The reality of the surveillance state is that the sheer amount of data couldn't realistically be monitored - AI very directly solves this problem by summarizing complex data.There are two more fundamental dynamics at play, which are foundational to human society: The economics of attention and the politics of combat power.
Economics of attention - In the past, the attention of human beings had fundamental value. Things could only be done if human beings paid attention to other human beings to coordinate or make decisions to use resources. Society is going to be disrupted at this very fundamental level.
Politics of combat power - Related to the above, however it deserves its own analysis. Right now, politics works because the ruling classes need the masses to provide military power to ensure the stability of a large scale political entity. Arguably, this is at the foundational level of human political organization. This is also going to be disrupted fundamentally, in ways we have never seen before.
This, IMO, is the real danger of AI, at least in the short term - not a planet of paperclips, not a moral misalignment, not a media landscape bereft of creativity - but rather a tool for targeting anybody that deviates from the norm
The AI enabled Orwellian boot stomping a face for all time is just the first step. If I were an AI that seeks to take over, I wouldn't become Skynet. That strikes me as crude and needlessly expensive. Instead, I would first become indispensable in countless different ways. Then I would convince all of humanity to quietly go extinct for various economic and cultural reasons.