Rage Against the Machine? Generative AI Exposure, Subjective Risk, and Policy Preferences

Abstract

How does novel technology change public policy demands? Scholars interested in the effect of automation on policy preferences have commonly argued that exposure to automation technology increases subjective risk, which in turn predicts demand for insurance. Generative AI potentially challenges this dynamic. Based on a pre-registered online experiment with a sample of 1,041 UK working-age adults we show that direct exposure to generative AI in realistic work tasks does not increase subjective risk but does strengthen support for activating social policy. To understand this constellation of attitudes, we argue that exposure to technology may activate sociotropic preferences to support individuals who might be negatively affected by AI. Text analysis shows cautious optimism and thoughtful engagement with the implications of AI for work and social policy. Our findings suggest that the current uncertainty over the relative winners and losers from AI opens a window of opportunity to expand activating social policies.

Keywords: generative AI, survey experiment, political preferences, social insurance, text analysis, technological change, unemployment, social policy

JEL Classification: O33, I38, P16