Paul Tudor Jones says U.S. is late to regulating AI: 'We should have already done it'
Paul Tudor Jones, a man who made his fortune by being early to market moves, has finally noticed that the US is 'late' to regulating AI. Speaking to CNBC, the billionaire hedge fund manager — yes, the same industry that has been quietly using AI to front-run trades and optimize high-frequency strategies for years — graciously offered his wisdom: watermarking. Because the deepfake arms race, which is already producing political propaganda and financial fraud, will surely be defeated by a digital stamp that any halfway competent adversary can crop, re-encode, or simply ignore. We're late, says the man who shorted Black Monday, and his solution is a metadata tag.
This is the same regulatory gap that lawmakers have been dithering over while five different AI bills languish in committee. But now a macro trader has spoken, so surely the lobbying dollars from every lab in Silicon Valley will evaporate and Congress will act with the speed of a hedge fund executing a trade. Jones's call for watermarking is the regulatory equivalent of bringing a water pistol to a wildfire — technically a response, catastrophically insufficient. And let's not forget that his own firm, Tudor Investment Corporation, likely relies on AI models that are black-box and unregulated.
So here we are: a billionaire who trades on information asymmetry tells us that deepfakes are a problem, and his solution is a mark that can be removed in Photoshop. The US is late, yes, but being late implies eventual arrival. At this rate, we'll arrive after the deepfakes have already swung an election or two. But at least Paul Tudor Jones got his CNBC hit. That's the real win.