August 5, 2025
5 min read
@CryptoRank_io
David Sachs says AI layoffs are exaggerated; Microsoft highlights jobs vulnerable to automation amid crypto sector vacancy decline.
AI Layoff Risks Overstated, but Automation Threatens Certain Jobs
White House Cryptocurrency and Artificial Intelligence Adviser David Sachs has stated that predictions of mass layoffs due to AI are exaggerated. He emphasized that AI technology still requires human oversight to create real business value. Sachs explained on the social network X (formerly Twitter) that AI acts as a “middle-man” in workflows, while key decisions and management remain in human hands. Even the most advanced AI models need human review and guidance. This statement followed a Microsoft Research study identifying jobs most susceptible to AI-driven automation. The study highlighted roles such as journalists, analysts, and technical writers—positions heavily involved in the cryptocurrency space—as particularly vulnerable. Microsoft researchers analyzed 200,000 anonymous Bing Copilot chats and found AI is primarily used for data collection, writing, and consulting. The highest automation risks were in reporting and copywriting, with AI applicability scores between 0.38 and 0.39. Market analysts and data scientists had slightly lower scores, ranging from 0.35 to 0.36. These scores reflect the likelihood that AI can effectively perform these tasks compared to humans. The issue is also relevant to the crypto industry. In July 2025, experts noted a significant decrease in job vacancies within the sector. This decline coincided with a US Department of Labor report revealing only 73,000 jobs were created nationwide, falling short of the 100,000 jobs forecasted by Dow Jones. Sachs also referenced former Coinbase CTO Balaji Srinivasan, who argued that AI is not taking jobs from humans but replacing earlier generations of AI models.“Today's AI is not truly agentic. It can perform more tasks, but it does not act completely on its own,” Srinivasan said.He pointed out that competition is primarily between AI models themselves. For example, Midjourney has displaced Stable Diffusion in image generation, and GPT-4 has replaced GPT-3 in large language models. These developments support Sachs’s view that human control remains essential for effective AI use. Read the article at Coinpaper