1. There is already a (terrible) precedent for making math illegal with encryption

2. What people really want to regulate is the use, and (my observation / paraphrase) it's really about how data is collected and aggregated, and what kind of data is used as the basis for automated decisions. The challenge is that this all gets bundled as "AI" and pushed by people that don't understand the underlying science, so there is a real danger I believe of accidentally outlawing some math, simply due to ignorance.

I think part of the solution is calling out nontechnical "AI ethics/fairness/bias/trust etc" people that don't know what they are talking about but are pushing policy in response to their own misunderstanding of what modern "AI" is.

Incorrect. There was AI before statistical machine learning.

> Are we really going to make [AI] illegal?

No. The question above is about the uses of AI, not the least of which includes protected rights at a national level as well as international treaties regarding warfare and human rights.