President-elect Donald Trump’s recent appointment of David Sachs as the new “AI and crypto czar” is how the federal government plans to approach artificial intelligence and its role in the workplace. suggests a major change. A Big Tech veteran, Silicon Valley insider, and vocal supporter of deregulation, Sachs will oversee a major transformation in how AI is regulated and integrated across industries. It will be. There will be a focus on innovation and industry collaboration, and for employers, this means a constant stream of new workplace AI tools that need to be tracked and integrated. However, light regulation comes with potential challenges, making it important for businesses to prepare for changing conditions.
what happened
The Dec. 5 announcement of the nation’s first AI czar is aimed at shaping federal policy toward emerging technologies. The part-time advisory position, which bypasses Senate confirmation and traditional oversight mechanisms, puts Sachs at the center of the AI field. Sachs will be tasked with working with other tech allies in the administration, including Elon Musk, to create a legal framework that minimizes regulation while fostering innovation and private sector growth. It will be.
In his new role, Sachs will also chair the President’s Council of Advisors on Science and Technology (PCAST), demonstrating his commitment to maintaining an open dialogue between policymakers and the tech industry. Although details are unclear, it is believed that he will have a great influence in shaping AI-related policies in business and employment settings.
saxophone background
David Sachs is no stranger to the world of technology and what’s in the national spotlight. Mr. Sachs, the co-founder of PayPal, has deep ties to some of Silicon Valley’s most prominent figures, including Mr. Musk and Peter Thiel. In recent years, Sachs has become a vocal critic of what he calls “Big Tech censorship” and overregulation. His podcast, All-In, has become a platform for conservative and libertarian views on technology, economics, and governance.
Sacks also brings practical experience with AI. This year, he launched Glue, an AI-powered work chat app that promises to streamline workplace communication. His approach to AI emphasizes open ecosystems and competition, a philosophy that aligns with the Trump administration’s broader deregulatory agenda.
What employers can expect
For employers, Sacks’ appointment signals a possible shift from the regulatory framework put in place during the Biden administration. Key areas for businesses to consider include:
Regulatory rollback
The appointment adds another nail in the coffin to President Biden’s executive order on AI, which advanced safeguards against bias and workplace fairness. Employers can expect restrictions to ease over the next four years. However, this increases the burden on plaintiffs’ lawyers to self-regulate and ensure compliance with existing anti-discrimination and labor laws as they aggressively pursue potential violations. This further demonstrates the need for companies to develop AI governance systems and policies.
State level activities
States like California and New York will likely be the next to develop strict AI regulations, as federal oversight may loosen. These two states, as well as Colorado and Illinois, are implementing rules requiring transparency, disclosure, and possible accommodations for the use of AI in the workplace (which may already be mandated by the ADA) in employment. We plan to work on formulating it. This could lead to a patchwork of rules, requiring employers in multiple states to adhere to the most stringent standards.
Increased use of AI in surveillance
The Trump administration has signaled that it will leverage AI to combat waste, fraud, and abuse in entitlement programs, particularly through the DOGE initiative. This indicates widespread acceptance of the role of AI in governance, which could also extend to monitoring labor compliance. Agencies like the EEOC are expected to develop ways to use predictive analytics and AI to focus investigative resources on specific allegations.
focus on innovation
Policies under Sachs are expected to prioritize innovation over regulation, with a focus on minimizing barriers to open source AI development and startups. This has the potential to rapidly introduce new AI tools, but also increases risks around data privacy and ethical use.
Practical suggestions for business
To address the evolving AI landscape, employers should consider taking the following steps.
Be careful when deploying new AI systems: Understand the questions you should ask your AI vendor when deploying an AI system. Audit existing AI tools: Review all AI-driven tools currently in use, from recruiting algorithms to productivity trackers. Ensure that you comply with federal anti-discrimination laws, are non-biased, and comply with existing employee monitoring and privacy laws. Get AI governance in place: AI governance will be a must-have on your 2025 checklist. Develop and implement risk management systems to protect your organization from flawed AI systems. In the era of self-governance, it is important to configure systems to align with business objectives, comply with regulations, and operate ethically. Stay ahead of state regulations: States will lead the way in regulating AI. Monitor developments in key states that are moving forward with their own AI laws. Invest in training: Provide AI ethics and compliance training to HR teams and managers. Understanding the strengths and limitations of AI tools is essential to using them responsibly. Be transparent: Be upfront with employees about how AI is being used in the workplace, including in hiring, performance reviews, and daily tasks. Transparency builds trust and reduces the risk of legal challenges. Prepare for rapid change: The deregulatory approach under Sacks could lead to rapid advances in AI applications. Businesses must be prepared to adopt new tools while complying with evolving standards. Collaborate with legal advisors: Work with legal advisors specializing in AI and employment law to navigate the complexities of policy changes and ensure compliance.
