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

Representatives of the Elon Musk-led Department of Government Efficiency (DOGE) have reportedly begun feeding sensitive information from government departments and agencies into artificial intelligence (AI) software to search for opportunities for spending cuts.

DOGE started this process at the Department of Education and plans to do the same thing at other departments and agencies, the Washington Post reported Thursday (Feb. 6), citing unnamed sources.

While DOGE is searching for potential spending cuts, the data its representatives are feeding into the AI software includes sensitive internal financial data and personally identifiable information for people who manage grants, according to the report.

Putting the data into AI software increases the risk of cyberattacks and of errors generating by AI systems that can hallucinate, the report said.

Agency leadership authorized the DOGE representatives’ access to the data, per the report.

The Education Department did not immediately reply to PYMNTS’ request for comment.

In a statement provided to Seeking Alpha, Madi Biedermann, deputy assistant secretary, Office of Communications and Outreach, said: “The DOGE employees are federal employees. They have been sworn in, have the necessary background checks and clearances, and are focused on making the Department more cost-efficient, effective, and accountable to the taxpayers. There is nothing inappropriate or nefarious going on.”

It was reported Thursday that a judge limited DOGE’s access to the Treasury Department’s payment system after a group of unions accused the Treasury of illegally sharing member information with DOGE.

The order blocks the Treasury from offering access “to any payment record or payment system of records maintained by or within the Bureau of the Fiscal Service,” with some exceptions, as the judge weighs the unions’ request for a broader temporary restraining order.

It allows “read only” access to two “special government employees” Treasury recently brought in who have ties to DOGE. Both have offices at Treasury, department email addresses and clearance to access some secure but unclassified Treasury information.

On Wednesday (Feb. 5), it was reported that DOGE gained access to Medicare’s payment system and that DOGE representatives were looking at the systems and the spending flowing through it to root out fraud and waste.