Then it should be factored into the profitability of starting in the AI sector. And just like for tax, there will be new external audit services that lower the costs of these overheads. In a way, these regulations create whole new kinds of industries

These kind of industries add no wealth. They reduce the productivity of the economy.

Productivity is a narrow metric for the success of society. Without these kinds of regulatory non-productive industries you would likely have fewer and worse social services, such as roads and the police. You would also be exposed to more risks in your daily life, such as pollutants and poisons. In the long term, these industries can allow for safer and more efficient societies.

It propably is, based on how many of those small, VC backed start-ups, complain about, I don't know, the burden of properly declaring taxes, paying social security for their properly registered employees and so on.

How many do complain about that?

In Germany? A lot, apparently a RSU or ESOP program is to hard to set-up, paying higher base salaries out of the question, so they complain about zheir inability to allow their "worker" participate on the company "success", mostly as a diversion from the fact that they just don't want to. Or taxes, something impossible to do for a new, academic / SW engineer led start-up to do in Germany. It is so bad, if you delieve people, that for that reason alone companies move abroad. All BS of course, given howany small businesses without the reasources of a VC backed start-up, actually manage to do so day in day out. The list goes on...

Okay, but how many is it? How many VP-backed ones complain vs small businesses that don't? How do we control for the small businesses that just have no voice and toil away quietly?

If you want total freedom, unhinged and unlimited capitalism, not a single thread of law applying tor pursuite of wealth, well, bad luck, because you don't even get this in the US. Admittedly so, the US are scaringly close.

You seem to be replying to a totally different point. Did you read my question? If so, is there a reason you're not answering it?