Paul Tudor Jones Warns U.S. Is Behind on AI Regulation

Billionaire hedge fund manager Paul Tudor Jones told CNBC Thursday that the United States is dangerously behind on AI regulation. He argued the country needed to act immediately. “We should have already done it,” Jones said on CNBC’s Squawk Box.

Jones Calls for Watermarking and Dialogue

Jones focused his concern on the unchecked spread of AI-generated content. He called on governments to require watermarking systems. Those systems would allow the public to distinguish authentic material from deepfakes. The urgency of his remarks stood in contrast to his investment posture. Jones separately told CNBC he had recently added to his AI stock holdings.

His comments reflect a notable shift in industry sentiment. At a recent gathering of AI developers and experts, Jones said roughly 80% of attendees backed formal regulation. That figure was just around 20% at a comparable event the previous year. One company leader in attendance reportedly expressed surprise that the sector remained unregulated.

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How the Regulatory Landscape Got Here

The United States has lagged behind other major economies on national AI governance. The European Union passed its landmark AI Act in 2024, establishing a tiered risk framework across member states. Several U.S. states have introduced their own measures, largely targeting child safety concerns. The White House released a broad national AI policy framework in March. However, no comprehensive federal legislation has cleared Congress.

Jones pointed to the U.S.-China technology rivalry as an additional reason for urgency. Both nations are racing to develop dominant AI models and strategies. The Wall Street Journal reported this week that Washington and Beijing are weighing formal AI discussions ahead of a potential meeting between President Trump and Chinese President Xi Jinping.

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Industry Pressure Builds on Washington

Jones struck a notably measured tone on the geopolitical dimension. He said he does not view China as seeking to destroy American interests. Instead, he advocated for structured safety dialogue between the two powers. He argued that shared risks from advanced AI give both sides an incentive to cooperate.

His comments arrive as leading AI developers face growing pressure from lawmakers and civil society groups to accept binding rules. The gap between technological progress and legal oversight has widened sharply in the past 18 months.

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