Billionaire hedge fund manager Paul Tudor Jones has issued a stark warning to lawmakers and the public, stating that the United States is dangerously behind in the race to regulate artificial intelligence (AI) and that the window for proactive oversight is closing rapidly. “We need to do it tomorrow. We’re late already. We should have already done it,” Jones said in an interview with CNBC.
Deepfakes Problem
Jones emphasized that as AI technology grows more sophisticated, there is an urgent need to distinguish between human-generated content and AI-created “deepfakes.” He argued that the government must mandate digital watermarking for all AI-generated media to maintain public trust and security.
Despite his concerns about the lack of rules, Jones remains optimistic about the technology’s financial potential. During the same interview, he revealed that he has recently increased his investments in AI stocks, illustrating the complex “double-edged sword” nature of the industry.
Shift in Tech Sentiment
Jones noted a massive shift in how the tech world views regulation. He recalled a recent conference where 80% of AI experts and model makers supported government oversight, a significant jump from just 20% a year ago. According to Jones, even leaders of major AI companies are puzzled by the absence of a legal framework. He said one CEO reportedly told him he was “surprised” that the industry remained unregulated given its rapid expansion.
US-Europe Regulation Rivalry
Jones also discussed the AI Act passed in the European Union (EU). The region adopted its landmark AI Act in 2024, while the White House has introduced policy frameworks, but the US still lacks a comprehensive federal law. Jones highlighted this legislative gap at a time when China is engaged in a rivalry to dominate the AI landscape.
However, Jones suggested that the two superpowers might find common ground on safety. With reports that President Donald Trump and China’s Xi Jinping may discuss AI at an upcoming summit, Jones advocated for open communication. “Everyone wants what’s best for their people. We should be having a dialogue with them about AI safety,” Jones said, pointing out that he does not believe China wants to “wipe out” the US.
