AI expansion drives up electronics costs and shifts consumer shopping habits

The rapid expansion of artificial intelligence is impacting the consumer electronics market by driving up the costs of computers and smartphones. Due to the high demand for AI data centers, approximately 35-40% of global DRAM production capacity is being diverted to the AI market. Because the same manufacturing facilities produce memory for both AI systems and consumer devices, this shift is creating component shortages and increasing production costs.

Experts predict that DRAM memory contract prices will rise by another 15-20% in the third quarter of this year. Memory components now account for roughly 23% of total computer assembly costs, up from a previous 16%.

In Lithuania, consumer behavior is also shifting due to AI. A study by Adyen and Norstat reveals that nearly half of Lithuanian consumers have used AI platforms to assist in purchasing decisions. Consumers primarily use AI to compare products, quickly review features, and find items that best suit their needs. While this presents a new sales channel for companies, nearly one-third of retailers expressed concern over losing direct visibility into the customer journey and becoming overly dependent on third-party AI intermediaries.