The FAA bans passenger airlines from operating over the continental US at speeds above the sound barrier. A technology that's legally constrained from advancing (in least in the world's largest market) is probably not a good choice of example.
I do agree with the general point, as opposed to your specific example, that technology doesn't necessarily advance exponentially. There is also at least some potential that an analogous regulatory regime could slow progress in AI (the recent executive order from the Biden administration requires reporting of models trained above a certain size, but at present it's only a reporting requirement; I haven't followed the recent European legislation).
More generally, though, technological progress tends to follow S curves, which go through an exponential phase which later stalls out (the next phase of progress being a new S curve). And the best model for this process is Wright's Law (which gives a cost decline per unit produced). If we apply Wright's Law to the progress of AI, it suggests that we've got a significant length left of the upward exponential phase of the S here, but that depends to some extent on how profitable modern AI tools will turn out to be.