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The Politics of Artificial Intelligence in Cryptocurrency

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As Democrats demand answers on Elon Musk’s use of AI in cryptocurrency, federal agencies are under scrutiny over their deployment of proprietary chatbots and data sharing practices.

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Democrats Demand Answers on DOGE‘s Use of AI

Federal Agencies Under Scrutiny Over Use of AI Software

DATACARD
The Role of Artificial Intelligence in DOGE's Ecosystem

Artificial intelligence (AI) plays a significant role in the DOGE ecosystem, primarily through its integration with smart contracts.

These contracts enable automated and secure transactions between parties, eliminating the need for intermediaries.

Additionally, 'AI-powered predictive analytics' help optimize transaction processing times and improve overall network efficiency.

Members of the House Oversight Committee have sent dozens of requests to federal agencies regarding their use of AI software. The inquiries follow recent reports by WIRED and The Washington Post about Elon Musk‘s Department of Government Efficiency (DOGE) efforts to automate tasks with proprietary AI tools and access sensitive data.

DATACARD
The Origins and History of DOGE

DOGE, also known as Dogecoin, is a decentralized digital currency that was created in December 2013.

It was founded by Jackson Palmer and Billy Markus, with the goal of creating a fun and community-driven cryptocurrency.

The name 'Dogecoin' came from a popular internet meme featuring a Shiba Inu dog.

DOGE uses a modified version of the Litecoin protocol and has a maximum supply of 5 billion coins.

Concerns Over Data Protection and Potential Conflicts of Interest

The central purpose of the requests is to press agencies into demonstrating that any potential use of AI is legal and that steps are being taken to safeguard Americans’ private data. Democrats also want to know whether any use of AI will financially benefit Musk, who founded xAI and whose electric car company Tesla is working to pivot toward robotics and AI.

DATACARD
The Rise of Elon Musk: A Visionary Entrepreneur

Elon Musk is a South African-born entrepreneur and business magnate.

He is best known for his ambitious ventures in space exploration, electric cars, and renewable energy.

Musk co-founded PayPal, which was later sold to eBay for $1.5 billion.

He then went on to found SpaceX, with the goal of reducing space transportation costs and enabling the colonization of Mars.

In 2008, he founded Tesla, Inc., which became one of the leading electric vehicle manufacturers in the world.

Musk's innovative ideas and risk-taking approach have made him a pioneer in multiple industries.

government,ai_software,data_protection,cryptocurrency,politics,artificial_intelligence

Federal Agencies Bound by Statutory Requirements

Federal agencies are bound by multiple statutory requirements in their use of AI software, including the Federal Risk and Authorization Management Program, which standardizes the government’s approach to cloud services and ensures AI-based tools are properly assessed for security risks. The Advancing American AI Act also requires federal agencies to prepare and maintain an inventory of artificial intelligence use cases and make them available to the public.

Proprietary Chatbots and Data Sharing

DOGE operatives have deployed a proprietary chatbot called GSAi to approximately 1,500 federal workers. Employees have been warned against feeding the software any controlled unclassified information. Other agencies, including the departments of Treasury and Health and Human Services, have considered using a chatbot, though not necessarily GSAi.

Concerns Over Data Handling and Potential Misuse

The Department of Education possesses personally identifiable information on more than 43 million people tied to federal student aid programs. Democrats are concerned that students’, parents’, spouses’, family members’ and all other borrowers’ sensitive information is being handled by secretive members of the DOGE team for unclear purposes and with no safeguards to prevent disclosure or improper use.

Potential Risks of AI Use in Government

The use of AI to evaluate sensitive data is fraught with serious hazards beyond improper disclosure. Inputs used and parameters selected for analysis may be flawed, errors may be introduced through the design of the AI software, and staff may misinterpret AI recommendations. Without clear purpose behind the use of AI, guardrails to ensure appropriate handling of data, and adequate oversight and transparency, the application of AI is dangerous and potentially violates federal law.

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