This is absolutely insane. If they want to know where potholes are, throw up a basic site with a map for reporting, people are very motivated by issues on the roads. Or just ask Google to share Waze data - many potholes on major roads are tagged there. "Feeding AI through cameras" makes so little sense it's laughable, in the most depressing way.
As you've pointed out, I might let it slide if issues were actually being addressed, but they aren't. There are potholes that have been sitting in major city roads where I live for years, and nearly all the street markings around the whole city have completely eroded - junctions are becoming scarier as nobody knows what lane to be in. But I'm sure throwing money at AI can solve these problems.