Abstract

The pace of technological change continues to outstrip the evolution of democratic institutions, creating an urgent need for innovative approaches to democratic reform. However, the experimentation bottleneck - characterized by slow speed, high costs, limited scalability, and ethical risks - has long hindered progress in democracy research. This paper proposes a novel solution: employing generative artificial intelligence (GenAI) to create synthetic data through the simulation of digital homunculi, GenAI-powered entities designed to mimic human behavior in social contexts. By enabling rapid, low-risk experimentation with alternative institutional designs, this approach could significantly accelerate democratic innovation. I examine the potential of GenAI-assisted research to mitigate current limitations in democratic experimentation, including the ability to simulate large-scale societal interactions and test complex institutional mechanisms. While acknowledging potential risks such as algorithmic bias, reproducibility challenges, and AI alignment issues, I argue that the benefits of synthetic data are likely to outweigh their drawbacks if implemented with proper caution. To address existing challenges, I propose a range of technical, methodological, and institutional adaptations. The paper concludes with a call for interdisciplinary collaboration in the development and implementation of GenAI-assisted methods in democracy research, highlighting their potential to bridge the gap between democratic theory and practice in an era of rapid technological change.