This article seems like a pretty dishonest summary of a legal advisory that begins by saying:

> AI systems are at the forefront of the technology industry, and hold great potential to achieve scientific breakthroughs, boost economic growth, and benefit consumers. As home to the world’s leading technology companies and many of the most compelling recent developments in AI, California has a vested interest in the development and growth of AI tools. The AGO encourages the responsible use of AI in ways that are safe, ethical, and consistent with human dignity to help solve urgent challenges, increase efficiencies, and unlock access to information—consistent with state and federal law.

It's impossible to understand this as a statement that AI companies are a "legal clusterfuck" or "may be entirely based around criminal activity".