Description: 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.
Entities
View all entitiesAlleged: Department of Government Efficiency , DOGE , Sahil Lavingia , Custom LLM-based contract classifier ("Munchable" tool) and OpenAI large language models developed and deployed an AI system, which harmed Department of Veterans Affairs (VA) , Veterans , Veterans receiving care through the VA , VA clinical and research staff and VA contractors.
Alleged implicated AI systems: Custom LLM-based contract classifier ("Munchable" tool) and OpenAI large language models
Incident Stats
Incident ID
1103
Report Count
2
Incident Date
2025-03-18
Editors
Daniel Atherton
Incident Reports
Reports Timeline
As the Trump administration prepared to cancel contracts at the Department of Veteran Affairs this year, officials turned to a software engineer with no health care or government experience to guide them.
The engineer, working for the Depar…

The Department of Government Efficiency (DOGE) developed an artificial intelligence (AI) tool to identify unnecessary contracts at the Department of Veterans Affairs (VA), intending to cut costs. However, the AI system showed significant te…
Variants
A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
Seen something similar?
Similar Incidents
Did our AI mess up? Flag the unrelated incidents
Similar Incidents
Did our AI mess up? Flag the unrelated incidents