Elon Musk is back in the headlines with his latest proposal that artificial intelligence could take over certain government functions, citing inefficiency in the U.S. federal system.

During a closed-door session at the Milken Institute Global Conference, Musk discussed the idea with financier Michael Milken. He suggested that AI could help streamline expensive bureaucracies, a proposal that coincides with national efforts to reduce federal spending.

DOGE and the Shift to Tech-Driven Administration

Musk’s remarks align with his leadership role in the Department of Government Efficiency (DOGE), an initiative backed by the Trump administration aimed at cutting federal workforce size and spending.

Initial results are already visible—over 15,000 employees from the U.S. Department of Agriculture have accepted financial incentives to leave, representing about 15% of the agency’s workforce. This groundwork could serve as a model for more extensive administrative cuts powered by automation.

For investors focused on Musk-led firms such as Tesla (NASDAQ: TSLA), the intersection of his public policy initiatives and corporate innovation offers unique opportunities in AI development and regulation.

Neuralink and SpaceX Highlight Future Innovations

During the conference, Musk also touched upon developments at Neuralink and SpaceX, reaffirming his dedication to pioneering a future that encompasses brain-computer interfaces and interplanetary travel.

The implication is clear: as AI evolves, the lines between government functions and private sector innovation are increasingly blurred, especially with Musk at the forefront of both sectors.