Blackstone COO flags tech disruption, geopolitical conflicts as global risks; says India's investment climate improving

In a recent panel discussion at Bloomberg New Economy 2026, Blackstone COO Jonathan Gray warned that technology disruption, geopolitical conflicts, and government debt are emerging as major risks to the global economy. He emphasized that artificial intelligence and superintelligence are set to transform various sectors, drawing parallels with the Industrial Revolution in the United States two centuries ago.

Speaking about India, Gray noted that improvements in infrastructure and dispute resolution, along with the government's openness to foreign investment, have been instrumental in its growth. He highlighted that sectors previously inaccessible to foreign investors have now opened up.

Addressing the challenges faced by governments with high fiscal constraints, Gray suggested that easing foreign capital access through simpler rules, greater clarity, and reasonable tax policies could help stimulate growth. He pointed to Japan and the Gulf region as examples of countries making similar strides.

Blackstone will increasingly focus on areas such as electricity, digital infrastructure, defense, and life sciences as AI adoption expands into physical applications. Gray also highlighted the rising power demand driven by AI adoption.

Tata Sons Chairman Natarajan Chandrasekaran echoed Gray's sentiments, warning that technology's immediate effects, including potential misuse and labor market restructuring, would pose significant concerns. However, he remained optimistic about technology's long-term benefits for human health. He underscored the risks posed by ongoing wars and the threat of unsustainable fiscal policies in Western governments, as rising debt can strain their ability to respond to future shocks.

Former UK Prime Minister Rishi Sunak echoed these concerns, highlighting the growing geopolitical uncertainty and competition between the United States and China across economic, military, and technological fields. He stressed that economic security is now inextricably linked to national security and technological strength, warning of a "cocktail of risks" that the world must navigate.