Author Wynton Hall argues in his new book Code Red: The Left, the Right, China, and the Race to Control AI, publishing tomorrow, that AI can bolster human efforts to spot mass theft of government funds like the infamous Minnesota fraud scheme, saving taxpayers millions of dollars.
“AI is uniquely suited to help uncover waste, detect fraud, and pinpoint abuse within the federal bureaucracy precisely because it excels at analyzing massive datasets, performing trillions of calculations in seconds, and recognizing complex patterns,” Hall writes in CODE RED. “Put simply, for the first time in a long time, conservatives can do more than just talk about limited government; they can use a transformational cost- cutting weapon to modernize and enhance government efficiency. But where to start?”
As Hall explains, AI can play a role in fraud detection like the efforts of former DOGE leader Elon Musk, who assembled a “nerd squadron” that included young tech prodigies and seasoned engineers to comb through the government’s “trove of data” in what may be the “most audacious conservative cost-cutting initiative ever attempted.”
One of these tech visionaries, Thomas Shedd, a former Tesla engineer, oversaw the General Services Administration’s (GSA) Technology Transformation Services (TTS), which includes hundreds of technologists. DOGE led the effort to adopt an “AI-first” strategy” including the development of “AI coding agents” available to all federal agencies. These agents, trained to read government contract datasets and automate workflows and even help spot wasteful government spending.
Hall writes:
The department plans to build a massive, secure database capable of running procurement analyses that will pinpoint overlapping and redundant spending, as well as enhance fraud detection. “Another [project] I’m trying to work on is a centralized place for contracts so we can run analysis on them,” said Shedd. “This is not new at all— this is something that’s been in motion before we started. The thing that’s different is potentially building that whole system in- house and building it very quickly. This goes to this [idea], ‘How do we understand how the government is spending money?’” By developing these systems internally, DOGE aims to ensure compliance with OPM guidelines for data privacy and responsible AI usage.
The Breitbart News social media director cites Dmitry Shevelenko, the CEO of AI platform Perplexity, in CODE RED, who states that AI can “streamline government” and handle “80 percent of that initial work faster, where you get your target list,” which would allow humans to make better decision-making.
Abuse of federal aid became a focal point when federal prosecutors charged people with defrauding programs run through Minnesota’s state Medicaid service. Many of those accused of fraud in Minnesota are part of the state’s Somali community.
In CODE RED, Hall wrote that Government Accountability Office (GAO) estimated that the federal government loses between roughly a quarter to half of a billion dollars annually to fraud. He noted that the GAO also found, since 2023, that federal agencies have reported about $2.8 trillion in estimated improper payments. The Small Business Administration (SBA) granted $312 million in coronavirus pandemic-era loans to children under the age of 11 years old.
“In fairness, past governmental eff orts utilizing machine learning and data mining have produced results. Federal law enforcement has worked to combat fraud rings that have bilked taxpayers of billions of dollars,” Hall contended.
He continued:
In December 2024, at the behest of the House Budget Committee, the nonpartisan Congressional Budget Office (CBO) released its first ever report on AI. Among the CBO’s predictions were that AI could have the effect of “increasing the efficiency of the government in collecting tax revenues and in distributing those revenues through transfer payments” and that “successful use of AI to reduce fraud could result in fewer improper payments in the largest mandatory spending programs: Medicare, Medicaid, and Social Security.” 30 That would be no small victory. Over the last decade, improper Medicaid payments and errors are estimated to have been between $543 billion and $1.1 trillion.
Hall added in CODE RED, “Likewise, the Office of Personnel Management (OPM) says that generative AI ‘has the potential to improve the way the federal workforce delivers results for the public,’ helping employees ‘enhance creativity, efficiency, and productivity.’”
Wynton Hall’s CODE RED covers a wide range of topics related to AI, ranging from its impact on elections and the economy to faith and family. Crucially, the book doesn’t treat AI as a terrible evil or utopian good — rather as a tool that must be harnessed correctly to support American values.
Senator Marsha Blackburn (R-TN), who was named one of TIME’s 100 Most Influential People in AI, praised Code Red as a “must-read.” She added: “Few understand our conservative fight against Big Tech as Hall does,” making him “uniquely qualified to examine how we can best utilize AI’s enormous potential, while ensuring it does not exploit kids, creators, and conservatives.” Award-winning investigative journalist and Public founder Michael Shellenberger calls Code Red “illuminating,” ”alarming,” and describes the book as “an essential conversation-starter for those hoping to subvert Big Tech’s autocratic plans before it’s too late.”
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