My story is set in the near future and has a government that is orchestrated by a super computer that has access to untold zetabytes of data. It utilizes people and automation to utilize their respective comparative advantages. (i.e. humans have better spatial awareness, automation has better precision, ect). The AI government in my story has a close analog with "The Hive" -- which is a Human / Robot collaboration project by Autodesk and others to solve a highly complex design task.
Instead of a design task, my AI government will manage fiscal objectives like tax rates, money supply as well as infrastructure objectives like power grids and road maintenance. It does so by iterating over all possibilities in the solution space and choosing the solution that fits best given its cost function (which may have some human involvement). It's all done dynamically, moment to moment, via its huge data integration platforms.
Recall that most sci-fi movies very rarely have 100% altruistic aliens, because the plot would be void of suspense / conflict if the aliens came and solved all of our problems. Similarly, I don't want my AI government to solve all of humanity's problems and make my story too lacking in the plot department.
Which kind of latent threats/ alarming developments would there be with an AI government? (in keeping with the tags of the question)
When the AI government makes a decision, its decision making process is driven by billions of variables, making the logic too abstract for humans (and readers) to identify with. Even if humans have some way to de-abstract the logic, could we ever be confident the AI government was not hiding something?
Note: Please try not to be overly analytical on the premise, in the interest of simplicity, I just put down the minimal so that the question would make sense.