The first step is to stop thinking of "the public" as a monolithic entity whose interests are pursued by the government, and instead recognize that control over things that have a major impact on the lives, welfare, freedom, and prosperity need to be things they can effectively control or opt-out of as individuals.

Regulatory intervention makes it harder, not easier, for individuals to take charge of these matters for themselves. You can bet that the first casualty of a regulatory regime for AI would be to suppress development of FOSS solutions that would eventually give people the maximal control and benefit from AI, and force them into dependence on third-party solutions offered by organizations that have influence over the regulatory regime itself.