In regards to AI, there’s a lot to love, and a lot to be skeptical about. But as more and more technologies adopt AI algorithms, its impact has only spread. And whether we seek it out or not, it has the power to change everything from our monthly budgets to our savings account balances.

In fact, there are two key ways that AI may be impacting your day-to-day finances that you may not even realize. Here’s what you need to know.

Rental price-fixing allegations

If you’re a renter, there is a chance that your unit’s price was set based on recommendations by RealPage, which serves over 24 million units worldwide. According to the more than 20 class-action lawsuits (some of which have recently settled), landlords using the company engaged in an AI-enabled price-fixing conspiracy to raise rental prices.

And notably, the Department of Justice (DOJ) recently filed suit against RealPage, backing up these allegations and accusing the company of violating antitrust laws.

According to an investigation by ProPublica, landlords who signed up to use RealPage, a property management software company, got access to a revenue-management system that used an AI algorithm to “optimize” the prices they were setting for different units by raising prices outright, or lowering the occupancy rate.

For example, if a landlord typically charges $1,200 for a studio, RealPage — which does state it “outperforms the market 2% to 5%” on its website — might have suggested a price of $1,260 based on many factors, including private rates from other units in the area. For those who can afford that higher price, that would represent $720 less in your pocket over the course of a year.

This software, defendants allege, allowed the artificial raising of rent prices across the country, including cities like Seattle, Boston, Colorado, and New York, by sharing otherwise private pricing data in their area and suggesting increases. RealPage has denied these allegations.

Dynamic-pricing-based grocery bills

Inflation may not be the only factor that increased your grocery bill in recent years: You may be paying more thanks to a dynamic pricing model that’s recently been shown in use by Kroger. For those who are unfamiliar, you should note that the company raked in over $3 billion in profits in 2023 and also owns grocery stores throughout the country under different brands such as:

• Fred Meyer
• Food 4 Less
• QFC
• Ralphs

The dynamic pricing model means these stores are able to change the price of products on electronic price tags, based on factors like your personal customer profile (including age and gender, which can soon be gathered via data pulled from facial recognition technology, thanks to a partnership with Microsoft), weather, and time of day.

So if you go into one of these stores to purchase water on a hot summer day, there is a possibility that you’ll pay a premium for that water, compared to a cooler day or time. And all it would take is a few keystrokes. Not only can this hurt your budget, but it can lead to some alarming implications around access to the necessities sold at grocery stores.

Large retailers like Whole Foods and Amazon Fresh stores also use electronic labels. And in June of 2024, Walmart announced an intention to use similar technology in stores.

But there has been pushback here recently. For example, Senators Elizabeth Warren and Robert P. Casey sent a letter of concern about the dynamic pricing model to Kroger CEO Rodney McMullen in early August of 2024. In that, they called out the potential for price gouging as well as the exploitation of customer data.

So what’s the solution?

There isn’t one easy way to avoid AI from encroaching on your budget, especially as it takes time for the government to catch up to new technologies and place appropriate limitations and protections on them. But there are some steps you can take to avoid these specific options, such as shopping local, smaller grocery stores when possible and getting recommendations for buildings and landlords from people you trust.

Regardless, it’s good to be aware of the ways that AI can have an impact on your bank account. That way, you’ll be well-equipped to seek out alternatives to minimize its impact on your finances.