Elon Musk’s Department of Government Efficiency (DOGE) is accelerating its push to integrate artificial intelligence into the federal government, with reports emerging that the agency is developing a custom chatbot, dubbed GSAi, for the U.S. General Services Administration (GSA). The move aligns with President Donald Trump’s broader AI-first modernization agenda, which aims to streamline government operations and reduce costs.

According to Wired, the chatbot project is intended to enhance the efficiency of the GSA’s 12,000 employees who manage critical government functions, including office buildings, contracts, and IT infrastructure. Two individuals familiar with the initiative stated that Musk’s team hopes GSAi will not only assist employees with day-to-day tasks but also analyze vast troves of federal contract and procurement data to identify cost-saving opportunities.

From Concept to Execution

The idea of leveraging AI to modernize procurement and contract management is not new, but what sets GSAi apart is the speed and ambition behind its development. Thomas Shedd, a former Tesla executive now heading the GSA’s Technology Transformation Services, hinted at the initiative during a recent internal meeting. “Another [project] I’m trying to work on is a centralized place for contracts so we can run analysis on them,” he said in an audio recording obtained by Wired. “This is not new at all—this is something that’s been in motion before we started. The thing that’s different is potentially building that whole system in-house and building it very quickly. This goes back to this, ‘How do we understand how the government is spending money?’”

Originally, the GSA considered leveraging Google’s Gemini AI, but ultimately decided against it due to data security concerns and its inability to meet DOGE’s specific needs, according to one of the individuals familiar with the project. Google spokesperson Jose Castañeda declined to comment on the matter.

A Broader AI Integration Effort

GSAi is not DOGE’s only AI initiative. The agency has also been exploring the deployment of AI-powered coding assistants to help government engineers automate software development tasks. A document reviewed by Wired indicates that one of the tools under consideration was Cursor, a coding assistant developed by Anysphere, a startup backed by investors with ties to Trump. However, concerns over security and compliance led to the project being put on hold. Instead, DOGE is now reportedly advocating for Microsoft’s GitHub Copilot, which has a more established track record in enterprise and government settings.

Despite these efforts, DOGE has faced pushback from federal employees, labor unions, and congressional Democrats, who argue that the rapid AI-driven overhaul of government functions could present constitutional and security risks. Some AI projects have already been quietly halted, including at least one generative AI tool meant for broader government use, Wired reported.

AI Will Be Key To Cost-Cutting

Musk’s expanding influence in Washington has played a significant role in the administration’s aggressive AI adoption strategy. His proximity to Trump, who has ordered a sweeping removal of barriers to AI integration in government, has reassured investors betting on the modernization of federal operations. However, critics warn that prioritizing speed over security vetting could open the government up to cyber risks and potential conflicts of interest.

Meanwhile, the push for AI efficiencies dovetails with DOGE’s broader cost-cutting initiatives. The Office of Personnel Management, under Musk-aligned leadership, has encouraged federal employees to resign if they are unwilling to return to in-person work full-time. Similarly, AI-driven efficiencies in government procurement and IT management could be leveraged to reduce staffing costs and streamline bureaucratic functions.

A Turning Point for AI in Government

While GSAi remains in development, its eventual deployment could mark a turning point in how AI is used across federal agencies. The extent to which Musk and DOGE can integrate AI into government operations while balancing regulatory and security considerations will be a key test of the administration’s modernization efforts.

As the project moves forward, the government will need to navigate the complex interplay between technological innovation, regulatory scrutiny, and political influence. Whether GSAi delivers on its promise or becomes another stalled government AI initiative remains to be seen, but its development signals a clear commitment from Musk’s team to reshaping the federal landscape through artificial intelligence.