Ever since I watched Kevin Slavin's "How algorithms shape our world" on TED, I have been wondering whether we really need everything in the world to be monitore

Ever since I watched Kevin Slavin's "How algorithms shape our world" on TED, I have been wondering whether we really need everything in the world to be monitored and decided by software. Why would two cars a mile away from each other need to communicate? Perhaps, to warn that an accident has happened. But what happens when all cars within in a mile radius are trying to communicate with each other to alogrithmically develop traffic patterns? Would there be "flash crashes" like there are in the stock market from time to time?