Monte Fisher, CPA (retired)
Owner & Lead Consultant, Veterans Claims Analytics
Elon Musk’s Department of Government Efficiency (DOGE) is shaking up the Department of Veterans Affairs (VA), slashing jobs and pushing AI solutions to streamline operations. But with veterans waiting nearly 100 days for disability claims to be processed, many are asking: Could Musk’s next target be an AI-driven VA claims process? Or, as Pete Hegseth argues in his recent article with Sean Ryan, is the VA more focused on “feeding the beast” – prioritizing its own survival, money flow, and employment over serving veterans? At Veterans Claims Analytics, we’re digging into this question with a data-driven lens, exploring whether AI can transform claims processing, why the VA hasn’t fully embraced it, and what role bureaucracy plays in the delay.
THE VA CLAIM BACKLOG: A SYSTEM IN NEED OF CHANGE
The VA disability claims process is a lifeline for veterans, but it’s notoriously slow. The VA Office of Inspector General (OIG) has flagged inefficiencies in contractor-managed Compensation & Pension (C&P) exams, citing delays, incomplete Disability Benefits Questionnaires (DBQs), and inconsistent quality. In 2023, the VA processed over 1.2 million claims, yet the backlog persists, averaging nearly 100 days per claim – a delay that leaves veterans waiting for critical benefits. Could AI be the solution, or is the VA’s bureaucracy standing in the way?
IS THE VA "FEEDING THE BEAST"?
Pete Hegseth’s critique resonates with many veterans: the VA often seems more focused on self-preservation than efficiency. With a $301 billion budget in 2023 – including $120.9 billion for benefits – the VA employs 453,000 people, 33% of whom are veterans themselves (about 150,000). This high veteran employment reflects the VA’s commitment to hiring those it serves, but it also creates a structured career path – roles like Veterans Service Representatives (VSRs) and Rating Veterans Service Representatives (RVSRs) offer training, advancement, and lifelong careers. Critics argue this has turned the VA into a “job bureaucracy,” where the focus shifts to maintaining employment and funding rather than resolving claims quickly. The recent layoffs of 80,000 VA employees by DOGE in March 2025 aim to address this, but the impact on claims processing remains uncertain. Is the VA’s structure incentivizing inefficiency, keeping the money flowing to sustain its own ecosystem?
THE VA'S CURRENT USE OF AI: PROGRESS, BUT NOT FOR CLAIMS RATING
The VA has embraced AI in several areas, though not for directly rating claims. Tools like the Content Classification Predictive Service (CCPS) have cut claim establishment time by 3.5 days by classifying conditions, such as interpreting “ringing in my ears” as “Hearing Loss.” AI also triages claims, routing them to appropriate lanes, and detects fraudulent payment changes, protecting veterans’ benefits. In healthcare, the VA uses AI for suicide risk prediction, cancer screening, and reducing provider burnout through automated note-taking. The VA’s Trustworthy AI Framework, adopted in July 2023, ensures these applications are secure, transparent, and maintain human oversight. However, the VA isn’t using AI to fully rate disability claims, relying on RVSRs for final decisions due to the need for nuanced judgment and to maintain veteran trust.
DOGE’S ROLE: AI PROPOSALS
Since January 2025, DOGE has pushed AI at the VA, but not for claims rating. They’ve used AI for surveillance, monitoring VA employees’ communications for disloyalty or DEI buzzwords, and proposed tools like OpenHands for coding agency systems, raising security concerns about veterans’ data, such as Social Security numbers and medical history. Musk has advocated for AI in government operations, such as fraud detection in Social Security payments, but there’s no evidence DOGE is targeting VA claims rating as of April 15, 2025.
WHY NOT FULLY AUTOMATE CLAIMS RATING WITH AI?
Despite inefficiencies, the VA and DOGE haven’t adopted a fully AI-driven claims rating system. Here’s why:
• Complexity Requires Human Oversight:
Rating claims involves evaluating medical evidence, service records, and legal criteria through Veteran Affairs Schedule for Rating Disabilities (VASRD). AI struggles with tasks like interpreting handwritten forms, requiring manual review by RVSRs.
• Accuracy and Bias Risks:
AI can replicate biases in training data, especially if samples don’t reflect diverse veteran demographics, and large language models (LLMs) risk erroneous outputs.
• Veteran Trust and Transparency:
Veterans may distrust AI-rated claims without transparency. Congressman Matt Rosendale has urged the VA to notify veterans if their data is used in AI models, emphasizing consent.,/i>
• Security Concerns:
DOGE’s AI proposals have raised fears of data breaches, especially with veterans’ sensitive information. The VA needs robust security measures before adopting AI for claims rating.
