The Trump administration uses DOGE's AI tool to cut US regulations by 50% ahead of the inauguration anniversary.
Federal authorities are reportedly using an artificial intelligence tool developed under the Department of Government Efficiency (DOGE) initiative to identify regulations for elimination. By the anniversary of Trump's inauguration, government agencies expect to eliminate about 50% of existing federal rules.
According to sources, the Department of Housing and Urban Development and the Consumer Financial Protection Bureau (CFPB) are using the AI Deregulation Tool.
The AI-powered Deregulation Decision Tool will examine approximately 200,000 rules and eliminate any deemed unnecessary, with the goal of a 50% reduction by next January.
Regulations identified by the system will be reviewed by staff before being removed. The Department of Housing and Urban Development (HUD) has already deployed the tool to evaluate 1,083 regulatory sections. At the same time, the Consumer Financial Protection Bureau relied on it for all of its deregulatory decisions.
Fields said they are still reviewing all options to facilitate deregulation.
During his campaign, President Trump argued that some federal regulations resulted in inflated prices for various consumer goods. He promised to launch the "most aggressive regulatory rollback" in U.S. history, including efforts to roll back environmental protections and dismantle the Environmental Protection Agency (EPA).
When asked about the use of AI for deregulation, White House spokesman Harrison Fields said they are reviewing all potential options to fulfill the president's deregulatory agenda. However, he emphasized that no specific plan had been established and that discussions were still in their early stages and required close coordination with the White House.
He added: "The DOGE experts creating these plans are the best and brightest in the business and are embarking on a never-before-attempted transformation of government systems and operations to improve efficiency and effectiveness."
DOGE's AI contract reviewer faced problems in June.
In June, DOGE's AI system mistakenly flagged the Department of Veterans Affairs' internet contract for cancellation. According to the agency, the service was given vague and contradictory instructions, hence the error.
Sahil Lavingia, the author of the AI code, had instructed the system to eliminate anything not directly related to patient care. But neither he nor the AI had the knowledge necessary to accurately judge that.
Lavingia, speaking to ProPublica, acknowledged that he made mistakes because he didn't have enough time and tools. He also noted that he understood the "MUNCHABLE" list was meant to be reviewed by others before making decisions.
ProPublica's analysis found that Lavingia's code also relied on older, more generic AI models. The model produced erroneous numbers, often estimating around 1,100 contracts at $34 million each, when the actual figures were frequently in the thousands, and struggled to handle comprehensive documents. Analysts also said that using off-the-shelf AI with little understanding of VA operations should never have been on the table in the first place.
Waldo Jaquith, a former Treasury Department official appointed under Obama who managed the IT contract, criticized DOGE for encouraging the AI system to obtain information from easily accessible sources rather than accurate ones, such as public databases like USAspending. He described the approach as lazy; while faster, it's still less accurate.
Cary Coglianese, a professor at the University of Pennsylvania, also noted that the AI model would require an advanced understanding of healthcare, institutional operations, and human resources, knowledge it currently lacks.
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