This happens with me many times. And people misinterpret it. But then I thought for a while and now think that I should have some unambiguous sentence to convey my message.
Could you decrease the AC please?
Sure, why not.
Fifteen minutes later - Hey, it is chilling. Didn't you lower down the AC?
I certainly did. It was 22 degrees and I made it 18!
Ah, I mean decrease - make it less effective/intensive. The AC was too much.
Does increasing AC (Air Conditioning) means moving the degrees from 18 to 22 or 22 to 18? Both are right! The former is increase in AC as it's increasing in temperature and the latter one is correct in a way that it increased the intensity (like, increase the volume, it's not audible).