Silicon Valley is not known for its co-operation with regulators. They hold veiled contempt for those who require explanation of concepts. They firmly believe any regulation of a technology will result in failure. They are unaware that China effectively controls emerging technologies.
Ultimately, there could be over-regulation by those who do not have any stake in the technology. Judiciary force-fits the technology into regulatory structures.
European Union has adopted a wide-spread approach to regulate AI. French president Macron is its harshest critic. Instead of promoting the technology, the approach is to protect the consumers of this technology. EU may lag behind in AI and could remain a laggard for a long time.
NYT has sued OpenAI and Microsoft in the US for copyright violation, since the training data was used either without permission, payment or acknowledgement.
AI companies will have to scale back its profit sources. The companies will have to enter into agreements with publishers. This indicates that their case is lacks strong legal grounds. Judges may write restrictions on AI use and training.
Innovation in AI is happening in the USA. US itself may have a comprehensive regulatory approach. This is a classic but defining clash.