It's common for businesses to abandon markets with burdensome regulation, I think your perspective may being distorted by software where there is little cause because regulation of software is uncommon. If you look to any highly regulated product like vehicles or medical devices products are often market specific (food too, but there are additional reasons there). But even online it's far from unheard of: post GDPR many US media outlets simply ban Europe entirely, and the requirements there seem far less burdensome than making generative AI accurately and specifically attribute their 'sources'.
Depending on the specifics someone might bolt on an attribution network but the results will frequently be nonsense. A tool like that might be somewhat useful on its own (since it could attribute non-AI output too), if its limitations were understood but essentially it would just be an internet search (which already exists, so presumably its not enough!). If it would satisfy the regulation it would make business sense to build it over blocking, but requiring it would also act as a moat that decreased competition in the field and as a result harm all of us.
Depending on the specifics someone might bolt on an attribution network but the results will frequently be nonsense. A tool like that might be somewhat useful on its own (since it could attribute non-AI output too), if its limitations were understood but essentially it would just be an internet search (which already exists, so presumably its not enough!). If it would satisfy the regulation it would make business sense to build it over blocking, but requiring it would also act as a moat that decreased competition in the field and as a result harm all of us.