HYPOTHESIZING MUSK'S NEXT MOVE: A FUTURE AI-DRIVEN CLAIMS PROCESS?
Musk’s tech-driven vision suggests DOGE might propose AI for claims rating in the future. An AI system could reduce the backlog by automating initial ratings, using data to predict outcomes, and flagging complex cases for RVSRs. However, the VA’s cautious approach of prioritizing human oversight, contrasted with DOGE’s focus on surveillance and operational savings make this unlikely in the near term. Security and trust concerns, especially around veterans’ data, are significant hurdles. We hypothesize DOGE might first target less sensitive areas, like claims intake or fraud detection, before tackling ratings, potentially in the next two to three years if security and transparency issues are addressed.
VETERANS CLAIMS ANALYTICS: EMPOWERING VETERANS WITH DATA-DRIVEN INSIGHTS
At Veterans Claims Analytics, we’re a non-accredited company and the leading veterans claims analytical provider, uniquely positioned to empower veterans with knowledge to make informed decisions. Our AI-driven analytics, built on decades of financial and process control expertise, efficiently process data to provide veterans and their VSOs with strategic information to help win their claims or make decisions. We don’t prepare or file claims – we provide data, not decisions – ensuring compliance with VA guidelines while giving veterans the tools to navigate the claims process. Our approach could help clear the VA’s backlog if adopted, offering a balanced solution that leverages AI without replacing human judgment. Ready to take control of your claim with data-backed insights? Visit VCAnalytics.ai to learn more.
References:
(link to source in 'Web ID')
Web ID 1 : “Trustworthy AI”. VA (2025). Outlines the VA’s adoption of AI with a focus on ethical principles, including transparency and human oversight.
Web ID 2 : “VBA Modernization Efforts Enable Claims Processing Record". GovCIO (December 24, 2024). Details the VA’s use of AI for triaging and routing claims to improve efficiency.
Web ID 3 : “Protect your benefits: Combatting Payment Redirection Fraud". VA (2025). Describes the VA’s AI model for detecting fraudulent direct deposit changes.
Web ID 4 : “Inside DOGE’s AI Push at the Department of Veterans Affairs". WIRED (April 4, 2025). Discusses DOGE’s proposal to use AI tools like OpenHands for coding at the VA, highlighting security concerns.
Web ID 5 : “DOGE Cuts Update Today: Veterans Affairs Cuts Outlined". Newsweek (April 3, 2025). Reports on DOGE’s layoffs and contract terminations at the VA.
Web ID 6 : “House Republican Urges VA to get consent from veterans before using AI for health". Stars and Stripes (February 15, 2024). Highlights the VA’s AI applications in healthcare and concerns about transparency in claims processes.
Web ID 7 : “Legion Urges Reduction of Overdevelopment of VA Claims, Improvements in Timeliness, Accuracy". American Legion (April 9, 2025). Notes the challenges AI faces in interpreting handwritten claims forms.
Web ID 8 : “Ethical Applications of Artificial Intelligence: Evidence From Health Research on Veterans". National Institutes of Health, National Library of Medicine (June, 2 2021). Discusses risks of bias and inaccuracies in AI applications at the VA.
Web ID 9 : “VA launches AI Tech Sprint to reduce burnout among health care employees". Federal News Network (October 31, 2023). Details the VA’s use of AI for healthcare tasks like cancer screening and reducing provider burnout.
Web ID 10 : “Veterans Benefits Administration Reports - Detailed Claims Data". VA (2025). Provides data on the VA’s claims backlog and processing times.
Web ID 11 : “VA Launches Smart Tool to Reduce Veteran Wait Times for Disability Claims”. DigitalVA (December 27, 2023). Explains the VA’s AI tool, Content Classification Predictive Service (CCPS), for classifying claim conditions to reduce processing time.
Web ID 12 : “Elon Musk wants to use AI to run US gov’t, but experts say ‘very bad’ idea". Al Jazeera (March 13, 2025). Discusses Elon Musk’s broader AI plans for government operations.
Web ID 13 : “Musk’s DOGE Team Mines for Fraud at Medicare, Medicaid". Bloomberg (February 6, 2025). Highlights Musk’s push for AI in government, including fraud detection in Medicare and Medicaid payments
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Disclaimer: MoFish LLC, DBA Veterans Claims Analytics, offers data, not legal advice or claim filing. As a retired CPA, I don’t prepare financials or guarantee outcomes—data informs, you decide. Visit VCAnalytics.ai for details. © 2025 MoFish LLC, All Rights Reserved.
MoFish LLC and VCAnalytics provide educational analytics only. We are not accredited to prepare, file, or advise on claims. Contact a VSO for assistance. We are not a CPA firm and do not provide financial advice or financial statement preparation.
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