Musk’s AI team faces scrutiny over use of Grok in sensitive federal data systems

Elon Musk’s Department of Government Efficiency (DOGE) team is reportedly expanding the use of his Grok AI chatbot within the US federal government, raising serious ethical and legal concerns.

According to three people familiar with the matter, cited by Reuters in its exclusive material, DOGE is deploying a customised version of Grok to analyse government data and assist in drafting reports, even within the Department of Homeland Security (DHS), where Grok has not received formal approval.

Grok, developed by Musk’s xAI firm and hosted on his X platform, is being used by DOGE to increase efficiency in government operations. However, five legal and technology experts warn that if Grok is processing sensitive federal data, the practice may breach privacy laws and conflict-of-interest statutes. There are also fears that the tool could be trained on confidential information or giving Musk’s companies an unfair commercial advantage in federal AI contracting.

The DHS denied that DOGE pressured staff to use Grok, but internal sources suggest otherwise. DHS previously allowed limited use of AI tools like ChatGPT and Claude for non-sensitive data, but suspended access in May after concerns emerged over improper data handling. Grok was not among the approved tools.

DOGE, led by software engineers and Musk associates, has already accessed highly restricted databases containing personal information on millions of Americans. The use of Grok with such data has sparked fears of a major privacy breach and potential exploitation. Albert Fox Cahn of the Surveillance Technology Oversight Project called it “about as serious a privacy threat as you get.”

Experts also raised red flags about Musk’s dual role as a special government employee and owner of xAI. Under federal law, he may not be involved in matters that could financially benefit him—a line that might be crossed if Grok is promoted within federal agencies. Legal expert Richard Painter noted that even the appearance of self-dealing can damage public trust, though actual prosecution is rare.

The push to adopt Grok is reportedly led by DOGE staffers Kyle Schutt and Edward Coristine, a 19-year-old who has gained attention online under the name "Big Balls." Neither responded to requests for comment.

Sources also said DOGE staff have recently tried to access DHS employee emails and train AI systems to flag staff not seen as loyal to Trump’s political agenda—actions that may violate civil service protections. Additionally, employees at a Department of Defence agency were recently warned their computer activity was being monitored by an algorithmic tool, although it remains unclear whether Grok is involved.

The Pentagon denied any DOGE-led surveillance or use of Grok for monitoring but acknowledged that all government computers are subject to standard monitoring.

Musk, who said he would scale back his involvement with DOGE to just one or two days per week starting in May, is still overseeing the team’s work. As a special government employee, he is limited to 130 days of service per year, though part-time work could extend his term.

By Tamilla Hasanova