Why? An AI when told "follow local labor laws" is actually going to do it perfectly. Whereas those boards of executives are very happy not doing it.

A workers co-op owned company headed by an AI decisioning board would be able to maintain constant, real time feedback and coordination with all workers, and would be faster and more maneuverable then human headed companies.

Well, perhaps the AI could itself be controlled by the employees to some extent via a democratic decision-making process, i.e. voting?

Imagine having to go to the DMV to reset your Twitter password and realize that's the opposite of a world controlled by AI.