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A Silver Lining? Consumer Preferences over Human-Made and AI-Generated Production in Two Domains

A collage that merges circuit board patterns with textile motifs in a grid-like background of alternating black, grey, and white. Two hand-drawn arms are on each side of the image, positioned as if gently pulling on thin, white strings that cross the image diagonally. The hands appear soft and somewhat translucent, contrasting with the rigid lines of the circuit board patterns behind them. The strings are woven through both the hands and the background, symbolising the connection between traditional weaving and modern technology. The overall colour palette features muted earth tones, including browns, beiges, and grays, creating a sense of both history and continuity between the natural and technological worlds..

A Creative PEC Discussion Paper

Tom Lane, Harry Pickard, Matthew J. Walker (Newcastle University Business School) & Timo Heinrich (Hamburg University of Technology)

Abstract

Artificial intelligence can now generate outputs that were once the preserve of human labour. Yet well-documented algorithm aversion raises the possibility of consumer bias in favour of human-made work. This paper uses incentivised experimental auctions and state-of-the-art generative AI models to compare consumer valuations for human-made versus AI-generated images and poetry, sold respectively as physical prints and on mugs. In a broad population sample from the UK, we observe a premium for human-made work in consumer valuations. However, among the youngest participants we observe no such premium, mirroring the findings of a laboratory study with student participants. Demand for AI-generated outputs varies with individuals’ attitudes toward AI. Whether the age pattern reflects ageing or cohort replacement will determine whether consumer preferences can help sustain human labour.

Citation

If the information in this report is used in any subsequent research and/or publications, please cite as follows: Lane, T., Pickard, H., Walker, M.J. and Heinrich, T. (2026) A Silver Lining? Consumer Preferences over Human-Made and AI-Generated Production in Two Domains, Creative PEC Discussion Papers Series No. 2026/1. Doi:

Creative PEC Discussion Paper Series

Creative PEC’s Discussion Papers are a collection of publications designed to share ideas and foster debate among academics, policymakers and practitioners on creative industries’ evidence and policies. The papers follow an editorial approval process aimed at preserving a pluralism of views whilst maintaining the high academic standards of Creative PEC.

All Discussion Papers are published subject to editorial discretion. Any views and interpretations expressed in Creative PEC Discussion Papers lie solely with the author(s) and should not be understood as being shared by Creative PEC, its staff (including the Editor of the Series), Newcastle University, the RSA, or the AHRC.

Image: Hanna Barakat & Archival Images of AI + AIxDESIGN / https://betterimagesofai.org / https://creativecommons.org/licenses/by/4.0/

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