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Musk Allies Discuss Deploying AI to Find Budget Savings

Elon Musk’s AI Push in Federal Government

Artificial Intelligence Key to Reducing Federal Spending, Musk Allies Claim

As Elon Musk sweeps through the federal government, those close to the billionaire are touting one particular tool in their arsenal: artificial intelligence. Musk, who leads a bevy of technology companies, including SpaceX, Tesla, X, and xAI, has been tasked by the Trump administration with drastically reducing federal spending through the Department of Government Efficiency, or DOGE.

AI to Identify Budget Cuts and Detect Waste and Abuse

Musk allies who have taken on roles inside government agencies are evaluating how to harness AI to identify budget cuts and detect waste and abuse, according to people familiar with internal conversations, who spoke on the condition of anonymity out of fear of retaliation.

GSA Head Aims to Pool Government Contracts and Use AI for Cost Reduction

On Monday, Thomas Shedd, a former Tesla engineer who was appointed by the new administration to head technology efforts at the General Services Administration, told some staffers that AI would be a key part of their cost-reduction work, according to four people with knowledge of the conversation. At the agency, some staffers have been informed that they will be expected to cut 50 percent of its budget.

AI to Be Used to Detect Fraud and Waste

Shedd also noted that the acting GSA administrator, a Trump appointee and Salesforce executive named Stephen Ehikian, is maintaining an AI strategy document. AI could also be used as a tool to detect fraud and waste, Shedd added.

Unclear If AI Can Identify Overspending or Fraud

While both the Trump and Biden administrations have signaled an interest in increasing federal spending on the use of AI technologies across government, it’s unclear if the emerging technology could be used to identify overspending or fraud as Musk’s allies envision. In public discussions, Musk has, with little evidence, portrayed the U.S. government as rampant with billions of dollars in fraud that can be excised with hard work and technological know-how.

Conclusion

The use of AI in the federal government is a developing story, and it remains to be seen how effective it will be in reducing waste and fraud. However, with the support of the Trump administration and the expertise of individuals like Elon Musk, it is clear that AI will be a key player in the government’s efforts to increase efficiency and reduce costs.

FAQs

Q: What is the purpose of the Department of Government Efficiency (DOGE)?
A: DOGE is tasked with reducing federal spending through the use of technology and AI.

Q: What is the role of Thomas Shedd in the General Services Administration?
A: Shedd is a former Tesla engineer who was appointed by the new administration to head technology efforts at the General Services Administration.

Q: How will AI be used to reduce costs and detect waste and abuse?
A: AI will be used to identify budget cuts and detect waste and abuse, as well as to pool government contracts and assess them for potential redundancies and budget reductions.

Q: Is it clear if AI can be used to identify overspending or fraud?
A: No, it is unclear if AI can be used to identify overspending or fraud, as this is a developing area of research and application.

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