Artificial intelligence, despite its benefits, is contributing to the affordability crisis and high cost of living. Households are spending over $375 more annually due to AI’s inflationary impact. This increased cost manifests in higher electricity bills, computer prices, and construction expenses. AI data centers are consuming significant electricity, straining power grids and leading utility companies to pass costs to consumers. The demand for computing power means data centers consumed 4.4% of U.S. electricity in 2023 and this is projected to rise. Furthermore, AI is expected to displace between 10% and 15% of U.S. jobs within five years. Even for jobs that remain, their nature will likely change significantly. A surge in data center construction has also increased demand for building materials and labor, impacting homebuilding. The need for high-bandwidth memory for AI data centers has caused a shortage in the chip market. This shortage is directly contributing to increased prices for laptops, desktops, and smartphones. The combined effects of these factors make AI an indirect but significant cost to consumers.