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DOGE and the Death of Public-Sector Privacy

Published 26 April 2025
Ahmad Shadid
Authors
By Ahmad Shadid
Edited by Ana Alexandre
Key Takeaways
  • While DOGE cites efficiency as grounds for layoffs, critics argue the cuts risk undermining critical government functions.
  • Why does an “efficiency” agency need access to sensitive health and tax records?
  • Agencies lack a baseline AI data governance framework.

Under the guise of efficiency, the Department of Government Efficiency (DOGE) has fired workers en masse.

There is a more significant concern than a shrinking bureaucracy: DOGE is recklessly using AI systems to snoop through sensitive federal records.

Government data isn’t just basic information, like names or Social Security numbers. Some agencies hold private details, such as medical diagnoses, therapy notes, bankruptcy filings and income-specific information that are extremely sensitive.

DOGE has tapped into these heavily protected databases, sparking serious concern among federal workers. Besides that, the federal government is handing over its most valuable internal data to algorithmic processes and, in many cases, to private contractors with no clear accountability.

The Security Conundrum

While most Americans may not notice it yet, the United States is discreetly building a chilling surveillance network inside its own borders, and the effects may be too terrifying to fathom.

If this trend continues, U.S. public infrastructure might soon be managed by AI models controlled by private actors, tipping the balance of power away from citizens and toward the state and its corporate allies.

The real question isn’t whether DOGE can access this data, but why it wants to. Why is the government efficiency unit digging through health records or tax filings of federal workers? Since when did privacy become a negotiable tradeoff for efficiency?

Security has always been its weakest when institutions rush to outsource. Isn’t that something to think about?

The Holy Grail of Surveillance

DOGE is feeding federal databases into machine learning systems to identify redundant jobs. These include internal human resources systems, public benefits workflows and national lab schedules.

The goal is to cut the headcount. No one tracks which data gets processed, how long it’s stored, or what else it trains. That opens up attack surfaces for bad actors inside and outside the government.

Federal workers have been laid off without knowing how or why. Their records were fed into AI models that made opaque recommendations.

These decisions have real consequences: Pensions revoked, investigations closed, and entire programs frozen. That level of automated decision-making with public records should not happen without audit trails.

NIST and NSF—two science agencies central to U.S. technology development—have lost hundreds of employees. Their internal systems contain sensitive research, grant applications, export control flags and lab coordination data.

Once integrated into AI pipelines, this information becomes persistent and retrainable. There are no clear policies for deletion, access control, or retraining protocols.

More Than a Privacy Concern

Government decisions require transparency. That’s a core tenet of democratic oversight.

AI decisions that affect public employment and federal operations must follow the same standard. DOGE is doing the opposite. DOGE pushes decisions through centralized systems that do not explain their logic or reveal their inputs.

Courts and agencies may never see the model, if a private contractor operates the AI system. This creates legal dead zones. Civil liberties protections can’t apply to decisions no one understands.

This shift affects employees and every American whose data flows through public agencies. Tax records, benefits applications and complaint filings can now feed into government AI tools.

Most importantly, Congress has not passed legislation restricting how AI interacts with public data. Agencies lack a baseline AI data governance framework.

No public register lists which models are in use or who owns them. This is a structural security risk.

Private AI Bureaucracy

DOGE applies a Silicon Valley playbook to the government—cutting staff, automating decisions and letting AI replace human analysis. Public infrastructure isn’t a startup. It relies on transparency, due process and institutional memory. DOGE is erasing those safeguards.

Reports show DOGE has already begun using third-party AI services to process layoffs and reassignments. These contractors are outside standard civil service channels. That makes accountability harder.

There are no standard contracts, data residency guarantees or clear cybersecurity protocols. The vendors are building the first layer of an AI-run bureaucracy with no meaningful checks.

The danger is long-term. A system where key public decisions—from who gets investigated to what programs get defunded—are made by proprietary software that Congress cannot audit. Government as code is a privacy nightmare without legal and democratic oversight.

What To Expect

DOGE is centralizing decision-making and data processing into a narrowband of models controlled by a few actors. The solution is not to block AI adoption, but to apply decentralization and transparency principles to how governments deploy these tools.

Public AI infrastructure must be accountable. Governments should publish model cards, data inputs and decision logs. Agencies should build or license open models with external audits and public feedback channels.

Without that, AI becomes just another surveillance layer backed by state power and private capital.

DOGE shows what happens when that power goes unchecked. Public sector privacy dies by convenience. The only way to stop it is to demand that AI used by the government remains subject to public control.

To summarize, privacy and decentralization aren’t ideals—they are crucial. Lose them, and the public loses its place in the loop.

Disclaimer: The views, thoughts, and opinions expressed in the article belong solely to the author, and not necessarily to CCN, its management, employees, or affiliates. This content is for informational purposes only and should not be considered professional advice.
About the Author
Ahmad Shadid

Ahmad Shadid is the Founder of O.XYZ, an ecosystem building the first sovereign superintelligence, and the founder and former CEO of IO.net, a Solana-based decentralized infrastructure provider.

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