Another possibility is if ChatGPT or OpenAI start getting banned in other parts of the world we can see a big rally on AI projects on the blockchain, what do you think?
Blockchain is a database. A very clunky and inefficient one.
AI is a program that first of all requires processing power. Not storage space. It makes zero sense to put "AI on blockchain", it's just technobabble.
And Italy didn't ban AI - they banned a chatbot website because it wasn't complying with Italy's privacy laws. But you can still use GPT-4 and other AIs in Italy in their other forms.
Blockchain, decentralization, these two are overly abused words I guess.
By the way, OP, no one can ban AI, it's just impossible because AI is made by using of math, data science, programming languages. There are a lot of programming languages used for that purposes, including python, C++, Java. It worth to note that this programming languages can't be banned and even if you ban, you have to keep in mind that logic is similar for all of them because they are based on Math, finally it comes down to 0 and 1. There is simply no way to ban AI, it's unstoppable, especially if it comes with ability to takeover endless amount of information and develop its analyzing skills and abilities with superfast calculation.