Abstract:Recent breakthroughs in large language models (LLMs) have facilitated autonomous AI agents capable of imitating human-generated content. This technological advancement raises fundamental questions about AI's impact on the diversity and democratic value of information ecosystems. We introduce a large-scale simulation framework to examine AI-based imitation within news, a context crucial for public discourse. By systematically testing two distinct imitation strategies across a range of information environments varying in initial diversity, we demonstrate that AI-generated articles do not uniformly homogenize content. Instead, AI's influence is strongly context-dependent: AI-generated content can introduce valuable diversity in originally homogeneous news environments but diminish diversity in initially heterogeneous contexts. These results illustrate that the initial diversity of an information environment critically shapes AI's impact, challenging assumptions that AI-driven imitation uniformly threatens diversity. Instead, when information is initially homogeneous, AI-driven imitation can expand perspectives, styles, and topics. This is especially important in news contexts, where information diversity fosters richer public debate by exposing citizens to alternative viewpoints, challenging biases, and preventing narrative monopolies, which is essential for a resilient democracy.