AI-Driven DOGE: Smarter or Scarier?  ## Metadata - Author: [[Hard Fork AI]] - Full Title: AI-Driven DOGE: Smarter or Scarier? - Category: #podcasts - URL: https://share.snipd.com/episode/a9352db8-9c87-4aea-ab62-bc585c0fc21a ## Document Notes ## Highlights - **AI to Slash Federal Regulations** - The Department of Government Efficiency aims to cut 50% of federal regulations to save $3.3 trillion annually. - AI analyzes regulation necessity by creating a statute database and automating drafting and comment analysis for efficiency. Transcript: Jaeden Schafer So a lot of this is coming out of an article by the Washington Post, which basically is titled Doge Builds AI Tool to Cut 50% of Federal Regulations. This is pretty interesting. Basically, what's going to be happening is there's this PowerPoint presentation that I don't know if it got leaked or shared or it got out basically. And I have to say, I think it is absolutely hilarious to have a PowerPoint presentation from one of these agencies explaining like why they need to use this tool. I'm assuming that the Department of Government Efficiency had to like make this to pitch it and be like, come on, guys, please let us use this to cut your regulation, probably pitching It to Congress who's like, love spending money and hates it. But whatever, that's funny. The title of the pitch deck is Doge Deregulatory Opportunity, July 1st, so not too long ago. And this is, I love it. It's like a business pitch deck. They have the problem and the opportunity. So the problem, they say, is $3.1 trillion compliance costs a year, which is about 12% of GDP. So that's a lot of money that we're spending on compliance costs. They say $1.2 trillion of reduced investment regulation estimated to lower external investments by $650 billion and lower corporate reinvestments by $550 billion. I mean, they're kind of doing the runoff thing where it's like, if you spend a dollar, then that person takes the dollar and they keep 30% and they spend, reinvest 70%. And then that company takes it and reinvest 70%. So I mean, they're kind of like doing the trickle down effect there too. But I mean, it's not a lie. And it's probably a sound economic principle. So interesting what the opportunity is, they say, 55 or 50% of all federal regulations can be eliminated, yielding a potential $3.3 trillion per annual value opportunity. All right. Is it possible? Or is that crazy? That's what we're going to be debating on the show today. But first I want to say what, like, what are they using AI for in all of this? And what is the challenge that they're trying to solve? Basically the challenge they say is that there's four steps you have to take when you want to remove a regulation. Number one, you have to research what statutory is required, and then you have to basically select what to keep. You have to then draft the regulatory submission documents. You have to analyze and respond to about 100,000 comments. And then you have to draft the final rule, including the comment responses. Section to do all of that is about 36 hours. And, you know, there's 100,000 sections, it would be 3.6 million man hours to deregulate 50% or 100,000 sections, a lot of time, like basically, some people say it's impossible. So their solution is this new Doge AI program, which they say saves about 93% of man hours. How it works is it creates a regulatory slash statute database and then it determines which regulations are required it enables the agency to comment and modify the results in a final Delete list they are then automatically drafted they automatically draft a submission document for the attorneys to edit they automatically annual analyze 20 to 500000 citizen Comments for the final rule conclusion. And it's really, really, yeah, honestly, it's kind of crazy. So a lot of people ask, has this been used? Is this new? And they actually had a case study. So they said for the CFBP, 100% of deregulations were written using this new tool. They said for the HUD, the policy team completed decisions on a thousand regulatory sections in two weeks, which is crazy. And they said they vetted and endorsed, this has been vetted and endorsed by Doge lawyers, whatever, they say the lawyers that endorsed it, but I don't think that's super relevant. Anyways, they want to roll this out to more people. So I think this is really fascinating. It's a really interesting concept. Basically, they say that it's going to analyze about 200,000 federal regulations, and then it's going to identify ones that aren't required by law, right? Because I think what happens a lot, whether it's Biden or Trump signing executive orders, and of course, there's like lawsuits and federal judges and like all of this mayhem that happens About laws and rules and Congress weighing in on things. But things are changing all the time. But we have this massive logbook of regulations that aren't always directly correlated to some sort of act by Congress or some sort of law, but maybe like tangentially. And it's hard to know like when the regulation disappears or when it appears. So basically, this is going to go clean out all of the books. It's going to eliminate half of those is the goal. ([Time 0:01:56](https://share.snipd.com/snip/4eec755a-ad4d-4811-b99f-25f942da006a)) - **Real World AI Deregulation Example** - The Consumer Financial Protection Bureau used the Doge AI tool to deregulate 100% of their cases. - The Department of Housing and Urban Development completed decisions on 1,000 regulations in two weeks with AI. Transcript: Jaeden Schafer And they actually had a case study. So they said for the CFBP, 100% of deregulations were written using this new tool. They said for the HUD, the policy team completed decisions on a thousand regulatory sections in two weeks, which is crazy. And they said they vetted and endorsed, this has been vetted and endorsed by Doge lawyers, whatever, they say the lawyers that endorsed it, but I don't think that's super relevant. Anyways, they want to roll this out to more people. So I think this is really fascinating. ([Time 0:05:14](https://share.snipd.com/snip/609e0c58-7687-48a7-90e9-7ee93fe797a6)) - **AI Reduces Regulatory Bias** - AI could reduce regulation bias since politicians serve special interests that skew decisions. - Using AI might unlock economic potential by removing unneeded rules regardless of political influence. Transcript: Jaeden Schafer I don't know. It's so tricky because I know everyone thinks AI has biases or can hallucinate or has issues and there are causes for that. You can mitigate a lot of those challenges. I kind of love this use case of AI in the government. Like, if you could try to make it less biased, that's fantastic. Because obviously, every single congressman, a congresswoman has their own special interests. They have people that support them. And I'm sure if you're a Democrat, you think it's just the Republicans. And if you're a Republican, you probably think it's just the Democrats. I don't really care. I think everyone has special interest groups that fund their campaigns, and they're sort of beholden to them that's just kind of the nature of politics and so it it sucks when you're Trying to deregulate something and then maybe some guys like well you know this oil and gas company gave me a ton of money for my campaign so i don't want to do anything that would negatively Impact them or maybe this electric solar panel company gave me a lot of money for my campaign so you know i don't know i don't want to do anything that would hurt them whatever right you Can imagine both sides of this argument from both sides of the aisle. But at the end of the day, maybe there's a regulation that really just needs to be removed regardless of the company it potentially hurts. It could unlock a lot more for the economy and the country as a whole. And so I think AI would be the perfect tool to go in and use ([Time 0:07:31](https://share.snipd.com/snip/14ef69de-7156-470e-ae58-395a6a37c908)) - **Use AI to Improve Government** - Although AI tools could be hijacked or flawed, they can speed up regulatory processes and increase efficiency. - Embrace AI to streamline government work and rewrite legislation for clarity and brevity. Transcript: Jaeden Schafer Could this be hijacked? Are there flaws? 100%. But same thing with people. I don't think it's any different. This just could speed up the process, just make us more efficient. So I'm very interested there. I'm bullish on the concept. I'm sure there's going to be a lot of debate on whether this is good or bad. But overall, I think I'm bullish on the concept. And I would love to have AI rewrite all bills by Congress to basically be three pages long that everybody in America could read before they get passed instead of having them be 2000 or 50,000 ([Time 0:08:47](https://share.snipd.com/snip/364e2bd0-c7f2-443a-9c2e-7819af0e34d8))