 "The reported data exposure is not limited to financial records; sensitive student loan information, affecting millions, has also been accessed. Image Credit: Reuters")
Elon Musk’s Department of Government Efficiency (DOGE) is facing intense scrutiny over reports that highly sensitive data from the US Department of Education is being fed through AI systems. According to a Washington Post investigation, DOGE is using Microsoft’s Azure cloud platform to analyse data that includes personal information and internal financial records.
This initiative is reportedly part of a broader plan to extend AI usage across all federal agencies, raising concerns about security and ethical oversight.
The revelation has sparked alarm among cybersecurity experts and government watchdogs, who warn that AI tools, while powerful, are often unreliable. Critics highlight that AI’s ability to generate seemingly credible outputs is undermined by its tendency to hallucinate—essentially fabricating information with deceptive confidence. This, combined with lax data protection measures, could create vulnerabilities that adversarial nations or hackers might exploit.
AI vs. security protocols
Federal agencies typically have strict rules against using AI for handling sensitive data, but DOGE appears to be bypassing these regulations. The Department of Education’s data pipeline reportedly tracks every dollar spent by the agency, from contracts and grants to travel expenses.
The stated goal is to streamline operations and slash spending, though President Trump has publicly expressed a desire to abolish the department altogether. Congress, however, retains the sole authority to dismantle federal agencies, creating a potential legal standoff.
The reported data exposure is not limited to financial records; sensitive student loan information, affecting millions, has also been accessed. Security risks are heightened by the administration’s past lax approach to data protection, exemplified by a controversial unclassified email sent by the CIA listing newly hired staff. Critics argue that if the administration is this cavalier with national security data, it’s unlikely they’ll prioritise safeguarding educational records.
Internal tensions and staff backlash
Within the Department of Education, employees are already feeling the impact. Around 100 staff members have been placed on leave, many of whom were involved in Diversity, Equity, and Inclusion (DEI) initiatives. This move follows an executive order from Trump that forbids federal agencies from discussing DEI topics.
Agencies like the CDC and National Science Foundation have reportedly had to scrub terms such as “transgender” and “LGBT” from their websites and research materials. The staff targeted for suspension are predominantly women and people of colour, according to sources within the agency.
Legal efforts have been launched to slow DOGE’s progress, but insiders report that Musk’s team is working at a staggering pace. Even with court-imposed limitations, DOGE appears largely undeterred. An insider described how recent restrictions on access to Treasury Department payment systems, agreed upon by the administration, are ineffective in practice due to vague terms on when access is deemed “necessary.”
Musk’s rapid reshaping of federal bureaucracy
Musk’s team seems determined to push through sweeping changes under the guise of efficiency and innovation. Critics argue that the agenda is less about technology and more about dismantling traditional government structures.
Inspectors general—key figures in ensuring accountability—have been dismissed in droves, and agencies like USAID are reportedly on the chopping block. For federal employees and civil rights advocates, these moves signify an erosion of democratic safeguards.
As legal challenges mount and public scrutiny intensifies, the question remains: how far will Musk’s team go in its quest to reform government operations through AI, and at what cost to security and transparency? For now, DOGE shows no signs of slowing down, leaving many to brace for what comes next in this high-tech power struggle.