This is interesting and they make some good observations but I can't help but think the deck was stacked against them because they are trying to come up with a technical/business solution to what is fundamentally a political problem.
There was literally zero hope for success.
That’s probably the best you can do. Make it obvious to everyone including the bureaucracy what their externalities are doing, and either nudge them to go faster or divest some responsibilities to someone else.
It's great that they tried, though. But it strikes me that they seem to be 20 something students (not meant disparagingly) with no experience in this so perhaps lacked the insights and understanding of the pain points. It does seem that VCs were happy to fund based on an AI play, though ;)