Sowilo’s Sandip Agarwal on AI fears after Citrini’s ‘The 2028 Global Intelligence Crisis’ viral report

AI-driven disruption fears have returned to the centre of market debate after Citrini’s ‘The 2028 Global Intelligence Crisis’ report went viral and was cited as one of the triggers behind the recent global selloff in technology stocks.Sandip Agarwal, Fund Manager at Sowilo Investment Managers, believes markets may be reacting too quickly to what is still a long-term possibility. “I believe that it is very short duration of time in which people are taking a very long call,” he said.

The Citirini report outlines a scenario where rapid gains in productivity from artificial intelligence (AI) could weaken consumer demand by reducing wage income, eventually disrupting sectors such as software, IT services, payments and private credit. However, Agarwal said the current reaction across global technology stocks may be overstated.
“Stocks are right now reacting because there is lot of fear,” he said, adding that a large part of the correction in the information technology sector may have already taken place over the past year.While software businesses may see faster disruption, Agarwal pointed out that services-led companies, particularly Indian IT firms, operate differently and may not face immediate structural risks. “It is a time period of five to 7-10 years which it takes. It cannot happen overnight,” he said.

In fact, he sees emerging artificial intelligence tools that can modernise legacy technology systems as a potential opportunity rather than a threat. Many global enterprises continue to rely on decades-old architecture that has remained unchanged due to operational risks. “I see this as a positive development and not negative development,” Agarwal said.

Over time, productivity gains from artificial intelligence could improve efficiency and reduce costs, but may also increase the volume of work as companies upgrade systems within existing technology budgets. “Software is the first one to go and IT services will have to, you know, re skill itself,” he said.

According to Agarwal, disruption is likely to play out gradually across sectors such as payments and private credit, with IT services adapting through reskilling and application-layer work over the coming years rather than facing an immediate demand shock.

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