No, we end up with crappy systems because people are optimizing to save money over providing a good service. OP has simply replaced the traditional room full of clerks applying policy rigorously with a baysian algorithm and now AI. The management and oversight is still in place, and that is what makes a system that doesn't suck. To make it suck and save money, you remove access to that oversight or just remove it all together. And falling down that slippery slope is not inevitable, even if it sometimes seems like it is.