Over the past week, there has been a significant amount of controversy directed at the newly established Department of Government Efficiency (DOGE). Although opinions remain divided regarding its operations, artificial intelligence (AI) and blockchain technology will likely be employed to better optimize government spending on a permanent distributed ledger system.
A Look at How DOGE Could Unleash AI and Blockchain to Rein in Federal Waste
Just last month, DOGE was created via an executive order signed by U.S. President Donald Trump on Jan. 20, 2025. Many who have followed Trump and Elon Musk, the current head of DOGE, understand that the entity was founded to modernize federal technology and software, thereby enhancing governmental efficiency and productivity. Essentially, DOGE seeks to reduce government waste, slash excess regulations, and restructure federal agencies to eliminate unnecessary spending.
Whether you favor Donald Trump or can’t stand him, or think the richest man in the world, Elon Musk, is awful, that is not the point of this editorial. This report offers a theoretical examination of the advantages that artificial intelligence (AI) and distributed ledger technology might provide the federal government to enhance oversight and curb spending. It is widely recognized that Musk is an ardent supporter of AI, and a recent report disclosed that DOGE may be inclined to incorporate blockchain into the agency’s endeavors.
What follows is an exploration of how both technologies might prove instrumental in cultivating fiscal responsibility in Washington.
AI’s Role in Enhancing Government Spending
Artificial intelligence (AI) has taken center stage recently following Openai’s release of Chatgpt, which ushered in an era of generative video, coding, and image-making. Deepseek’s market debut has truly upended expectations. AI holds the promise of revolutionizing government expenditure by pinpointing inefficiencies and curtailing waste.
Governments oversee extensive budgets across sectors such as healthcare, defense, education, and infrastructure, frequently contending with opaque financial flows. AI can scrutinize extensive datasets to uncover irregularities, including duplicate payments, inflated contractor expenses, abnormal procurement patterns, or outright fraud.
Multiple studies predict that artificial intelligence (AI) will add trillions of dollars to the global economy.
Machine learning models, honed on historical data, are adept at flagging transactions that deviate from established norms, thereby enabling auditors to promptly investigate questionable activities. For example, in healthcare, AI might expose fraudulent insurance claims or redundant medical procedures, thereby conserving billions. Predictive analytics further refines foresight, enabling governments to simulate budget outcomes and avert misallocations—for instance, by reallocating infrastructure funds before cost overruns materialize.
Moreover, AI automates routine functions like invoice processing, thereby diminishing administrative delays and human error. By converting raw data into actionable insights, AI empowers policymakers to allocate resources strategically and foster fiscal discipline. The combination of AI’s analytical expertise with scalable cloud computing ensures that even small municipalities can utilize these tools, broadening access to sophisticated financial governance.
Blockchain’s Role in Securing Government Spending
Blockchain technology has been in existence for quite some time since the creation of Bitcoin. Each transaction, inscribed on Bitcoin’s decentralized ledger, becomes permanently traceable and accessible to authorized parties—auditors, agencies, or even citizens. Such transparency can deter corruption, since modifying data demands consensus across the network, rendering clandestine activities nearly impossible.
Studies further suggest that blockchain technology could add trillions of dollars to the global economy by 2030.
Another example is that smart contracts—self-executing agreements on blockchain—could automate processes such as grant disbursements or vendor payments by releasing funds only when predefined conditions are satisfied. For instance, infrastructure projects might automatically trigger payments upon verified milestone completions, thereby minimizing delays and bureaucratic interference.
Public access to anonymized ledger data could further bolster civic engagement by enabling citizens to monitor spending and hold officials accountable. In disaster relief, for example, blockchain might ensure that aid reaches its intended recipients by tracking allocations and preventing misdirection. Furthermore, integrating blockchain with AI creates a more secure ecosystem: AI detects irregularities, while blockchain preserves the findings, generating an auditable trail.
Musk’s Perspective
Although Musk is currently recognized as the head of the newly established agency, it is well known that the owner of X is deeply invested in AI technology and blockchain. Initially, Musk has made considerable strides with the generative AI application Grok and xAI. We are also aware of Musk’s “Colossus,” a massive supercomputing facility in Memphis, Tennessee, developed by his xAI. Reports indicate that the facility commenced with 100,000 Nvidia H100 GPUs, establishing it as one of the largest AI compute clusters in the world. Moreover, Colossus now operates with 200,000 GPUs following a recent upgrade.
Source: Mario Nawfal via X.
Elon Musk has consistently advocated for blockchain technology, frequently emphasizing its potential to enhance transparency, efficiency, and reduce costs. When X influencer Mario Nawfal asked if “should the treasury be put on the blockchain” so fraudulent payments don’t occur, Musk responded “yes.” Musk and Tesla support dogecoin (DOGE) and bitcoin (BTC), and he has frequently associated blockchain with financial independence and decentralization, consistent with his vision of technological progress.
AI and Blockchain’s Double-Sided Sword
While some may regard AI and blockchain as beneficial, others fear that they could pave the way for a realm dominated by techno-oligarchs. Although AI and blockchain offer efficiency, many argue that they risk facilitating surveillance capitalism and state overreach. AI’s>freeze funds, or justify discriminatory policies. Blockchain’s immutable ledgers, if centralized, could permanently embed sensitive data, thereby permitting authoritarian tracking of individuals.
While there are many benefits to AI and blockchain, some believe it could lead to a techno-enhanced oligarchy.
Together, they could facilitate automated mass surveillance—smart contracts that restrict welfare access or AI-blockchain networks that monitor transactions to suppress dissent. Absent adequate safeguards, these technologies risk eroding privacy, autonomy, and decentralization. However, most all technologies come with a double-sided sword. However, the American electorate elected Donald Trump as the 47th president of the United States, and DOGE was established and well known long before he assumed office.
Numerous U.S. agencies have been codified into government through executive orders, including the Defense Intelligence Agency (DIA), the Environmental Protection Agency (EPA), the Bureau of Alcohol, Tobacco, and Firearms (ATF), the Council on Environmental Quality (CEQ), the National Security Agency (NSA), the Welfare Administration, the Drug Enforcement Administration (DEA), the Federal Emergency Management Agency (FEMA), and the Office of Homeland Security.
