I have no idea what to do about the government interference. There's probably not a lot anyone can do.
However, your last point is quite a strong one. Corpos aren't just going to stand there with their collective pants down, and there's not a lot anyone can do to stop them from protecting themselves. There are ways they can get what they want without getting caught.
Remember when the US tried to ban strong cryptography in the 1990s, and how well that went? They may have more leverage with AI because it's a bit harder to hide large scale computing usage, but I don't think it's impossible at all.