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Remember how taxi medallions were worth millions and millions of dollars in NYC and Boston before uber? (1.2m was the peak per medallion in nyc. They dropped to like 35k at one point and are now around 140k.) Remember how uber got billions in VC money to fight the taxi industry lobbyists and effectively operates despite violating the systems that were in place for ages that prevented small independent operators from being taxis without having a bunch of seed money? Those billions of dollars let them win the legal fights and continue operating. You or I could never have challenged it.
That's the comparison I was making. If you regulate AI into the ground the only innovations and usage will come from big money interests, because they can eat the lawsuits. Individuals can't eat the lawsuits. The law only applies to the small fries, the big guys cheat and get away with it because there is no transparency and a whole lot of pinky swears.