The double-edged nature of generative artificial intelligence (AI) underscores the importance of understanding complex and paradoxical public views about this emerging technology. Heeding to this call, this study examined how the general public perceives and reacts to Chat GPT and the implications of these perceptions, drawing on the third-person and first-person effect. A national survey in the United States ( N = 1004) revealed that individuals tend to believe they would personally benefit from the positive influence of Chat GPT, while others will benefit relatively less. Also, results showed that people believe that self is more capable of using Chat GPT critically, ethically, and efficiently than others. Interestingly, the self-other gap in perceived efficacy was influenced by subjective knowledge but not by objective knowledge about Chat GPT. The self-other gap in perceived efficacy negatively predicted support for government regulation of Chat GPT, while the self-other gap in both perceived influence and efficacy positively predicted support for literacy interventions.