East Arizona News

U.S. Representative David Schweikert’s (AZ-01) amendments to the National Defense Authorization Act (NDAA) for Fiscal Year 2025 passed the House, aiming to implement innovations that create cost-savings for the Department of Defense.

Amendment No. 985 ensures that the audit of the Department of Defense’s financial statements is conducted using artificial intelligence to streamline the internal review process. This amendment mandates that both the Secretary of Defense and Inspector General of the Department of Defense develop this technology.

The Defense Department has failed to achieve a clean financial audit for six consecutive years since it first started auditing itself in 2018. Certain publications have noted that “it’s no surprise” the Pentagon has yet to achieve an independent audit, citing a lack of adequate information obstructing a comprehensive accounting evaluation.

“We’ve just passed year six where the Pentagon has been described as functionally un-auditable,” said Rep. Schweikert. “What if we thought creatively and allowed AI to help us identify what we actually have in our DOD inventory? We ought to protect the American taxpayer, but also protect our national defense by knowing what we own, and what we don’t own.”

Additionally, Amendment No. 1010 requires the Undersecretary of Defense (Comptroller) to conduct a study and report to Congress on potential cost-saving measures incorporating artificial intelligence (AI) and multi-domain, attributable autonomous, semi-autonomous, unmanned systems, capabilities, and processes into each branch of the military and its civilian workforce within 90 days of enactment.

Background on Rep. Schweikert’s Amendments:

The Pentagon employs 2.9 million people and has over half a million assets worth $3.8 trillion while its liabilities total $4 trillion. The 2023 audit required 1,600 auditors and 700 site visits to complete, costing $187 billion.

In 2019, DOD’s audit cost was $428 million. Correcting errors after the audit added another $472 million to the total cost.

This requires the Secretary of Defense to retire outdated financial management systems and replace them with innovative technologies adopted by the Secretary.

Other federal agencies that have integrated AI machinery have saved hundreds of thousands of labor hours, improved business process auditability, and found millions available for de-obligation.

Congressman David Schweikert serves on the Ways and Means Committee and is currently Chairman of the Oversight Subcommittee. He is also Vice Chairman on the bicameral Joint Economic Committee, chairs multiple task forces including Congressional Valley Fever Task Force, Blockchain Caucus among others.