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Purported DOGE Contract Review Tool Cited in Reports of AI-Driven Misjudgments in VA Budget Cuts

Occurred
Mar 18, 2025
Published
Jun 8, 2025
Source
AI Incident Database

Summary

A purported AI tool using LLMs was deployed to classify Veterans Affairs contracts as expendable based on limited text and simplified criteria. The system allegedly produced hallucinated values and flagged critical healthcare and research services for cancellation. Reportedly, at least two dozen flagged contracts were later terminated.

Developers

  • Sahil Lavingia
  • Department of Government Efficiency (DOGE)
  • Large language model developers

Deployers

  • Sahil Lavingia
  • Department of Government Efficiency (DOGE)

Harmed parties

  • Veterans receiving care through the VA
  • Veterans
  • VA contractors
  • VA clinical and research staff
  • Department of Veterans Affairs (VA)

Tags

  • public sector deployment
  • healthcare disruption
  • large language models
  • hallucination
  • automation bias
  • contract review
  • Veterans Affairs
  • automated decision-making
  • flawed prompt design
  • human-in-the-loop failure
  • unqualified developer
  • Department of Government Efficiency
  • DOGE
  • context
  • human oversight
  • transparency
  • hallucinations
  • inaccuracies

Classification

Category confidence: 90%
Severity confidence: 85%

Rationale: LLM hallucinations caused critical contract terminations affecting healthcare services.

Classifier: Qwen/Qwen3.5-35B-A3B-FP8

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