How Dangerous Is DOGE's Deregulation AI?  ## Metadata - Author: [[Hard Fork AI]] - Full Title: How Dangerous Is DOGE's Deregulation AI? - Category: #podcasts - URL: https://share.snipd.com/episode/faad9ee9-3419-4e20-93e1-abb3b1556d2d ## Document Notes ## Highlights - **Doge AI Targets Half Regulations** - The Department of Government Efficiency claims they can cut 50% of federal regulations, saving $3.3 trillion annually. - This involves identifying redundant regulations that aren't mandated by law and removing them efficiently. 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? ([Time 0:01:56](https://share.snipd.com/snip/5eebb80b-95ab-444f-9ee5-d2aadedfabdc)) - **AI Slashes Deregulation Workhours** - DOGE AI saves about 93% of man hours in deregulation by automating research, drafting, comment analysis, and document creation. - It can handle analyzing hundreds of thousands of regulations and citizen comments swiftly. Transcript: Jaeden Schafer 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. ([Time 0:03:51](https://share.snipd.com/snip/ce44b28a-fb1a-40ae-bb66-8925bd0061a7)) - **AI Used in HUD and CFPB** - The Department of Housing and Urban Development and Consumer Financial Protection Bureau have fully used this AI for deregulation. - Their regulators completed thousands of regulatory section decisions in mere weeks using the AI tool. 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. ([Time 0:05:14](https://share.snipd.com/snip/02371739-83a2-418b-b3ac-3745d856d219)) - **AI Could De-bias Deregulation** - AI could reduce bias in government deregulation, avoiding influence from special interest campaign funding. - This promises a more neutral, economically beneficial approach to cutting harmful or unnecessary regulations. Transcript: Jaeden Schafer But I guess the question is would it be so bad? 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 this without having any sort of biases or special interests. I think this could be amazing, theoretically. And are there issues with this? Could this be hijacked? Are there flaws? 100%. But same thing with people. ([Time 0:07:27](https://share.snipd.com/snip/c74ff9f8-227b-48fc-898d-fa62bebd1d17)) - **Simplify Bills with AI** - Use AI to simplify government bills to a few pages so everyone can understand them before passing. - Apply AI more broadly in government to boost efficiency and clarity across bureaucratic processes. Transcript: Jaeden Schafer That everybody in America could read before they get passed instead of having them be 2000 or 50,000 pages long. It's just outrageous. So I would love AI to be applied to a lot more in government. And I think it would actually be quite useful. In any case, thank you so much for tuning into the podcast today. I hope that this was interesting and sparked some new ideas and concepts for wherever you work or whatever you do. And if it did, the number one thing I would appreciate is a review on the podcast. I read them all. If you are on Apple, drop some stars, leave a comment. And on Spotify, you got to hit the about tab, I think, and you can drop some stars on YouTube. ([Time 0:09:09](https://share.snipd.com/snip/4bbce5f1-221a-4add-930e-3aab6826cf47))