Artificial intelligence is already reshaping democracy — and not in subtle ways. That is the central message of Rewiring Democracy, the new book by security technologist Bruce Schneier of Harvard Kennedy School and data scientist Nathan Sanders, and the focus of my recent conversation with Bruce on the Economics Explored podcast.
The book’s core claim is striking: AI’s impact on democracy will be far larger than that of social media. The reason is simple. Democracy is a deeply human institution — built on human judgement, persuasion, administration, and participation — and AI is increasingly embedded in all of those processes.
One of the most important takeaways from Rewiring Democracy is that AI is already affecting democratic systems, often invisibly. Of course, we are still in the early years of AI adoption, and so far, there has been a mix of successes and failures in AI experiments.
To illustrate, AI tools are now being used in:
Individually, many of these uses look incremental. Collectively, they amount to a fundamental change in how democratic systems function.
Schneier’s argument is not that AI is inherently pro- or anti-democratic. Instead, AI amplifies existing power structures.
If democratic institutions are strong, accountable, and well governed, AI can help them work better — faster administration, better-informed citizens, and more inclusive participation. If institutions are weak, captured, or drifting toward authoritarianism, AI can just as easily accelerate that drift.
This is why Schneier repeatedly emphasises that the biggest risks are not technical, but institutional and economic. Today’s most powerful AI systems are controlled by a small number of very large technology firms, operating under incentives that prioritise commercial returns rather than democratic outcomes.
From an economic perspective, this is familiar territory: scale economies, network effects, and market concentration combined with weak regulation rarely deliver socially optimal outcomes.
Where Rewiring Democracy is particularly strong is in rejecting fatalism. The book argues that AI also creates opportunities to rethink and strengthen democratic processes.
One example is citizen participation. AI can dramatically lower the cost of organising, moderating, and synthesising large-scale public deliberation. Experiments with AI-facilitated citizen assemblies — involving hundreds or thousands of participants in countries such as Germany and Scotland — would have been inconceivable using traditional methods.
This is not about replacing representative democracy, but about augmenting it: giving citizens more meaningful ways to engage, and giving decision-makers better insight into public preferences and trade-offs.
In economic terms, AI changes the scale economics of deliberation and participation.
Schneier is clear that better outcomes will not emerge automatically. Two ideas stand out in his view.
First, the concept of public AI: AI systems developed transparently, without corporate control, and explicitly for public benefit. A recent Swiss government–university partnership, the Swiss government–ETH Zurich model, shows this is feasible without the astronomical costs often claimed by industry.
Second, the need for regulation. Transparency alone is not enough; it must be paired with accountability. AI systems that can influence behaviour, shape information environments, or make consequential decisions should be treated like other powerful technologies — regulated to manage risk, limit abuse, and curb excessive concentration of power.
Antitrust policy, in particular, matters. Democracies function poorly when economic power becomes too concentrated, and AI raises the stakes.
The key message for policymakers, economists, and citizens is that AI is already rewiring democracy. The question is whether we shape that process deliberately or allow it to be driven by narrow commercial incentives.
Rewiring Democracy is not a book about technology alone. It is about power, institutions, and governance — and it deserves the attention of anyone concerned with the future of democratic societies.
You can listen to my full conversation with Bruce Schneier on the Economics Explored podcast, where we explore these ideas in more depth.