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Elon Musk Suggests AI Could Replace Some Government Workers at Milken Conference

by Team Lumida
May 5, 2025
in AI
Reading Time: 4 mins read
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Elon Musk Reignites Legal Battle Against OpenAI and Sam Altman

"Elon Musk" by dmoberhaus is licensed under CC BY 2.0

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Key Takeaways:

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  • Elon Musk, speaking at the Milken Institute Global Conference, called the U.S. government inefficient and proposed using artificial intelligence to replace some public sector functions.
  • Musk’s comments align with his role in the Trump administration’s Department of Government Efficiency (DOGE), which aims to shrink the federal workforce and cut costs.
  • Musk is preparing to step down from his role at DOGE, stating that his work on the initiative is nearly complete.
  • The Tesla CEO is under pressure to refocus on the carmaker as sales decline and investor concerns grow over his divided attention between Tesla, Neuralink, SpaceX, and government projects.
  • The Milken conference, now in its 28th year, gathers global financial leaders and policymakers to discuss business and global challenges, with Treasury Secretary Scott Bessent among the key speakers.

What Happened?

During a closed-door session at the Milken Institute Global Conference, Elon Musk suggested that artificial intelligence could replace some government workers, citing inefficiencies in the public sector. Musk’s remarks come as he prepares to step down from his leadership role at the Department of Government Efficiency (DOGE), a Trump administration initiative focused on reducing the size of the federal workforce and cutting costs.

Musk also discussed developments at Neuralink, his brain-implant company, and SpaceX, highlighting his diverse range of projects. However, the Tesla CEO is facing mounting pressure to prioritize Tesla, as the company grapples with declining sales and investor concerns over Musk’s divided focus.


Why It Matters?

Musk’s comments reflect the growing conversation around the use of AI to streamline government operations and reduce costs. While the idea of replacing government workers with AI may appeal to advocates of efficiency, it raises questions about job displacement, public sector accountability, and the ethical implications of automating government functions.

For Musk, the remarks also underscore his broader vision of leveraging technology to solve complex societal challenges. However, his divided attention across multiple ventures, including Tesla, Neuralink, SpaceX, and DOGE, has drawn criticism from investors, particularly as Tesla faces headwinds in the automotive market.

The Milken conference serves as a platform for influential leaders to discuss global challenges, and Musk’s comments are likely to spark further debate on the role of AI in government and business.


What’s Next?

As Musk steps down from DOGE, the focus will shift to how the initiative’s goals are implemented and whether AI will play a significant role in reshaping government operations. Meanwhile, Musk’s ability to refocus on Tesla will be closely watched by investors, as the company navigates a competitive and challenging market environment.

The broader implications of AI in government will likely remain a topic of discussion among policymakers and business leaders, particularly as advancements in AI technology continue to accelerate.

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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

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