For instance, where do we widen a road? Absolutely an algorithmic problem. But I suspect sometimes these types of decisions have more to do with contributions, political favors, relations, etc.
Solving even part of this type of friction in society would go a long way toward improving life for the general population.
Bring on the A.I. I'd rather be governed by a machine than a party boss and a lobbyist any day.
Not to the people living on either side of it who stand to lose their homes. "Computer says yes" would be a political nightmare.
As long as you have people making the decisions you can have the comforting illusion that it may be possible to make them change their minds.
Replace the people with an AI and the comforting illusion disappears.
You'll have people taking to the streets with pitchforks to protest against tyranny in no time - even if the AI is much better at making intelligent decisions.
People's needs need to be taken into account, yes, that is what it is all about in the end.
But a few people's inconvenience or greed outweighing the general progress is not a long term formula for successful society.