We don't have true AI. We have expert systems. Algorithms designed to be very good at very specific tasks. Because these tasks can often be things that typically those we consider very intelligent in society typically do (math, calculations, statistics, etc) we consider the machine intelligent.

Though it isn't. It is constrained to the limits of the algorithm.

The important thing to remember is that it is not truly intelligent. It works within the confines of the algorithms as programmed by humans. The CORRUPT humans you are referring to impose their concepts upon the recipe that ends up being the algorithm.

Though unlike a human, an algorithm does not change its mind. So if there is something to exploit or something that ends up being a very bad idea, the algorithm now acting as the government will not be able to see it. Who changes it?

We don't have anything remotely close to true AI right now. We have a lot of expert systems. They are good at specific tasks, but they themselves are not good at things outside of that task.