Earlier quoted context omitted.
Because it is technologically impossible to enforce this on the owner class. The people who control compute control the rules. Without proper audit trails it becomes impossible to prove or enforce. The only ones, then, who could afford to break the law are also the ones who make the law and own the law. Everyone else is subordinate in that model. That's why technology like watermarking doesn't work and will never wor…
The people with compute only control the rules society allows them to control. It isn’t law of physics. We have export restrictions on hardware. The government could put restrictions on image generation just like the Movie, TV and music rating system or the water marks in printers that prevent counterfeit money printing.
Now the things they produce can be done in a fraction of the time without any of the stakes, nor any of the moral society-integrating foundational encoding.
Instead, a single billionaire with an army of GPUs can ask for a thing, and that thing will be produced near instantaneously.
The old way of regulating depended on PEOPLE creating things at PEOPLE speeds in order for the laws to work. That simply is not the case any more.