The Department of Government Efficiency (DOGE), led by Elon Musk, has unleashed artificial intelligence to examine federal spending, uncovering massive, widespread expenditures and waste across multiple agencies in just its first two weeks of operation.
DOGE teams are using Microsoft Azure’s AI capabilities to analyze detailed financial records from the Education Department, Centers for Medicare & Medicaid Services, and Small Business Administration, according to sources familiar with the operation who spoke on condition of anonymity.
“The DOGE team is using AI software accessed through Microsoft’s cloud computing service Azure to pore through every dollar of money the department disburses, from contracts to grants to work trip expenses,” one source said.
Lower-level department staff received directives to provide access to sensitive financial databases.
At USAID alone, the AI analysis revealed funding for projects including a $20 million “Sesame Street” production in Iraq, $1.5 million for DEI initiatives in Serbian businesses, pottery classes in Morocco, and coronavirus funding at China’s Wuhan Institute of Virology.
The investigation represents an unprecedented deployment of artificial intelligence in government oversight. The DOGE team, which includes former employees from Musk’s technology companies, has accessed data containing personally identifiable information for grant managers and internal financial records.
“The AI probe includes data with personally identifiable information for people who manage grants, as well as sensitive internal financial data,” according to sources within the Education Department, where the ultimate goal is significant reduction in both spending and staff size.
The rapid pace of DOGE’s investigation has sparked controversy, as the team simultaneously examines multiple federal agencies.
Within two weeks of the Trump administration taking office, the analysis has already led to major changes, including the effective dismantling of USAID.
The initiative marks the first large-scale use of artificial intelligence to examine government expenditures, potentially establishing new standards for detecting waste and misuse of federal funds.