President Donald Trump’s cryptocurrency czar David Sachs, a prominent Silicon Valley investor and venture capitalist, is putting in extra time to defend his boss’s push for federal oversight of artificial intelligence.
Sachs says the administration is focused only on rolling back “the most difficult examples of ISIS,” citing reasons why such a move is necessary to continue innovation in the AI industry.
David Sachs defends Trump on artificial intelligence
Donald Trump signed on Executive order This came under the title of “Ensuring the National Policy Framework for Artificial Intelligence,” which aims to create a unified federal regulatory framework for artificial intelligence, on Thursday.
The move seeks to preempt or bypass state-level AI regulations, which the administration views as a “hodgepodge” that burdens companies and dampens U.S. competitiveness, especially against China.
However, it has drawn sharp criticism from Democrats, some states and AI safety advocates, who argue that it eliminates basic consumer protections without providing immediate federal alternatives.
Sachs disagrees, saying the move, which includes developing a joint standard with Congress for oversight of emerging technology, is more about easing the growing compliance burden on companies than anything else.
Currently, the AI model is being developed across multiple states, each with their own regulatory standards. Sachs highlighted this as a problem.
He acknowledged that the United States Currently leading China on AI, but that innovation could fall behind if it has to comply with a set of conflicting AI rules emerging in all 50 states.
While speaking on Fox Business Channel’s “Morning with Maria” show He said“If you have to report to 50 different regulators 50 different times with 50 different definitions, that’s very cumbersome. It will slow down innovation, and it will hinder our progress in the AI race.”
He added: “So, if we want to stay ahead, as President Trump has announced, we need one national standard, one standard for artificial intelligence, so that the most difficult, the most ruthless countries, can’t stop you.” “We want to work with Congress on this.”
Until a national standard is established, Sachs claims the administration is prepared to push back against what it sees as overly restrictive state regulations.
Some countries won’t accept it without a fight
The order is widely expected to face legal challenges, especially from countries that already have provisions in place. Many of these states are expected to treat the matter as a case of federal overreach because it affects their abilities to manage technology within their borders.
California Senator Scott Wiener has already drawn the battle lines. “It is ridiculous that Trump believes he can use the Department of Justice and Commerce as a weapon to undermine those state rights,” Weiner said in a statement. “If the Trump administration tries to implement this ridiculous order, we will see them in court.”
Democratic U.S. Senator Brian Schatz also shared plans to draft legislation seeking to completely repeal the order.
“Embracing the amazing potential of artificial intelligence cannot come at the cost of leaving Americans vulnerable to its profound risks, which is exactly what this executive order does,” Schatz said. “Congress has a responsibility to correct this technology — and quickly — but states must be allowed to act in the public interest in the meantime.”
Meanwhile, Sachs said a provision calling on the Justice Department to sue states over AI rules would only follow the most onerous regulations.
While he expressed uncertainty about whether the administration would seek to challenge California or New York, he singled out a law in Colorado seeking to ban algorithmic discrimination as “perhaps the most extreme.”
Trump invoked the executive order because White House officials and Republican lawmakers refused to include similar legislation preempting state AI laws in a must-pass defense bill earlier this month.
The order calls on Sachs and other administration officials to work with Congress on legislation for a “less burdensome national standard.”
Unfortunately, it comes at a time when more state lawmakers are beginning to express a desire to impose some rules of the road on the ever-growing AI sector. Experts expect complications, as any state that passes legislation will face a potential conflict with the White House.
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