why can't AI be that solution?

why use a nuclear bomb to drive a nail?

To further onto this, humans could technically simulate Turing machines themselves but they don't.

Efficiency and finding the right abstractions and tradeoffs is literally identical with making new capacities and capabilities. If all of your systems were truly "run by AI", we wouldn't have systems. Systems are systems because the AI uses well developed tools and protocols that humans have put together. It's a stable capacity.