The All-In Podcast@theallinpod
David Sacks: The AI Regulatory Frenzy at the State Level is “Very Concerning”
“Let me give you some stats on this.”
“All 50 states have introduced AI bills in 2025.”
“There's been over 1,000 bills in state legislatures.”
“118 AI laws have already been passed across the 50 states.”
“Everyone just seems to be motivated by the imperative to ‘do something’ on AI, even though no one's really sure what that something should be.”
“And there's no real agreement on what all these AI regulations are supposed to do, or what the risks are, so they're just making things up.”
“So you've got 50 different states each with their own reporting regime, which is going to be a trap for startups because they've all gotta figure this out about what they're supposed to report on, what the deadlines are, who to report to.”
“And if you wanna see where this is going, look at Colorado.”
“This has already been passed into law, SB 24-205, Consumer Protections for Artificial Intelligence. It bans something they call ‘algorithmic discrimination.’”
“Algorithmic discrimination is defined as unlawful differential treatment or disparate impact based on protected characteristics. So things like age, race, sex, disability.”
“If any of those factors drive an AI decision and it results in a disparate impact, then both the developer of the AI model and the deployer, which means the business that's using it, can be in violation of this law and they can be prosecuted by the Colorado Attorney General.”
“The only way that I see for model developers to comply with this law, is to build in a new DEI layer into the models, to basically somehow prevent models from giving outputs that might have a disparate impact on protected groups.”
“So we're back to Woke AI again, and I think that's the whole point.”
