Goldman Sachs warns that AI is raising computer and electricity costs

Goldman Sachs strategist Manuel Abecasis warned that the artificial intelligence revolution is having an inflationary impact on the US economy. AI has raised costs for US households in three ways: by increasing prices of computer accessories and smartphones, by putting upward pressure on software prices, and by driving up electricity prices in some regions. Abecasis estimated that AI-related price pressures have increased core Personal Consumption Expenditures and core Consumer Price Index inflation by 0.3 and 0.1 percentage points, respectively, over the past year. He expects AI to continue boosting inflation over the next couple of years. Florida Gov. Ron DeSantis has taken steps to protect consumers from utility companies raising rates due to AI-driven costs. DeSantis signed a bill blocking utility companies from raising rates on consumers if they do a deal with data centers, effective July 1.