How to Fix DOGE's Data Problem

The Department of Government Efficiency ('DOGE') was never meant to fly under the radar...

Launched last year with a mandate to slash costs and bring AI into every corner of the U.S. government, the agency has bulldozed through bureaucracy.

DOGE has spent the past several months scrutinizing every corner of the government. Federal agencies from the IRS to the Pentagon were ordered to open their data vaults.

But now, DOGE itself is under scrutiny...

The agency gained access to massive troves of taxpayer data and health statistics, all in the name of making the government faster and cheaper using AI. And that doesn't sit right with a group of federal auditors.

The Government Accountability Office ("GAO"), a nonpartisan office that provides auditing and other services for Congress, has been auditing DOGE since last month.

It's looking into whether the agency moved too fast... possibly overlooking the most basic safeguards around privacy, data quality, and transparency.

In short, Washington's boldest AI initiative just hit a wall. Folks at the top may have to rethink how AI gets built – and who gets to build it.

This could be a turning point for the government. And it could be good news for a select group of stocks...

AI can't fix government until someone fixes the data...

DOGE was created to apply cutting-edge AI to longstanding inefficiencies. It's looking at areas like slow, wasteful procurement processes and antiquated benefits systems.

But AI is only as smart as the data it learns from. And in this case, the federal government's data is still a mess...

Different departments maintain overlapping systems that rarely talk to one another. Some still use software built in the 1980s. Records are often incomplete or inconsistent. They might not have been updated for years.

So while AI models promise speed and scale, they stumble when they're fed chaotic inputs. That's a dangerous mismatch when you're trying to manage things like social services, military supply chains, or Medicare reimbursements.

The audit is examining whether DOGE had formal risk-management protocols for the data it was ingesting. It could have failed to vet sources or properly label sensitive inputs.

That's a recipe for inaccurate predictions and policy misfires.

The GAO's official report hasn't yet been released. But the audit has already clarified the next phase of AI development in Washington... data resilience.

DOGE needs a lift from specialized data infrastructure firms. These companies provide the underlying scaffolding for AI. They clean, standardize, label, and secure enormous quantities of data.

They help identify biases, remove redundancies, and ensure systems can trace every decision back to a verified source.

In short, they make messy government records usable for the high-stakes world of machine learning.

And now, their role is front and center.

Agencies aren't just looking for flashy models anymore...

They need reliable tools, built and maintained by companies that understand data integrity.

The GAO's findings could soon spark a spending wave. DOGE has already paused some pilot programs. But the agency isn't scaling back its ambitions.

If anything, it's doubling down.

We expect a sharper focus on partnerships that can shore up DOGE's data quality and compliance. That means billions of dollars in potential contracts for companies that specialize in these critical areas.

Private-sector vendors with a track record in health care, defense, or financial auditing are particularly well positioned. Several are already in talks to provide remediation plans for DOGE's flagged systems.

The media is fixated on the audit's red flags. But for investors, it's more important to focus on a far more lucrative takeaway...

The government just got a wake-up call about implementing AI...

My team and I have been watching this story closely. It's coming at a critical time... because the next phase of the DOGE master plan is about to kick off.

Government insiders have been preparing for this moment since January. But the mainstream media has barely said a word. And I expect the vast majority of investors will miss out as a result.

That's why I hope you'll join me for an urgent briefing on Thursday at 8 p.m. Eastern time. My colleague Rob Spivey and I will blow the lid right off this story... and share the best way investors can get ahead of this big catalyst.

We'll explain everything on Thursday. Use this link to reserve your spot for free.

The GAO's audit could make clear some glaring potential oversights at DOGE. But that won't stop the government's AI rollout.

It's not about reversing course. It's about better data... and those that can provide it.

Regards,

Joel Litman
April 22, 2025