Generative AI: A Double-Edged Sword for Western Democracy

Jo Ritzen
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Jo Ritzen: Mt Economic Research Inst on Innov/Techn, RS: GSBE MGSoG, RS: UNU-MERIT Theme 3

No 2025-021, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: The advent of generative artificial intelligence (AI) has sparked a critical debate: will it fortify democratic institutions or accelerate their decline? This paper evaluates AI’s dual role as both a potential guardian and disruptor of democracy in the Western hemisphere. At the centre of analysis stands the traditional economic model of human decision making, with information asymmetry. Personalized advertising, based on clicks, recorded purchase- and social media behaviour are powerful sales-boosters. Without being held to ethical boundaries, generative AI will increase rather than reduce the asymmetries in markets. Translating the economic model to voting behaviour the same asymmetry appears. Drawing on case studies, empirical research, and policy analyses, the paper explores how AI’s capabilities—from spreading disinformation to enhancing civic engagement—shape democratic resilience. The discussion emphasizes the urgent need for balanced governance to harness AI’s benefits while mitigating its risks. By synthesizing insights from recent elections, regulatory frameworks, and socio-political trends, this paper argues that proactive, multi-sectoral collaboration is essential to ensure AI serves as a bulwark rather than a threat to democratic values.

JEL-codes: D72 D83 L51 O33 O38 (search for similar items in EconPapers)
Date: 2025-10-01
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2025021

DOI: 10.53330/BXZF3714

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