Taken literally, in the light of existing applications of ML and their flaws, it sounds like a ridiculous idea.
But the most functional countries are those ruled by code, not by human leaders w strong personal power. We call it "laws" and "institutions".
Having formal decision systems (i.e. AI), that are transparent, possibly interpreted by humans, frequently patched, may be the future of governance. We've been using a rather immature version of this very system for judicial decisions. Extending it to economic policy isn't crazy.
Replacing personal human power with formal rules that are known to all and for which there is an update mechanism meant to represent the will of the people is the essence of the rule of law.
And the rule of law is the better government system so far.
AI is just an extension.
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