Buying a computer? AI is making it more expensive.

Artificial intelligence puts powerful new technology in consumers’ hands — if they can afford to use it. 

The rise of AI requires enormous computing power, which in turn is leading to a shortage of memory chips. That’s pushing up the price of personal computers, according to analysts with Oxford Economics — the first time those prices have risen since the early 1980s. Computer costs had steadily declined over the past 40 years until the AI boom reversed that trend. 

Recently, the cost of computers, software, and accessories has jumped more than 3% per month, according to Oxford’s analysis of government data. 

“We’re talking about chip-intensive products that historically, we’ve seen prices remain flat or decrease,” Bernard Yaros, lead economist with the investment advisory firm, told CBS News. “It’s still early days and difficult to say if this is a blip or a trend, but it’s been a few months now. It’s putting a lot of the inflationary effects from AI into the limelight.”

Analysts expect the chip shortage to continue at least through the end of 2027. Although surging investment in AI is boosting computer costs in the near term, analysts expect that waning consumer demand for hardware is likely to eventually bring prices into line as sellers compete for market share. 

AI is driving up prices in other ways. Rising energy consumption from the buildout of data centers required to power AI is straining the nation’s electric grid and boosting utility bills. Meanwhile, the boom is stoking the value of technology stocks.

“That supports spending by people with wealth tied up in the stock market, which drives more spending, which drives higher inflation,” Yaros said.