By Ceylon Public Affairs | June 3, 2025
The global economic landscape is shifting at an unprecedented pace, and Ray Dalio, the billionaire founder of Bridgewater Associates, has just made his boldest prediction yet: Artificial Intelligence (AI) will redefine the world in 2025, bringing changes so profound that the next five years will feel like fifty (AI Prediction). In a recent thread on X, Dalio stated, “If you’re not aggressive, you’re not going to make money,” urging a proactive approach to AI investment. As he reshapes his $130 billion empire around three simple rules, middle-income countries like Sri Lanka—already grappling with economic challenges—must take note. Dalio’s insights offer both a warning and an opportunity for nations striving for inclusive growth in a rapidly evolving world.
The AI Revolution: A Global Game-Changer
Ray Dalio, who foresaw the 2008 financial crisis when few others did, has a track record that commands attention. Since founding Bridgewater Associates in 1975 with just $5 million, he has grown it into a $130 billion hedge fund powerhouse. His latest prediction centers on AI’s transformative potential, which he claims is “bigger than the internet.” Dalio describes the coming years as a “time warp,” where AI will compress decades of progress into mere months. He points to AI’s ability to self-improve—unlike previous technologies that relied on human intervention—driving exponential growth in efficiency and productivity.
For middle-income countries like Sri Lanka, this prediction is both exciting and daunting. The International Monetary Fund (IMF) reported in 2025 that AI could impact 40% of global jobs, particularly high-skilled roles, which are often a lifeline for upward mobility in nations like ours. At the same time, AI offers opportunities to leapfrog traditional development hurdles, provided countries act swiftly and strategically.
Sri Lanka’s Economic Context: A Call for Action
Sri Lanka is at a critical juncture. The country has been battling a looming debt crisis, with foreign debt reaching 42.6% of GDP as early as 2019, according to AI Policy Labs. The COVID-19 pandemic further exacerbated these challenges, shrinking the global economy and exposing vulnerabilities in Sri Lanka’s private sector. Foreign loans, which fueled much of the nation’s growth in recent years, have not translated into sustainable job creation or export growth. Against this backdrop, Dalio’s emphasis on AI as a driver of economic efficiency and wealth creation is particularly relevant.
Dalio’s first rule—invest where AI makes the biggest difference—offers a blueprint for Sri Lanka. He advises focusing on companies that integrate AI into their core operations, citing firms like Palantir as examples. For Sri Lanka, this could mean prioritizing sectors like agriculture, tourism, and manufacturing, where AI can optimize processes and boost competitiveness. For instance, AI-driven precision farming could help Sri Lankan farmers increase yields and reduce costs, addressing food security while enhancing export potential. However, this requires a robust National AI Strategy (NAS), something Sri Lanka currently lacks. As noted by AI Policy Labs, an NAS is essential for inclusive growth, involving research capacity, workforce skilling, ethical frameworks, and economic competitiveness.
The Efficiency Promise: A 3-Day Workweek?
Dalio’s thread highlights a tantalizing possibility: AI could make a 3-day workweek a reality by automating mundane tasks and freeing humans for higher-value work. He estimates that companies could achieve the same revenue with 60% less work time, leading to exponential wealth growth. For a country like Sri Lanka, where labor-intensive industries dominate, this vision could revolutionize the economy. Imagine garment factories using AI to streamline production, or the tourism sector leveraging AI chatbots and predictive analytics to enhance visitor experiences while reducing operational costs.
However, Dalio cautions against blind trust in AI without deep understanding—a principle Sri Lanka must heed. The government and private sector must invest in AI literacy and infrastructure to ensure that automation benefits the broader population, not just a select few. Without such measures, the risk of job displacement looms large, particularly in sectors like manufacturing and services, which employ a significant portion of Sri Lanka’s workforce.
Navigating Global Power Shifts: The U.S.-China AI Race
Dalio’s second and third rules focus on the macroeconomic and geopolitical implications of AI. He warns of money cycles exacerbated by AI automation, noting that post-COVID government debts—like the U.S.’s 120% debt-to-GDP ratio—could lead to economic instability. In such cycles, he recommends investing in assets like gold and energy, which historically perform well during automation-driven disruptions. For Sri Lanka, this advice underscores the need to diversify its economic base and reduce reliance on foreign loans. The country could explore AI-driven renewable energy solutions, such as solar and wind optimization, to bolster energy security and attract sustainable foreign investment.
More critically, Dalio describes the U.S.-China AI competition as a “war no country can lose.” China’s advancements, exemplified by the DeepSeek model that matches U.S. AI performance with less compute despite chip bans, highlight the stakes(AI Prediction). Sri Lanka, as a smaller player, risks being sidelined in this global race unless it acts decisively. The U.S.-China rivalry could flood global markets with cheap AI solutions, as noted in a 2025 U.S.-China Competition hearing by the USCC, potentially disrupting local economies. Sri Lanka must position itself to benefit from these technologies while safeguarding national interests, perhaps by fostering partnerships with AI leaders in both the East and West.
The Risks: Inequality and Social Chaos
Dalio’s thread also addresses the darker side of AI’s rise: the potential for increased inequality and social chaos. He warns that AI might disproportionately benefit the wealthy, exacerbating income gaps, while jobs could disappear faster than new ones emerge. For Sri Lanka, where economic disparities are already a concern, this is a pressing issue. The government must prioritize reskilling programs to prepare workers for an AI-driven economy, focusing on digital literacy and STEM education(AI Prediction). Initiatives like Canada’s and India’s NAS frameworks, which emphasize workforce development and ethical AI use, could serve as models.
Moreover, Dalio’s caution about social chaos resonates deeply in a country with a history of political and economic instability. The government must ensure that AI adoption is inclusive, with policies that protect vulnerable populations and promote equitable growth. This aligns with AI Policy Labs’ recommendation that Sri Lanka’s NAS should focus on citizen well-being, privacy, and bias mitigation.
A Path Forward for Sri Lanka
Dalio’s overarching message is clear: the old rules of business are breaking down, and only the prepared will thrive in the AI era. For Sri Lanka, this means acting now to harness AI’s potential while mitigating its risks(AI Prediction). A government-driven NAS, as advocated by AI Policy Labs, is the first step. This strategy should prioritize:
Investment in AI Infrastructure: Build research hubs and partnerships with global tech leaders to foster innovation.
Workforce Skilling: Launch nationwide programs to train workers in AI-related fields, ensuring inclusivity across urban and rural areas.
Ethical AI Frameworks: Establish regulations to address privacy, safety, and bias, building public trust in AI technologies.
Sector-Specific AI Adoption: Focus on high-impact sectors like agriculture, tourism, and energy to drive economic growth and sustainability.
Dalio’s prediction that the next five years will feel like decades underscores the urgency of these measures. Sri Lanka cannot afford to be left behind in the global AI race(AI Prediction). By learning from established voices like Dalio and tailoring his strategies to local needs, the country can position itself for a future where AI drives inclusive growth, not inequality.
Conclusion: AI Prediction Preparing for Tomorrow, Today
Ray Dalio’s insights offer a roadmap for navigating the AI-driven future, but they also serve as a wake-up call for middle-income countries like Sri Lanka. The question Dalio poses in his thread—“Are you preparing for tomorrow, today?”—is one we must answer with action. By embracing AI with a clear, inclusive strategy, Sri Lanka can turn global challenges into opportunities, ensuring that the benefits of this technological revolution reach all its citizens. The time to act is now, before the “time warp” Dalio describes reshapes the world beyond recognition(AI Prediction).
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