Did some searching and found:

- https://hbr.org/1990/07/reengineering-work-dont-automate-obl... from 1997 about how you shouldn't automate busted processes

- https://hbr.org/2018/06/before-automating-your-companys-proc... from 2018 about same

- https://cs.stanford.edu/people/eroberts/cs201/projects/produ... about the productivity paradox with electricity in the early 1900s

- Review of "The Box" which talks about this situation w/r/t the shipping container and the re-engineering that had to happen

All of these focus on the effort to re-engineer based on a new technology, because you couldn't get the true benefits without doing so. That's slightly different than the thesis of OP, which is that bad behaviors are being papered over by AI. But I think the first step towards re-engineering is to accept that some papering over is occurring.