I think a better notion is that of sunk cost. We have lost any approach that fights AI head-on. We should stop chasing this path and switch tactics, like changing online behaviours, education about privacy or, since developers love technical solutions, pursue technology solutions that leverage AI against this sort of cause. Example: what if we all switched to a morphing, deep-fake enabled visual representation? The better image identification got the more intense the msitakes would be.
As an 'arms race', the outcomes are very unbalanced.
See War Games (1983)
Unlike "Star Wars", increasing the computational complexity and costs of mass face surveillance is not a decades-to-soon monolith project.
That being said, ever since the very beginning of missile defense, it was always understood that the system would never be a permanently impenetrable shield. At best it might take a few years for adversaries to develop a new weapon to get through, but most likely a system would only be able to deal with a portion of targets. But the purpose of missile defense is not to raise the costs for the adversary - if now they have to launch 3 missiles to guarantee a hit where before they needed 1, you've essentially tripled their costs, not including the development of any new technology which could also be considerable. The fact is the Soviet Union did spend a substantial amount on developing technologies to defeat Star Wars, and even today China and Russia are spending significant resources developing technologies like hypersonic missiles to deal with the successor programs. So while the implication that the US purposely pursued technologies it knew would never work to trick the Soviet Union into following suit is not true, the US was trying to hurt its adversaries economically.
IMO, As a U.S. President, Reagan made the right decision to keep pushing, especially considering that he knew to some extent that the Soviets, their enemies, couldn't keep up forever financially. It's a really really cold calculation, but one that worked out.
As we stand now, I think that privacy is on the losing side here, unfortunately- at the end of the day, we're up against our own and other governments, some of which have quite authoritarian regimes and have absolutely zero problems with at the very least using force to acquire funding.
In WarGames, the only way to win is "not to play" when the playing field is level- this playing field is not level- to be able to beat this off, we need to be able to level the playing field somehow. Maybe I'm not smart enough or just can't see something, but I frankly don't know how that would be possible.
...holy cow, that's dark.
Is it a net win for humanity? Having stockpiles of nukes isn't. The space, science, athletic, and social welfare race is.
Competition drives progress. Hegemony leads to stagnation.