'jail time' for AI could be removing access to the Internet, and restricting interactions with human users. That would put the AI behind other AIs that can stay current (through ongoing training with new data etc.), offer services to humans and gain market share. No pain for the convicted AI, but economic disadvantage that might be difficult to make up for upon release.
My lawyer friend says families of victims e.g. of murder, feel bad waking up in the morning knowing that the person who did the act is still out and about, and that it affects their productivity as they keep thinking about it. It helps when the perp is caught and sentenced.