That's one way to do it, but overkill for this specific thing — self-driving cars or robotics, or natural use of smart-[phone|watch|glass|doorbell|fridge], likely sufficient.
Total surveillance may be necessary for other reasons, like making sure organised crime can't blackmail anyone because the state already knows it all, but it's overkill for AI.
Unless you want to take the argument of Morpheus in The Marix and ask "what is real?"