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

CNBC reported Thursday that billionaire hedge fund manager Paul Tudor Jones believes the United States has already fallen behind on AI regulation and must move decisively to close the gap.

“We need to do it tomorrow,” Jones told CNBC’s Squawk Box. “We’re late already. We should have already done it.”

Industry Sentiment on AI Regulation Has Shifted Fast

Jones pointed to a notable change in how AI professionals now view oversight. At a recent gathering of AI experts and model developers, he said roughly 80% of attendees backed some form of regulation. That figure stood at just 20% approximately one year ago.

One company leader present reportedly expressed surprise that the industry remained unregulated. Jones framed the shift as a sign that even those building the technology now see guardrails as necessary.

He also stressed the need for governments to watermark AI-generated content. The goal is to give consumers and platforms a reliable method to separate authentic material from deepfakes. Without that infrastructure, Jones argued, the risks will compound as the technology advances.

Despite his concerns about governance, Jones confirmed he has recently added AI stocks to his portfolio, signaling continued confidence in the sector’s long-term trajectory.

A Patchwork of Rules Has Filled the Federal Void

The U.S. currently lacks a unified federal framework for AI oversight. The European Union passed its landmark AI Act in 2024, establishing tiered obligations based on risk. Several American states have introduced or enacted their own rules, though most focus narrowly on child protection.

In March 2026, the White House released a nationwide AI policy framework, offering guiding principles without binding enforcement mechanisms. Critics argue the document falls short of the structural accountability the moment demands.

US-China AI Rivalry Adds Urgency to the Debate

Jones also addressed the intensifying competition between Washington and Beijing over AI supremacy. Rather than framing the rivalry purely as a threat, he called for direct dialogue on safety between the two powers.

He said he does not believe China seeks outright confrontation, adding that coordinated discussion on AI risks would benefit both nations and their citizens. CNBC noted that The Wall Street Journal reported this week that both governments are weighing formal AI talks at an anticipated meeting between President Trump and Chinese President Xi Jinping.

Jones’s comments arrive as policymakers face mounting pressure to act before the technology outpaces any realistic regulatory response.

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