Consider the relatively recent societal normalization of same-sex relationships and the recreational use of marijuana. Over the decades, those ideas slowly progressed from being both immoral and illegal, to moral but still illegal, and finally to both moral and legal. But in order for any of that to happen, there had to be a counterculture that was able to experiment and eventually demonstrate to the world that morality could change over time. To the extent that AI surveillance chills this sort of experimentation in public or in private, social progress becomes impossible.
The scariest thing about our surveillance culture is how we internalize it and change our behaviour without even realizing it. The other scariest thing is that it stops us talking to one another, so that we can never organize to improve the dystopia we live in.
Snowden told everybody in 2013 that they already possessed a panopticon. Imagine how much better it is now. And just in time for fascism!