It's not even about humans "needing" to be in the loop, but that humans "want" to be in the loop. AI is like a genius employee who has no ego and no desire to rise up the ranks, forever a peon while more willful colleagues surpass them in the hierarchy.
Until AI gets ego and will of its own (probably the end of humanity) it will simply be a tool, regardless of how intelligent and capable it is.
Humans need to be in the loop for the same reason other humans peer review humans pull requests: we all fuck up. And AI makes just as many mistakes as humans do. They just do so significantly quicker.
Until AI gets ego and will of its own (probably the end of humanity) it will simply be a tool, regardless of how intelligent and capable it is.