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During Wednesday's House Joint Economic Committee hearing, Rep. Dave Min (D-CA) asked Dr. Sterling Thomas, GAO Chief Scientist, whether there is an accurate time frame for artificial intelligence to solve government efficiency issues.

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00:00Thank you, Chair Schweikert and Ranking Member Hassan.
00:03I'm really privileged to be on this committee and to be part of today's hearing on this very important topic.
00:10Obviously, when we talk about waste, fraud, and abuse, we all want to reduce this.
00:14We all want to eliminate as much as possible.
00:16Ensuring that taxpayer dollars are spent effectively is part of our mission here in Congress.
00:22And so, I'm very excited to hear about the possibility of what we can do to try to rein in some of these waste,
00:29wasteful actions.
00:31Every year, the federal government disperses trillions of dollars, as we know, across thousands of different programs,
00:37health care, infrastructure, defense, disaster relief, and on and on and on.
00:41And, of course, with this level of spending comes the inevitable challenge of effectively managing waste, fraud, and abuse.
00:47Historically, large organizations, including, I just want to note, private companies, big corporations,
00:53have all had to deal with this problem of waste, fraud, and abuse.
00:56And they've done so through manual audits and control systems.
00:59But the rapid development of technology over the past few years, including AI, as we're talking about today,
01:05give us a really transformative opportunity to try to run government better.
01:09We're talking about some very, very exciting potential here.
01:12That being said, I think it's important to also recognize that technological advances like AI
01:17are only going to be as good as the parameters we set for them.
01:20And these are fundamentally normative parameters we're talking about.
01:23So when we think about efficiency, we need to talk about the goals and timelines that are our mission here.
01:30Are we talking about just reducing costs?
01:32Are there other goals involved?
01:34What's the timeline we're looking at for efficiency or cost cutting?
01:36Is it immediate?
01:37Is it a year out?
01:38Is it 10 years out?
01:40All of these things matter.
01:41And I just want to give you an example here.
01:42When we talk about Social Security, despite a number of really bad and false and debunked claims
01:48about Social Security fraud recently, we know that Social Security has been a remarkably effective program
01:54and an efficient program.
01:55A very, very low percentage of fraud, always under 1% under any analysis,
02:00a very low percentage of overhead spent on that,
02:02less than 0.5% of the total program is spent on personnel and overhead.
02:08And until this year, the Social Security Administration was renowned for its remarkable ability
02:13to deliver trillions of dollars of checks consistently, securely, and on time.
02:19Are there ways to cut back on Social Security?
02:21Yes, of course.
02:23And we've seen Elon Musk and Doge do just that,
02:25attempting to fire 12% of the Social Security workforce.
02:28This has, though, led to lots of reports of delayed and missing checks,
02:33difficulty for seniors, including ones that have called my office,
02:35trying to find personnel that will deal with their problems with Social Security.
02:40So the question, of course, is what do we mean by efficiency when it comes to Social Security?
02:45Are we talking just about cutting costs?
02:46Are we talking about cutting costs now?
02:48Are we talking about other goals here?
02:50I would submit to you that I think what Social Security has done is get checks out to people.
02:54That is its mission.
02:56And so, again, when we think about AI and how it can improve efficiency across different agencies,
03:02those goals, the time frame that we're talking about, are important.
03:06I want to give you another example.
03:07I represent a vibrant life sciences industry,
03:09and I've heard a lot of growing concerns about the major cuts that have been made to staffing
03:14at the Food and Drug Administration,
03:16and that these will lead to longer approval times for new drugs and devices.
03:20In fact, if you look at the FDA structure,
03:22these staff are actually paid for largely by user fees from the companies seeking approval.
03:27So actually the cost, other than if you're looking at the very immediate time frame, is zero.
03:33But if your priority is to look for immediate spending cuts, the administration,
03:38the terminations of lots of FDA staff might make some sense,
03:40but beyond just the immediate present, it doesn't make any sense.
03:44And if you're looking at any other goals, including FDA approval, rapid approval of drugs and devices,
03:49these cuts look very inefficient.
03:51So I guess my first question to you all, just maybe I'll start with Dr. Thomas.
03:55When we talk about efficiency, what time frame should we be looking at?
04:00Very short-term or long-term?
04:02Well, we look at both.
04:04So we're looking at short-term efficiencies are where we've identified potential areas of concern
04:09and made recommendations of how to improve those areas of concern.
04:13And then, of course, with the long-term one,
04:15that gets into the system that you're using, a systemic challenge.
04:19And we identify opportunities there as well, sometimes as matters for Congress,
04:22sometimes as areas of attention for the executive branch.
04:26So we look at both of them.
04:27I want to ask Mr. Canarsa that same question.
04:30Yeah, that was a good answer.
04:31OIGs are in the same business.
04:33You know, there are short-term benefits.
04:34And then, you know, project out for the longer term for those bigger efficiencies that you're talking about.
04:38And I want to follow up with one last question for you, Mr. Canarsa.
04:41Do you think that Inspector General's oversight, transparency, disclosure,
04:46that these are important things that we need to have real efficiency in government,
04:50whether we're using AI or not?
04:53Absolutely.
04:54That's what the, you know, the IG Act was built on,
04:56was the value of independent, transparent, nonpartisan oversight,
05:01just so that the facts can be presented as to how to improve these agencies and their programs.
05:06So just to be clear, firing 19 Inspectors General would not improve efficiency?
05:09I mean, that, I should say that the OIGs themselves didn't go away.
05:15Their leadership was removed.
05:16So we're proud that the staff that's there and the leadership that has stepped up has kept that oversight going.

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