What if people could be enslaved but convinced them that they were not. Make them work 14 hour days for the benefit of some feudal lord, but give them the illusion that they were actually free. As I see it, the world today is basically one of feudalism, although veiled behind a complex system of debits and credits.
When I think about AI, I am constantly reminded of the book Anthem by Ayn Rand. Surveillance historically has been limited by the fact that there must be someone watching it, and a small group of people, can't closely watch everybody at the same time. With AI, that changes. The systems could theoretically be nearly omnipotent, tracking individuals every movements, facial expressions, conversations, ect. What sort of feudalism does that lead to?