed to migrate enterprises from fragmented legacy cybersecurity and risk platforms to integrated managed services. • The solution utilizes the ServiceNow AI Platform and AI agents to monitor regulatory changes and automate responses, shifting the focus from simple alert generation to proactive risk management.

• Chinese artificial intelligence and semiconductor companies are leading a resurgence in onshore initial public offerings (IPOs). • This trend marks a significant reversal of a listing hiatus that had persisted since the beginning of 2024.

• Major stock markets in China, India, and Hong Kong are experiencing a decline in market capitalization share among their top firms due to a lag in the global AI race. • This trend contrasts sharply with Taiwan and South Korea, where AI-focused leaders have significantly boosted their market benchmarks.