DOGE Launches AI Deregulation Tool to Cut Federal Regulations and Save Trillions in Compliance Costs

The Department of Government Efficiency, known as DOGE, is grabbing national headlines after launching an unprecedented attack on federal bureaucracy that some insiders are calling “barking mad.” Just yesterday, Fox Business broke news that DOGE, an agency first staffed by Elon Musk before his highly publicized departure, has released a sweeping artificial intelligence system designed to scan and potentially eliminate nearly half of the 200,000 federal regulations currently on the books.

According to The Washington Post, this DOGE AI Deregulation Decision Tool has already been piloted at the Department of Housing and Urban Development and made all deregulation recommendations at the Consumer Financial Protection Bureau. The administration claims this move could save the country over $1.5 trillion in compliance costs yearly, spark $600 billion in investments, and shrink the federal budget by a staggering $85 billion. Trump administration staffers like Harrison Fields are touting it as the heroic digitization of government trimming—the very efficiency pet project the President promised voters. Federal agencies now face a four-week deadline to submit their lists of regulations for the chopping block, with DOGE ramping up staff training on the new system.

A key piece of context is the departure of Elon Musk, who was the agency’s original architect and famously wielded a chainsaw as the group’s mascot, according to Bloomberg. Even without Musk at the helm, DOGE persists as a decentralized force, blending federal employees and outside consultants in a government-wide effort to root out perceived bloat.

But the plan is not without skeptics. TechCrunch reports that earlier versions of DOGE’s AI tools sometimes made outlandishly inaccurate projections, including an infamous contract debacle at Veterans Affairs. Critics like University of Pennsylvania professor Cary Coglianese warn that even advanced AI still lacks the institutional wisdom to accurately assess regulatory value, meaning human review remains a crucial safeguard.

All this unfolds alongside the Trump administration’s push to embed cryptocurrency into the financial mainstream and the rollout of the America’s AI Action Plan, making July an inflection point for technology-driven government reform.

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