That is not true. It bans regulation at the state and local level, not at the federal level.
Abortion: "Let the states regulate! States' rights! Small government! (Because we know we'll get our way in a lot of them.)"
AI: "Don't let the states regulate! All hail the Feds! (Because we know we won't get our way if they do.)"
Like, say, the development of nuclear weapons. Wouldn't that have been awfull for the US people if, for instance, say the state of Nevada or the Marshall Islands could have banned nuclear tests..? /s