Almost 50 House Democrats have signed a message to stop the unauthorized use of AI tools in the government. Members of Congress have asked to cease applying any unauthorized artificial intelligence system that will aid in curbing government spending. President Donald Trump has set up DOGE, or the Department of Government Efficiency. Meanwhile, billionaire Elon Musk has been assigned the responsibility to cut what DOGE will say is waste, fraud, and abuse in the federal bureaucracy.
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The Democrats have acknowledged that artificial intelligence holds the potential to modernize the US government. However, it also highlighted the potential concerns related to employee monitoring and access to sensitive data by DOGE and its AI tools.
“These present serious security risks, self-dealing, and potential criminal liability if not handled correctly, and have the potential to undermine successful and appropriate AI adoption,”
-Letter, spearheaded by Representatives Donald Beyer, Mike Levin and Melanie Stansbury.
The Democrats have further demanded that the administration terminate the use of any AI systems that haven’t been formally approved through processes such as FedRAMP or that have been unable to meet existing legal requirements. The letter, addressed to the White House Office of Management and Budget, was also questioned on whether any of the technology used by the administration was powered by Musk’s company, xAI. This question, in particular, has been asked to clarify any potential conflicts of interest.
According to the Democrats, these would be “exponentially worse if Musk pursues further contracts to become a major provider of government AI services.”
The White House has recently introduced new policies on federal agency AI use and the federal government.
“President Trump recognizes that AI is a technology that will define the future. This administration is focused on encouraging and promoting American AI innovation and global leadership, which starts with utilizing these emerging technologies within the Federal Government. Today’s revised memos offer much needed guidance on AI adoption and procurement that will remove unnecessary bureaucratic restrictions, allow agencies to be more efficient and cost-effective, and support a competitive American AI marketplace.”
– Lynne Parker, Principal Deputy Director of the White House OSTP.
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12. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 43
Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company that designs and manufactures semiconductor technology and other related products. On April 15, KGI Securities initiated coverage of the stock with a “Neutral” rating and $130 price target. The rating reflects caution amid macroeconomic uncertainty as well as Arm’s strategic decision to withdraw from a UK semiconductor deal. Both of these factors have led to dampened investor confidence.
11. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 63
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On April 16, Morgan Stanley reiterated the stock as “Equal Weight” and lowered its price target on the stock to $90 per share from $95.
“Palantir’s technical capabilities coupled with a forward deployed engineer model allows customers to realize early success on their GenAI initiatives.”
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