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I made a first prototype here: https://github.com/bluebbberry/MyceliumWebServer. Its recommends songs to the users. You can see it here: https://techhub.social/@myceliumweb and try it out by posting to #babyfungus on Mastodon.
You can do AI in an ethical way by making it more decentralized. The idea behind the mycelial web is to realize it based on volunteer computing, meaning that everybody can contribute computing power. And then I can say, for example: use my models, which was trained with all these other models, on this Amazon alternative to recommend me stuff. And the AI model was trained on my PC and runs on my PC (just wasn’t trained solely with my computing power or my data alone).
I think a link between your idea and mine can be found in the work of writer Evgeny Morozov (https://mondediplo.com/2024/08/07ai-cold-war), who did some interesting research of alternative forms of how the internet could have developed including a project by the chilean government called “Cybersyn” (in his podcast “The Santiago Boys”, https://open.spotify.com/show/7xlRxnooUnl48JVo726YXn). Although it was pretty centralized and not exactly Amazon, more like a socialist distribution system between industries. Well, its a very interesting podcast anyways …