Musk’s DOGE uses AI for massive government spending review

Sensitive personal and financial data is being reviewed by AI under Musk’s DOGE team.

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Elon Musk's Department of Government Efficiency (DOGE) has reportedly used artificial intelligence (AI) to access sensitive data within the US Department of Education as part of a broader plan to reduce government spending.

The AI software, provided via Microsoft’s Azure cloud computing platform, is said to have sifted through personal and financial data to identify potential areas for cuts in the agency’s budget, according to multiple sources with knowledge of the operations.

The AI probe has examined everything from government grants and contracts to employee work trip expenses. The information accessed by DOGE includes personally identifiable data on individuals managing federal grants, which has raised privacy concerns.

While AI is widely seen as a powerful tool for managing large amounts of data, experts have warned that using it to process sensitive government materials presents significant risks.

Critics argue that feeding sensitive data into AI software increases the likelihood of data leaks or cyberattacks. Additionally, AI systems are prone to errors, including the potential for generating inaccurate information when processing large datasets.

The initiative has been criticised by some staff within the Education Department, who claim that they were pressured to grant Musk’s team access to sensitive financial and personnel data. The goal of the probe, according to insiders, is to reduce the size and functions of the department, in line with a broader effort by the Trump administration to shrink federal government agencies.

Under the leadership of Musk, DOGE aims to eliminate what it deems non-essential contracts and programs, focusing on areas such as diversity, equity, and inclusion (DEI) efforts. According to sources, the AI system has already flagged several contracts for elimination, in line with Trump’s executive order to end DEI initiatives across federal agencies.

The use of AI in government has stirred controversy, particularly in light of the Biden administration’s stance, which emphasised AI use only after developing rigorous guidelines to protect privacy and cybersecurity. The DOGE team’s rapid expansion across various departments, including the Education Department, has raised concerns about transparency and accountability.

In addition to its activities within the Education Department, DOGE’s AI-led operations have extended to other federal agencies. Reports suggest that DOGE representatives accessed sensitive data within the Department of Health and Human Services, the Labor Department, and the Centers for Disease Control and Prevention (CDC) as part of an effort to cut down on spending across the government.

While the Education Department continues its push to identify potential cost-cutting measures, staff unions have expressed concerns over the impact of the cuts on workers, especially those in marginalized groups.

Sheria Smith, president of the union representing Education Department employees, reported that many employees placed on paid leave, following the AI-led investigation, were women or people of colour.