Running the AC increases total load on the engine which then puts more heat into the radiator. At the same time the AC condensor is releasing heat which also flows across the radiator making it more difficult to cool the the water inside. And since your transmission fluid flows through the radiator first it becomes hotter and since the ATF will spend the same amount of time in the air/oil cooler as it always has, the fluid goes back to the trans hotter.
170* ATF is nothing to get excited about. I shut the AC off that day on the Rubicon because I took the rising trans temp as an indication of rising water temp and at that time I did not have a water temp gauge installed yet.
A quick check with my infrared thermometer confirmed that my engine head was 216*. The AC will shut off automatically at 226*.