This is simpler than you think. AI is a bubble. It is a giant bubble.

Many people, including many government workers, are getting rich right now by riding the bubble. They and their funders have zero interest in worrying about what will happen when it bursts.

(Also, AI is vaporware. It can't replace workers in huge numbers. So nobody serious is actually worried about that... Of course there are some occupations that have shifted, but far fewer than you would expect.)

government is dependant, because they want the hallucinating mass surveillance that palantir does, and also its a useful propaganda tool.