Holy moly, they really trust the judgement by AI? it seems like they don't want to invest their time and effort to observe one by one, instead they use AI that sometime did positive false or inaccurate information.
Not that I agree with the strict regulations but you might be mistaking ai vs generative ai. AI is just a system or a technological tool that can be used to observe patterns to learn algorithms. It has existed from before and has helped a lot of us.
This is really a bad news, if US make this movement, then we can expect majority of other countries will follow the same footsteps.
US is not completely into crypto but also not completely out of it. Silver lining I guess is that they will now have clear rules.