Colorado and New York City have already adopted AI-specific liability regimes, and similar proposals are pending in legislatures nationwide. Over the past two years, states have raced to impose liability for specific harms generated by AI use. When they produce problematic results, AI systems can be tested, audited, and improved in ways people generally cannot. But the answer is not to build a separate body of AI-specific liability law that treats the technology itself as inherently suspect. Fear-driven AI-specific liability rules will not only blunt AI’s benefits, but also tilt those benefits toward society’s largest and wealthiest players.