Artificial Intelligence Robots May Help State Cut Non-Profit Grant Funding, Says Governor

 FROM THE ALASKA BEACON 

Dunleavy administration eyes grants to NGOs for possible cuts in Alaska budget

BY: JAMES BROOKS - AUGUST 5, 2025  

 The State Office Building in Juneau is seen on Thursday, Feb. 20, 2025. (Photo by James Brooks/Alaska Beacon)

In a new administrative action, Gov. Mike Dunleavy is ordering “efficiency reviews” of state agencies and asking departments to use artificial intelligence software as part of an effort to identify budget cuts.

The reviews will take place annually, according to Dunleavy’s new administrative order, published Monday, and would become part of the state’s annual budget process.

The reviews will initially focus on “grants to non-State of Alaska entities” and “accounts payable,” according to a copy of the text available online.

The reviews are intended to “identify potential savings” and “improve efficiency of operations” but also will include recommendations for the state to contract out services rather than performing them in-house.

“Alaskans expect their government to deliver essential services in the most efficient and responsible way possible,” Dunleavy said in a written statement announcing the administrative order. “This order ensures we prioritize critical needs, eliminate waste, and safeguard the state’s financial stability.”

Some prior outsourcing efforts by the Dunleavy administration have seen state services assigned to call centers outside Alaska, drawing opposition from union officials and legislators. 

A second order, also released Monday, calls for the state to significantly reduce the number of regulations it has on the books.

Notably, the order says that the state should speed permitting for projects regulated by the Alaska Department of Natural Resources, Department of Environmental Conservation and Alaska Department of Fish and Game.

That could mean automatically approving projects even if their environmental review hasn’t been completed according to timelines required by the state, the order says.

Dunleavy leaves office on Dec. 6, 2026. The order says that the state should “reduce the number of regulatory requirements by 15% by Dec. 31, 2026, and 25% (cumulative) by Dec. 31, 2027.”

A liaison with each state department will be required to provide quarterly updates on that goal to the governor’s office.