It could be regulated into oblivion, to the point that any commercial use of it (and even non-commercial publication of AI generated material) becomes a massive legal liability, despite the fact that AI tools like Stable Diffusion can not be taken away. It's not entirely unlikely that some countries will try to do this in the future, especially places with strong privacy and IP laws as well as equally strong laws protecting workers. Germany and France come to mind, which together could push the EU to come down hard on large AI services in particular. This could make the recently adopted EU AI Act look harmless by comparison.