This isn't even about competency really as the cost of AI is being artificially depressed through all of these businesses running at a loss. It might be insane to stick in a blender with US labor statistics. Hopefully not the kind the WH uses?

There are a lot of different things falling under the umbrella of AI. You're right to be skeptical of an algorithm's ability to estimate another algorithm's ability in practice. They're testing how well the buzzword tech can move the needle on numbers the fed obsesses over. Really pigeonholing the tech into profitability. Best uses of this tech will be in balancing electricity flows through the country, with inputs including population + industry usage, weather patterns & other renewable energy variables (these are very much a social good but you can already hear capital hissing at the thought). Humans already operate many cybernetic systems that turn on volition, with inputs adjusted to make them exploitative. Streamlining them is going to rip the balls right off for sure. As I often quote Michael Parenti by recently, "You're stupid if you think they're stupid," it goes nicely with "the purpose of a system is what it does."