Artificial intelligence is no longer just a buzzword – it’s part of our daily lives.

Whether you’re asking ChatGPT for a recipe, generating images with Midjourney, or tinkering with smart devices at home, chances are you’ve used AI without thinking twice about the energy behind it.

But as AI becomes more embedded in our homes and routines, questions are being raised about just how much power these technologies consume. Earlier this year, Scientific American reported that AI tools use ten times more energy than traditional search engines, sparking concerns about their environmental and financial impact.

To explore the issue, iSelect has released the Smart Home Energy Burden Index, which ranks 21 countries on how much electricity their households are using — and paying — when it comes to AI tools and smart devices.

The countries consuming the most energy with AI

By analysing AI search interest, smart device popularity, electricity usage, and costs, the index paints a clear picture of where AI has the biggest household energy footprint. Here are the top ten countries leading the pack:

1. Portugal

Portugal sits at the top with a score of 68.19 out of 100. Its residents searched for AI tools more than any other nation – about 4705 searches per 1000 people in the past year. With households using more than 5100 kWh annually and electricity prices at about $0.36 AUD/kWh, AI use is no small addition to the power bill.

2. Luxembourg

Luxembourg takes second place, driven by high AI interest and the largest share of renewable energy (90%) of any country in the index. While its clean energy credentials are impressive, households also consume a hefty 11,168 kWh per capita each year, pushing up its energy burden score.

3. Australia

Australia ranks third, showing just how quickly we’ve embraced smart technology. Aussies had the highest search volume for smart home devices worldwide last year, alongside strong demand for AI tools. With households using nearly 9832 kWh annually, the tech boom comes with significant energy costs – something many families are already feeling in their bills.

4. Spain

Spain combines one of the world’s highest AI search volumes with relatively modest household energy use (just over 5100 kWh per capita). This balance places it fourth overall.

5. The Netherlands

The Netherlands rounds out the top five. While not the top AI adopter, Dutch households showed strong interest in smart devices, particularly products like smart speakers and video doorbells, boosting their overall score.

6. Denmark

Denmark’s residents pay some of the world’s highest electricity prices — about A$0.55 per kWh — tying with Switzerland. High costs, combined with growing AI interest, put Denmark sixth in the index, despite its heavy reliance on renewables (88%).

7. United Kingdom

The UK claims the title of highest household electricity prices in the rankings, at A$0.62 per kWh. While AI search interest is lower here, Brits are highly engaged with smart devices, particularly home assistants and connected gadgets.

8. Sweden Sweden uses the most electricity per person in the top 10 — over 12,000 kWh annually — but cheaper energy costs balance things out. Paired with steady AI interest, it ranks eighth overall.

9. Austria

Austria sneaks into the top 10 thanks to strong AI adoption (3274 searches per 1000 residents) despite its low smart device interest. Its relatively high energy prices keep household costs elevated.

10. Switzerland

Switzerland closes the list with a score of 49.91, driven by high energy costs and strong AI interest. It edges out Turkey and Norway for a place in the top ten.

The least energy-hungry AI nations

At the other end of the spectrum, Czechia consumes the least energy when it comes to AI use. With just 1465 searches per 1000 people for AI tools and minimal smart device adoption, its households face a far lower energy burden.

Other lower-ranking countries include:

• Italy (38.12)
• Germany (38.58)
• Poland (39.69)

Surprisingly, the United States comes in at only #17 (40.28), despite being one of the biggest players in AI innovation. American households searched less for AI compared to European countries, and their relatively low electricity prices kept costs down.

What this means for Australia

For Australians, the results are telling. Our appetite for both AI tools and smart home devices is among the highest in the world. While this positions us as early adopters of new technology, it also means our households are carrying a higher energy burden.

With power prices already a hot-button issue, the growing reliance on AI raises questions about sustainability – both for household budgets and the environment. While Australia is expanding its renewable energy capacity, the current electricity usage tied to AI suggests that consumers may soon need to weigh convenience against cost.

Managing your own energy burden

The Smart Home Energy Burden Index highlights a key truth: AI isn’t just a tech trend – it’s an energy issue. Whether you’re streaming content from an AI-powered platform, using a chatbot for work, or running your home through smart devices, these tools draw power that adds up on your bill.

The good news? There are steps you can take to manage it:

• Switch providers – Comparing energy plans can help households save hundreds of dollars a year.
• Be smart about smart devices – Use energy-saving settings where possible, and unplug devices that don’t need to be always on.
• Track your usage – Many smart meters now allow households to monitor electricity consumption in real time, helping spot patterns and reduce waste.

Final thoughts

AI tools and smart technology are here to stay. They’re changing how we work, play, and manage our homes – but they’re also changing our energy consumption in ways we’re only beginning to understand.

For Australians, the challenge will be striking the balance: embracing the benefits of AI while keeping energy bills and environmental impact under control.

The next time you ask ChatGPT a question or set up a smart device, remember – behind every clever response or automated task is a little extra energy being drawn from the grid.

The views expressed in this article may or may not reflect those of Pearls and Irritations.