It's really impossible for anyone to know where this is going to go. If you watched the Joe Rogan show with Elon Musk you could see even he was unsure and provided a possible good scenario and a possible bad scenario.
I would like to think that in your example the AI in question would see the patterns and provide better solutions rather than just handing down heavy penalties. Again, this comes down to how and where we choose to use AI. Does a magistrate get advise from an AI system that has reviewed the data before making a judgment? We appear to be happy to take medical advice from AI (IBM watson for example). Are we going to allow an AI system govern our rights?
More questions than answers at this point in time. Very concering to think that this isn't being discussed at high levels of government.
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