By regulating AI or associating legal process with the development of AI, there is a real cost that may exceed or distract from the underlying lower technical cost. People could no longer work on AI for fun, you see. Big companies won't be hindered by this because they can pay the cost, but open source developers wanting to play by the rules would be unable to continue in many cases. If you have read the famous "we have no moat and neither does openai" piece, this regulation would be creating that moat to protect large companies. I take a similar view of what Sam Altman requested from the US (https://www.nytimes.com/2023/05/16/technology/openai-altman-...).

This situation is like cryptography in the early web. Some governments shut it down for domestic use and inadvertantly enabled weakness in their own infrastructure. Will governments hinder the development of AI in the same way?