He's an ambitious person. And AI enables a degree of surveillance state that we find it difficult to even begin to imagine. All the logistical difficulties of something like Orwell's 1984, of the Stasi having 1/3 of Berlin on the books as informants against the other 2/3, go away completely. We have more cameras than ever. Every person gets to enjoy the kind of focus that went into tracking down Luigi. DOGE has exfiltrated all our sensitive databases to servers that they control; Every 'Chinese Wall' intended to ensure some kind of separation of concerns has been broken down, almost certainly including various formally classified intelligence-gathering campaigns. You can't necessarily stuff that genie back in the bottle. If somebody wanted to be... not president, but authoritarian leader of a post-democracy, Musk would be well positioned technologically.
It wouldn't be inconceivable to set up an AI to do all the same sort of fraud & identity theft attacks against an individual that for-profit blackhats do, or that a Kiwifarms harassment campaign can do, without much of any actual staffing. Only DOGE starts out with your social security number, your tax records, your drivers' license, license plate reader records, web history, everything. That individual could be a Wall Street Journal editor who wrote something Musk dislikes, or ten thousand Redditors who are making fun of Teslas.