As the Trump administration prepared to cancel contracts at the Department of Veterans Affairs this year, officials turned to a software engineer with no health care or government experience to guide them.
The engineer, working for the Department of Government Efficiency, quickly built an artificial intelligence tool to identify which services from private companies were not essential. He labeled those contracts “MUNCHABLE.”
The code, using outdated and inexpensive AI models, produced results with glaring mistakes. For instance, it hallucinated the size of contracts, frequently misreading them and inflating their value. It concluded more than a thousand were each worth $34 million, when in fact some were for as little as $35,000.