As I noted, that only works with a limited set of AI companies.
They need to be in the juristiction of whatever government that decide to enforce the laws, if not, there is very little that can be done.
Then, besides needing to be in the right juristiction, the punnishment needs to be large enough that you can’t just budget it away.
Then any country doing this will know that they are deliberately getting rid of an important sector, while other countries will continue running their sectors.
I will never forget when I had to help a coworker with her laptop, she had long nails that had worn grooves in her keyboard keys.
She typed on her nails, the sound it made was terrible.