Concerns exist regarding the impact on our lives of the rise of artificial intelligence (AI). Using a large dataset of 137 countries over the period 2005–2018 from multiple sources, we estimate the causal effect of AI on individual‐level subjective wellbeing. Our identification strategy is inferred from the gravity framework and uses merely the variation in exogenous drivers of a country's AI development. We find a significant negative effect of AI on an individual's wellbeing, in terms of current levels or expectations of future wellbeing. The results are robust to alternative measures of AI, identification strategies, and sampling. Moreover, we find evidence of significant heterogeneity in the impact of AI on individual wellbeing. Further, this dampening effect on individual wellbeing resulting from the use of AI is more prominent among young people, men, high‐income groups, high‐skilled groups, and manufacturing workers.

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