at some point, government analysts will construct a platform that gets lots of data (including both public and private data) shoveled in and produces actionable insights. For those who aren't current, "actionable" means, in the form of, "do this", or "think about doing that".
Of course, this system will still be constructed according to the biases and fears of real humans. Most people wouldn't call it an "AI government" because there's already an elected government calling the shots ... to a certain extent.