The arbitrary absolutism of the original postulate is the first problem. AI, used or unsupervised inappropriately, is at potential risk of creating limited mass casualty events when placed in under-supervised control of real world objects and/or systems. Delegating management decisions to algorithms is inherently problematic and potentially dangerous, but not necessarily an existential threat unless something extremely stupid is allowed to happen on a large scale. With a guiding principle of human review in the decision loop before making large or risky changes, hopefully this will never happen.
"unless something extremely stupid is allowed to happen on a large scale"
Dear sir, I have some really bad news for you about humanity.