Sorry to interrupt the pedantry about whether a specific entity counts as a state, I'd like to submit the notion that maybe the argument shouldn't be "is a state entity" but rather "is an entity that has some form of authority over my livelihood that is cornering me into a mode of constant surveillance which I do not consent to."
The obvious answer is to leave the organization, but ultimately one shouldn't have to end their employment in order to be free of undue/unjust AI surveillance.
Yes, this. That's part of my assertion that this is an argument in bad-faith: focusing on irrelevant details in order to derail an argument.