White house. Photo source: Dreamstime.com
The Trump administration's drastic cutbacks in federal staff amid the government shutdown threaten artificial intelligence (AI) work at the Commerce Department, according to sources close to the agency, according to Axios.
Employees at the National Institute of Standards and Technology, the Bureau of Industry and Security and the US Patent and Trademark Office have been laid off, although a judge temporarily blocked those layoffs in a ruling this week.
About 600 people have been laid off at the Commerce Department since Oct. 1, according to a memo from the U.S. Office of Management and Budget (OMB). A Commerce Department official told Axios that the figure is closer to 440 people, but could not tell the difference from the OMB figure.
These agencies are at the heart of implementing the White House's AI plan and are responsible for setting standards and reforms for how government procurement works.
The administration plans to replace some technical processes within the department with artificial intelligence, according to sources cited by Axios.
What happened behind the scenes
The US Commerce Department's Bureau of Industry and Security (BIS) IS has been affected, including staff responsible for relations with Silicon Valley, according to sources familiar with the situation.
There were fewer than 40 layoffs at the National Institute of Standards and Technology (NIST) affecting the Manufacturing Extension Partnership (MEP) and Baldrige programs that were proposed for elimination in the president's budget request, sources said.
The MEP Program is an advanced technology and cyber resource for manufacturers, and the Baldrige Program is a federal initiative focused on helping businesses stay competitive.
“If you don't have the advanced technology of small manufacturers, then obviously you're not going to be able to compete with China,” said Carrie Hines, president and chief executive of the trade association American Small Manufacturers Coalition.
“You can't just come in and bring AI to a manufacturer if they don't have the manpower to support it or the machines to implement it,” Hines added.
The effect of massive staff cuts
According to an industry source who works closely with the Commerce Department, there is a belief that any cuts will be permanent, with technical roles replaced by contractors rather than rebuilding in-house capabilities.
The massive layoffs will hurt progress in artificial intelligence, and the remaining employees will struggle to maintain day-to-day functions, the source said.
Technology agencies within the Commerce Department faced cuts to DOGE funding earlier this year.
The Commerce Department faces a deadline next week to implement an executive order on AI, as companies prepare to offer proposals for infrastructure, tools and models they want the government to designate as “priority” AI export packages.
Comments to the Office of Science and Technology Policy on federal regulations impeding AI development and deployment are also expected later this month.
