On May 23, Reuters reported that Elon Musk’s DOGE (Department of Government Efficiency) team is expanding the use of his AI chatbot, Grok, within the U.S. federal government to analyze data. According to three sources familiar with the situation, this move may breach conflict-of-interest laws and pose risks to sensitive data related to millions of Americans. Privacy experts are alarmed, suggesting Musk’s team is bypassing established data protection protocols, especially as President Donald Trump continues reorganizing the federal bureaucracy. One insider stated that DOGE is using a customized version of Grok for data analysis and report generation. Two other sources revealed that DOGE encouraged Department of Homeland Security (DHS) staff to adopt Grok, even though it hadn’t received formal approval for use there.

Reuters couldn’t confirm the exact data Grok is processing or the systems setup. Developed by Musk’s xAI in 2023 on his social media platform X, Grok’s deployment within government raises concerns over data security, potential misuse, and the unfair advantage it could provide Musk in federal contracts. The White House, xAI, and Musk did not comment. DHS denied DOGE pressured employees to use Grok but did not clarify further. xAI’s website mentions it may monitor Grok users and promotes expansive AI knowledge. DOGE reportedly accessed protected federal databases containing personal American data—systems usually restricted to a few authorized officials. Experts warn this could lead to privacy violations or national security risks.

Traditionally, federal data access and AI usage require strict oversight and legal compliance. Using Grok marks a major shift for DOGE, which has been involved in firing federal employees, taking over data systems, and dismantling agencies under the claim of reducing waste and fraud. Privacy advocate Albert Fox Cahn called this situation a serious threat, fearing data may flow back to xAI. Regulatory expert Cary Coglianese said the arrangement could financially benefit Musk’s company and damage fair competition.

Furthermore, DOGE reportedly pushed DHS to use Grok, although it wasn’t approved under DHS’s AI policy. DHS had earlier allowed ChatGPT, Claude, and Grammarlys AI for non-sensitive tasks, but shut down access in May after suspected misuse involving sensitive data. Musk, as a special government employee, is limited to 130 days of service and recently indicated he would scale back involvement with DOGE. If he directed Groks use personally, legal experts say it could violate criminal conflict-of-interest laws.

Former ethics counsel Richard Painter warned this gives the impression of Musk using government channels for personal gain. Even if Musk wasn’t directly involved, it raises ethical concerns that the White House should address. The Grok push aligns with a broader DOGE initiative, reportedly led by Kyle Schutt and Edward Coristine (a 19-year-old using the online alias Big Balls), to integrate AI into federal processes. Sources claim DOGE has sought access to DHS email systems and tried training AI to flag employees not aligned with Trump’s political views.

At a Department of Defense agency, employees were recently told that some of their activities were being monitored by an algorithm, though its unclear what tool was used. The Defense Department said DOGE hasn’t engaged in network monitoring or deployed AI tools like Grok but acknowledged that all government devices are subject to routine monitoring.

Disclaimer: This image is taken from Reuters.