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2025-11-04 03:51:00
US crypto and AI czar David Sacks argues that the biggest risk AI poses is not a Terminator-style revolt, but rather a dystopian future where AI spies on the population and controls what information they see.
Speaking on a Monday episode of a16z’s podcast, The Ben & Marc Show, Sacks discussed the Trump administration’s approach to crypto and AI regulation.
Sacks criticized the previous administration led by former US President Joe Biden, as well as current “blue states” like California and Colorado, for their “heavy-handed” approach to AI consumer protection laws aimed at addressing “algorithmic discrimination.”
The crypto and AI czar argued that over-regulation can mold AI tools to fit the ideological biases of the government, which can then be used to distort information and facts if they don’t fit particular agendas.
“What we’re really talking about is Orwellian AI. We’re talking about AI that lies to you, that distorts an answer, that rewrites history in real time to serve a current political agenda of the people who are in power,” he said, adding:
“On top of that you’ve got the surveillance issue. Where AI is gonna know everything about you. It’s gonna kind of be your personal assistant, and so it’s kind of the perfect tool for the government to monitor and control you. And to me, that is by far the biggest risk of AI.”
Sacks also emphasized the importance of punishing those who misuse the technology, rather than regulating the tools themselves or the firms that create them.
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He argued that over-regulation would make it challenging for AI firms to be compliant, as it’s almost impossible to know all the ways people will use AI. He also suggested that there are already laws in place to punish misuse, such as anti-discrimination laws.
“Presumably discrimination is already illegal, so if you’re already liable for that […] We don’t really need to go after the tool developer because we can already go after the business [user] that’s made that decision,” he said.
Crypto vs AI regulation
While Sacks emphasized a more hands-off approach for AI to promote innovation and win the AI race, he reiterated that the Trump administration is “pro-regulation” on crypto and wants to establish clear rules to support the industry.
“With AI, the idea is like, ‘how do we unleash innovation,’ and with crypto, I think it’s more been about ‘how do we create regulatory certainty,” he said.
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