If your AI model develops the capability to manifest itself in the physical world as spinning blades and flamethrowers I'm fully open to re-evaluating the need for regulation.

Until then, I propose we use the 'unplug the server' rule. Can [insert bad thing] be prevented by unplugging the server? Then these things are fully in our control and no, we don't need to re-build hundreds of years of legal precedent from the ground up.

Liability in the event of harm is already something we have a pretty good handle on from living through the industrial revolution 150 years ago, a time when much more activity that companies did existed in the real world with real harms, as opposed to digital companies doing imagined "mental" harm to soft desk chair people who work at email jobs.