This is a bad counterpoint to "more regulation makes business harder". No regulation at all is probably the hardest business environment possible, but too much regulation is bad too.

Quantity of regulation isn't the point. It is quality. The right regulations are the right regulations. They mitigate risks and can encourage innovation. 'too much/too little' arguments are almost universally wrong.

There is no AI regulation in the US and look at where we are, everyone depends on it, SOTA models are doing CSAM and porn deepfakes, and there's no regulation in the US to prevent this from happening

nor there is regulation to inform a user something uses AI or the dangers of being dependent on this magical oracle.