ARK Invest founder Cathie Wood has highlighted the emerging deflationary impact of AI and technological innovation on the bond market. Wood noted that as the costs of AI model training and inference plummet, underlying productivity is accelerating, leading to a buildup of deflationary forces linked to innovation. She forecasts that inflation levels could unexpectedly decline over the next 6 to 9 months, as the market underestimates the speed and scale at which technological innovation is reshaping the macroeconomic landscape. This trend is expected to have significant implications for future interest rate movements.