The AI, even the Paper Clips AI , will need some basic understanding of our world to make the clips. It needs to understand what paper clips are. It needs to understand what they are made from. It needs to understand the process of making paper clips. where to get the material for the paper clips. how to pay for that material. It has to think like us, or at least understand our thought process. It will need to know how many we need, what colors, sizes. Where to ship them.
We can't think of AI as a god. It won't suddenly know everything and understand what we want without our input. It will be limited by the resources given to it.
Even if we tell the Paper Clip AI - "Go make me some paper clips" do you really expect it to start calling banks to get the loan for the material, arrange shipment and unloading it. Will it also order the machines, call people to have them connected, hire workers to do it? If it does all of that will it also take care of sales? Marketing? Will it understand the supply and demand? To do all of this it needs to understand us, and our world. If at this point it decides that it makes sense to convert us to paper clips, then perhaps it's right and we deserve this.