This is the elite wet dream, yes. Replace all pesky humans with machines

I'm proposing that the elite be replaced with machines. I'm not saying it's easy, nor necessarily even possible, certainly not at the current level of technological and societal development.

Except it does work, if you have a unbiased media

There's no such thing as truly unbiased media, it's nearly impossible. Or are you proposing banning all media that isn't state media? Private media will always have an agenda. Often so will state media though, and that can easily become even more dangerous.

and an educated population.

Doesn't work. Or are you going to force everyone into poli sci majors? Majority of Europe has free higher education and in most countries the far right has been on the rise again. Even plenty of educated people vote for those parties. Hell, I can tell you that many of the people IN those parties, at least in my country, have degrees one might consider relevant to good governance (history, law, etc) and yet they spew hate.

What if the Ai suggests things that are bad for the rulers of society?

The idea is that the AI has to be the ruler of society and nobody else can have power over it. It also involves developing perfect AI first. I did say it was a pipe dream, didn't I?

There will always be corrupt humans directing our systems, to stay rich and powerful.

It goes without saying that the existence of private property is part of that plan. The AI would decide who needs how much resources. The book you've named yourself after is kind of relevant, but the inner party still consisted of humans and they had ulterior motives. As O'brian himself said, the party's ultimate goal was nothing other than just the control itself. The AI would have to have an ultimate goal of maximum human happiness, freedom and longevity, as much as possible without giving people freedom to have power over others.

Which means we need less technology, less machines, less surveillance, to have a society where humans can feel free and happy.

Doesn't work either, unless society is fewer than 100 people or so. Above that we start developing these nasty things called hierarchies. Rulers and such. No human rulers can be allowed to exist if we want a truly just society. Impartial, completely neutral humans don't exist. Democracy doesn't work because voters can be swayed and BDFLs are just that, FL. They die and the next one might not be very B, but will be just as D if not moreso.

Always Sunny style episode title "Chat destroys the world"