David Sacks Outlines AI Regulatory Risks on a16z Podcast
David Sacks, known for his advisory roles in both crypto and AI policy, has raised concerns about heavy regulation of artificial intelligence. Speaking on a recent episode of a16zs The Ben & Marc Show podcast, Sacks detailed potential consequences of strict rules on AI and contrasted regulatory approaches for AI and crypto industries in the United States.
AI Oversight Risks Censorship and Bias, Sacks Says
Sacks argued that the most significant risk posed by AI is not a technological uprising but government misuse. He warned that regulatory frameworks targeting issues like algorithmic discrimination could lead to a situation where AI is used to monitor the public or manipulate information. "What were really talking about is Orwellian AI. Were 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," said Sacks.
He specifically criticized regulatory strategies enacted under the Biden administration, as well as those in "blue states" such as California. According to Sacks, rules designed to address bias could be adopted to steer AI systems toward aligning with government preferences, restricting what information citizens receive.
Layered Legal Approach Favors Penalizing Misusers
Sacks highlighted the importance of distinguishing between those who create AI tools and those who employ them improperly. He advocated for using existing anti-discrimination laws to hold entities accountable for misuse instead of imposing broad compliance burdens on developers and technology firms. "Discrimination is already illegal, so if youre liable for that, we dont really need to go after the tool developer because we can go after the business user thats made that decision," he stated.
Different Priorities for AI and Crypto Policy
Sacks also discussed differences between policy approaches for AI and crypto. He stated the Trump administration, which he advised, prioritized regulatory clarity for the crypto sector to support industry growth. In contrast, Sacks said a more permissive environment is needed for AI to foster innovation. "With AI, the idea is 'how do we unleash innovation,' and with crypto, it's more about 'how do we create regulatory certainty,'" Sacks noted.
The comments arrive as U.S. officials consider new rules for both sectors amid concerns over innovation, consumer safety, and information control.
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