What If AI Actually Made Stuff Cheaper?

The other day, I was wandering around the Stony Brook campus store — not really looking for anything, just avoiding my laptop as usual. I spotted this hoodie. You know the one:  soft and oversized, classic maroon with “Stony Brook” on it. I flipped the tag and froze. Sixty-five bucks. For a hoodie?

I just stood there, half laughing, half offended. When did hoodies become a luxury? I walked out without buying it, obviously, but the price stuck in my head. But it’s not just hoodies — it’s everything. Groceries, rent, clothes, tuition. The cost of living is going up again, yet for some reason, we’re standing on the same floor. 

But what if we didn't have to? What if stuff actually got cheaper? Imagine a world where prices for everyday necessities don’t keep getting more expensive, where prices actually fall. Sounds like wishing thinking, right? But here’s a twist: AI could turn that dream into reality. Not decades from now, but possibly sooner than we expect. 

Big claim, I know. But hear me out.

AI and the Secret Story Behind What We Wear

Most of us never gave supply chains a thought , the invisible pipelines of our economy.  But they quietly control the price of almost everything. 

Take that hoodie. It’s probably stitched in Vietnam. Then it was loaded onto a ship, crossed the Pacific, unloaded in California, stored in a warehouse in New Jersey, and finally ended up here on our Stony Brook campus. Every single step has costs attached, like labor, fuel, storage, insurance, and they all pile up. By the time it gets to the shelf, that hoodie has lived a longer life than some study abroad students. 

This is where AI gets interesting. It’s not just about replacing workers with robots; it’s about optimizing decisions. Think of AI as the brain of the supply chain. McKinsey estimates AI could reduce supply chain forecasting errors by 50%, cut lost sales by 65%, and lower warehousing costs by 20%. That’s huge. 

Think about a port like Los Angeles. It moves around nine million containers a year. In 2021 and 2022, delays there caused about 240 billion dollars in losses for consumers. That’s not pocket change. Even the port’s early AI systems have begun to have an impact. They contributed to a 15-20% reduction in turnaround times. Faster ports result in lower shipping costs, cheaper storage and eventually have its impact on the prices of hoodies. Even if that might not sound glamorous at first, slowly, all those little saves will start to add up. 

Deflation, But the Good Kind 

Usually, when economists hear prices are falling, they panic. Deflation has a bad reputation because it usually means the economy is slowing down and people aren't buying. But AI-driven efficiency is different. It’s like “smart deflation” — Prices don't fall because of demand crashes, but because we can actually move things better, faster and cheaper now. 

Goldman Sachs thinks generative AI could boost global GDP by 7% over the next decade and cut manufacturing and logistics costs by up to 30%. That’s not just a rounding error, that’s real money. 

Here’s where we can all relate. A private economic analysis done by Savvy Wealth has estimated that efficiency gains from AI might translate into an estimated 0.5 to 0.7 percentage-point annual drag on Consumer Price Index¹. At first that doesn’t sound like a big deal. But over time, it adds up. Your grocery bill, your rent, even the utility bills that seem to keep going up could actually start to feel different. Smart construction, more affordable materials, more effective transportation and improved energy utilization are all possible. In other words, the necessities that put a strain on our wallets may finally allow us some breathing room. 

In the AI Economy, Is Anyone Safe?

Here’s a side thought I keep coming back to. If AI changes cost this much, it’s also changing the factors of production. Capital and labor. The balance between them has shaped wages, power, everything, for centuries. 

If AI increases productivity, capital's share may increase as more work is done by machines and algorithms. At least in traditional jobs, labor's share may decrease. Consider trucking firms that utilize fewer dispatchers or warehouses with fewer pickers. However, a long-term unemployment crisis need not result from that. People can take on jobs that AI isn't yet very good at, including maintenance, innovative problem solving, or supervision. Additionally, even a decreased labor share may not seem like such a loss if living expenses decline but pay remains constant. It's an odd change to visualize, but it's also quite intriguing.

The Algorithm of Advantage 

Zooming out for a second, the U.S. is in a really strong spot. Over half the top AI models are made here. Companies like Walmart and Amazon already use AI to figure out what customers want before they even click. Realistically speaking, Europe’s tangled up in regulations and China’s dealing with trade issues and politics. Meanwhile, the United States has the technology and market dominance to swiftly accelerate these developments. America's military, currency and technology have historically contributed to its dominance in the world. Supply chains driven by AI may slowly add another piece to that jigsaw puzzle. Directing the algorithms that reduce the cost of international transportation is a form of power and of itself. 

Smarter Systems. Sweeter Results

Picture this — the Stony Brook campus store starts using AI to time its orders for hoodies, notebooks, snacks, whatever. Instead of guessing, it would examine years’; worth of sales data, weather trends and even stress increases during finals week. There would be no enormous leftovers or empty shelves. Shipments arrive just when they’re needed. 

Through a Wider Lens

Of course, nothing happens overnight. There will be job shifts, cybersecurity risks, and messy transitions. But that’s how every big shift has worked, from electricity to the internet. 

What;s exiting is the big picture. AI may really make life more affordable. By prioritizing AI in certain fields, we can become smarter with how we move and purchase goods rather than by lowering quality. More importantly, if the United States encourages this transition, it may increase its worldwide influence in a way that feels more subtle intentional innovation than brute force

Imagine walking into that same campus store ten years from now, picking up a hoodie, flipping the tag , and being surprised in a good way. 

Yeah. That’d be nice.

[1] Barone, Joshua. “How AI Is Driving Structural Disinflation in the U.S. Economy.” How AI Is Driving Structural Disinflation in the U.S. Economy, www.savvywealth.com/blog-posts/ai-is-quietly-creating-disinflation-deflation-in-the-u-s-economy. Accessed 4 Dec. 2025.