The tariff war started by President Donald Trump will likely push the U.S. economy into a recession, but investors should look beyond the current volatilities and think about what kind of recovery the country will enter, says Cathie Wood, CEO of asset management firm ARK Invest, in an interview with Barron's on Wednesday.

Wood believes that during tough economic times, companies offering innovative solutions -- like some of the top holdings in her funds -- tend to gain traction. These firms are well-positioned to benefit as businesses seek efficiency and cost-saving strategies, especially with artificial intelligence and technological advancements in recent years.

"When businesses and consumers are scared, they'll change the way they do things, and that's usually good for the companies that are helping others do things better, cheaper, faster, more creatively, and more productively," she told Barron's.

The fund manager thinks Palantir Technologies Inc., a software company that uses AI to help organizations make sense of their data, will be a big beneficiary. The company's main business comes from the government, where it helps different agencies turn messy data into something that can be used to make better decisions. Palantir is applying the technology to large corporations as well.

"We think Palantir is going to be one of the biggest beneficiaries as companies try and make themselves more efficient and move into the AI age," she said, "You've got the C-suite really trying to figure this out, understanding strategically that if they don't jump into the AI age, they'll be left behind."

She also remains bullish on Tesla Motors, despite the stock's slump until rocketing up Wednesday. Shares have lost 28% year to date as investors worry about weak sales and built-up inventories. Wood noted that Tesla is going to launch a new car in this quarter with lower prices -- likely half of a typical model Y -- at about $30,000.

"This will help bring affordability back into auto buying," she said. The expected launch of Tesla's robot taxi service would also help consumers save on the large upfront costs of buying a car, she said. People can pay for rides as they go, as they're doing with Uber and Lyft, Inc. today -- just at much cheaper prices without the costs of a human driver.

Tesla also sources more North American parts than most auto manufacturers in the U.S., said Wood. That means even with tariffs, it isn't going to be hit as hard.

Tesla CEO Elon Musk's recent involvement with the Trump administration have dented the firm's brand along with its sales and stock prices. When asked about her view on Musk, Wood shrugged it off: "News cycles pass quickly nowadays, and the best cars are going to win."

In healthcare, she likes biotech firms that help diagnose diseases early or cure diseases. Two stocks she likes: CRISPR Therapeutics AG, which uses the Crispr technology to treat diseases caused by genetic mistakes; and Tempest AI, which uses AI and electronic health records to help diagnose diseases early.

Innovation stocks have been hit hard in the past few years as high interest rates discounted their future cash flow, denting investor confidence in their high valuations. But much of the bad news has been discounted already, said Wood, and many stocks might actually be a great deal right now.

Wood acknowledged that a lot of these firms aren't free cash flow positive yet, but noted that many have a cash runway of four to six years, which should be enough for them to survive the current economic downturn.