Relevant part in the middle of page 2: “The intuition is simple: if we think AI will dramatically increase the rate of economic growth, then (on average across the economy) we must expect to be richer in the future than we are today. This should decrease the marginal value of future consumption relative to present consumption, so real interest rates must rise in equilibrium. On the other hand, if we think AI poses an existential risk, and so doubt that we will be alive in the future, this should also drive up interest rates. Thus, both higher growth expectations and more concern for existential risk should increase real interest rates.”
This idea seems to have been expounded on in this paper: https://economics.mit.edu/sites/default/files/2025-07/Pricing%20Transformative%20AI_0.pdf.
Relevant part in the middle of page 2: “The intuition is simple: if we think AI will dramatically increase the rate of economic growth, then (on average across the economy) we must expect to be richer in the future than we are today. This should decrease the marginal value of future consumption relative to present consumption, so real interest rates must rise in equilibrium. On the other hand, if we think AI poses an existential risk, and so doubt that we will be alive in the future, this should also drive up interest rates. Thus, both higher growth expectations and more concern for existential risk should increase real interest rates.”