Sacks dismisses AI-driven layoff panic
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Moneycontrol09-12-2025, 14:14

David Sacks: AI Not Causing Layoffs; Human Judgment Still Vital

  • David Sacks, Trump's former AI czar, states recent tech layoffs are not primarily driven by AI, challenging fears of mass job displacement.
  • Sacks argues AI models still require human judgment, prompting, and verification, making many tasks irreplaceable by current AI technology.
  • A November 2025 Goldman Sachs survey supports this, showing only 11% of companies use AI as a reason for layoffs; most use it for productivity.
  • Major companies like Amazon attribute layoffs to reorganizations for agility, not AI-driven automation.
  • Sacks believes AI will reshape work by creating new roles like prompt-engineering and verification, rather than causing widespread unemployment.

Why It Matters: It offers a counter-narrative to fears of AI-driven job displacement.

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