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This paper argues that this framing is incomplete because AI systems also impose ontologies: they define what counts as an entity, relation, feature, harm, benefit, and valid form of evidence. We define ontological flattening as the conversion of situated, contested, and historically specific meanings into a restricted technical category, proxy, aggregation rule, or benchmark target that is treated as neutral and difficult to contest. The paper develops a bounded conceptual and qualitative synthesis across value pluralism, pluralistic alignment, participatory and democratic AI, procedural justice, science and technology studies, accountability research, aggregate themes from 11 expert interviews, and three urban AI companion cases. 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