Elon Musk-Led DOGE Feeding Sensitive Data Into AI Amid Cost-Cutting Efforts

The Department of Government Efficiency under Elon Musk’s leadership has started to incorporate government data containing sensitive information into artificial intelligence systems for budget-cutting opportunities. DOGE started this initiative by working with the Department of Education before expanding it to other federal agencies, according to the Washington Post (Feb. 6).

The data collection initiative faces criticism because of the type of information being processed. DOGE handles internal financial data and personally identifiable information (PII) of grant managers through AI, which creates higher risks of cyberattacks and AI-generated inaccuracies.

The DOGE representatives continue to argue that their initiative respects all legal requirements. Madi Biedermann from the Communications and Outreach division declared that DOGE staff members hold federal clearance positions and concentrate their efforts on budget optimization and tax expenditure transparency.

Legal opposition to the initiative has started to appear. The payment system access of DOGE received a court-imposed restriction after unions filed a lawsuit claiming the agency unlawfully shared member data with the Treasury Department. Court officials are currently evaluating whether to impose additional restrictions on the access that DOGE-affiliated personnel have to Treasury records.

DOGE has gained reported access to Medicare’s payment system to identify fraud and waste. AI errors and cybersecurity vulnerabilities, according to experts, could create problems that exceed any potential efficiency improvements.

The federal government’s growing implementation of AI for financial oversight creates a vital challenge between maintaining cost reductions and protecting data security. DOGE’s progress toward efficiency gains and new security risks requires future observation.