Billionaire hedge fund manager Paul Tudor Jones sends a warning signal on AI; says: We are already late in ...

Paul Tudor Jones , the billionaire hedge fund manager, has issued a sharp warning, telling lawmakers and the public that the US is dangerously behind in the race to regulate artificial intelligence (AI), and that the window for proactive oversight is closing fast.

“We need to do it tomorrow. We’re late already. We should have already done it,” Jones said in an interview with CNBC.


Jones highlights ‘ deepfakes problem’


Jones highlighted that as AI technology becomes more sophisticated, there is an urgent need to distinguish between human-generated content and AI-created “deepfakes”. He argued that the government must mandate digital watermarking for all AI-generated media to maintain public trust and security.

Despite his concerns about the lack of rules, Jones remains bullish on the technology’s financial potential. During the same interview, he revealed that he has recently increased his own investments in AI stocks, illustrating the complex “double-edged sword” nature of the industry.

Jones noted a massive shift in how the tech world views regulation. He recalled a recent conference where 80% of AI experts and model makers supported government oversight, which is a significant jump from just 20% a year ago.

According to Jones, even the leaders of major AI companies are puzzled by the lack of a legal framework. He said that one CEO reportedly told him he was “surprised” that the industry remained unregulated given its rapid expansion.


US-Europe regulation rivalry

Jones also talked about the AI act passed in the European Union (EU). The region passed its landmark AI Act in 2024 and the White House has introduced policy frameworks, which essentially means that the US currently lacks a comprehensive federal law. Jones highlighted this legislative gap – at a time when China is engaged in a rivalry to dominate the AI landscape.

However, Jones suggested that the two superpowers might find common ground on safety. With reports that President Donald Trump and China’s Xi Jinping may discuss AI at an upcoming summit, Jones advocated for open communication.

“Everyone wants what’s best for their people. We should be having a dialogue with them about AI safety," Jones said, pointing out that he doesn’t believe China wants to “wipe out” the US.