Ex-Trump AI czar warns heavy regulations could stifle U.S. innovation and embed bias
David Sacks, former White House Crypto and AI czar under the Trump administration, has been vocal about AI oversight. He recently advocated for a lighter approach to keep the U.S. competitive in the global AI race, criticising heavy-handed regulations from the Biden administration and blue states. Meanwhile, California has strengthened its online protections for children with the new Senate Bill 243, addressing AI risks and requiring age verification measures and self-harm prevention protocols.
Sacks believes that excessive AI regulations could suppress innovation and embed political bias. He argues that the U.S. should focus on fostering innovation while balancing privacy and power concerns. Starting in 2026, AI companion chatbot operators will be required to file yearly reports detailing their efforts to identify and respond to users expressing suicidal thoughts.
The new California law, Senate Bill 243, approved by Governor Gavin Newsom, mandates tougher penalties for illegal deepfakes and requires warning labels for social media and AI tools. It also enforces strict protocols for self-harm and suicide prevention. Sacks, who left his post under the Trump news administration, previously warned about AI's greatest danger being mass surveillance and information control, not a robot uprising. He described the Trump administration's approach to crypto regulation as 'pro-regulation', aiming for clear, supportive rules.
The debate over AI and crypto regulation in the U.S. continues to shape the future of technology policy. While Sacks advocates for a balanced approach, California has taken proactive measures to protect its citizens, particularly children, from AI-related risks. The U.S. must navigate this complex landscape to ensure innovation thrives while safeguarding privacy and public trust.
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