AIThe Federal Government Is Rushing Toward AI. Our Reporting Offers Three Cautionary Tales.
I’ve studied how the federal government has handled — and mishandled — the AI transition over the past two decades, and my reporting offers some cautionary tales and valuable lessons as policymakers encourage the use of AI and federal agencies adopt the technology.
As a cybersecurity reporter at ProPublica, much of my work over the past two years has focused on how the federal government and its IT contractors, like Microsoft, have navigated major technological transitions. The one now in the news every day is artificial intelligence.
This emerging technology has its grip on everyone: Home users, corporations and the federal government are all rushing to use it. President Donald Trump and his Cabinet say AI will transform the nation, making us more prosperous, efficient and secure — if only we can adopt it fast enough.
But this messaging isn’t new. President Barack Obama’s administration used nearly identical language a decade and a half ago as the U.S. barreled into the technological revolution of cloud computing.
I’ve studied how the federal government has handled — and mishandled — this transition over the past two decades, and my reporting offers some cautionary tales and valuable lessons as policymakers encourage the use of AI and federal agencies adopt the technology.
Lesson 1: There’s No Such Thing as a Free Lunch
Then: In the early 2020s, a series of cyberattacks linked to Russia, China and Iran left the federal government reeling. The Biden administration called on major tech companies to help the U.S. bolster its defenses. In response, Microsoft CEO Satya Nadella pledged to give the government $150 million in technical services to help upgrade its digital security. It also offered a “free” security upgrade for government customers.
Now: Last year, the Trump administration announced a raft of agreements with tech companies that were meant to help federal agencies “purchase enterprise AI tools at government-friendly pricing.” Agencies could use OpenAI’s ChatGPT for $1. Google’s Gemini for 47 cents. Grok by xAI for 42 cents. The administration hoped that the low-cost pricing would make it “easier for federal teams to acquire powerful AI capabilities … to enhance mission delivery and operational efficiency.”
The takeaway: Be wary of freebies. Our investigation into Microsoft’s seemingly straightforward commitment revealed a more complex, profit-driven agenda. After installing the upgrades, federal customers would be effectively locked in, because shifting to a competitor after the free trial would be cumbersome and costly. At that point, the customer would have little choice but to pay for the higher subscription fees.
