David Sacks, a prominent figure in the cryptocurrency and artificial intelligence sectors in the US, contends that the most significant threat posed by AI is not a scenario of sentient machines rebelling, but rather a dystopian future characterized by pervasive AI surveillance and the manipulation of information.
During a discussion on a recent episode of a16z's podcast, "The Ben & Marc Show," Sacks shared his views on the regulatory approaches to crypto and AI, particularly concerning the Trump administration's stance.
Sacks expressed criticism of the previous administration led by former US President Joe Biden, as well as current regulatory trends in "blue states" like California and Colorado. He described their approach to AI consumer protection laws, which aim to address "algorithmic discrimination," as "heavy-handed."
The crypto and AI czar argued that excessive regulation could lead to AI tools being shaped by the ideological biases of those in power. This, in turn, could result in the distortion of information and facts to align with specific political 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 stated. "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 highlighted the importance of holding individuals accountable for misusing AI technology, rather than focusing on regulating the tools themselves or the companies that develop them.
He reasoned that over-regulation would create significant compliance challenges for AI firms, given the inherent difficulty in anticipating all potential uses of the technology. Furthermore, he suggested that existing laws, such as anti-discrimination statutes, already provide mechanisms to punish misuse.
“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 explained.
Crypto vs. AI Regulation
While Sacks advocated for a less restrictive approach to AI to foster innovation and secure a leading position in the global AI race, he affirmed that the Trump administration maintains a "pro-regulation" stance on cryptocurrency. The goal, he noted, is to establish clear rules that will support the growth of the crypto 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 remarked.