Treasury CIO removed from AI policy work after clashing with White House
Treasury Secretary Scott Bessent reassigned his chief information officer away from AI policy this summer after the adviser relayed private misgivings over White House policy to AI companies, according to a person familiar with the matter.
Sam Corcos, a former DOGE official who at one time was a top adviser to Bessent, was informed he would no longer work on the secretary's AI portfolio and could no longer speak with industry about it, said the person, who was granted anonymity to discuss a personnel issue. Two other administration officials confirmed Corcos is no longer working on AI matters.
Corcos, who did not respond to a request for comment, remains Treasury CIO. He also serves as acting director of the Technology Transformation Services, acting deputy commissioner for the Federal Acquisition Service, and acting assistant administrator for Login.gov, FedScoop first reported.
Unsanctioned outreach to AI companies
Corcos' removal from AI policy followed multiple points of friction with the White House. One was his role in greenlighting Anthropic's Fable model days before Amazon reported a jailbreak. More recently, he conducted outreach to technology executives without White House approval.
The person familiar with the matter said Corcos convened conversations with executives at OpenAI and Anthropic, as well as members of their teams, without giving the White House full visibility. During those conversations, Corcos portrayed himself as an industry ally and warned that other government officials, reacting to fears over the latest AI models, were attempting to impose a burdensome licensing regime that would hamper innovation.
Those discussions occurred at a delicate moment for top White House staff. AI companies were rolling out advanced new models, and the administration was struggling to coalesce around a coherent regulatory strategy. Some inside the White House favored more government intervention in assessing which models can be released and when, while others advocated for a voluntary framework to test model safety.
"He was telling industry that the administration was trying to screw them," the person said. Corcos, the person added, presented himself as "the only one who was for a free and open process."
A Treasury spokesperson said in a statement, "As Chief Information Officer, Sam Corcos has been a trusted advisor and has played an important role in modernizing the Treasury Department's technology and operations. He remains involved in providing policy guidance on issues within his area of expertise." The spokesperson confirmed that Corcos continues to lead a dedicated team with "significant resources focused on replacing antiquated systems, streamlining operations, and delivering substantial savings for American taxpayers."
White House struggles to settle on AI strategy
The move is the latest example of the White House struggling to coalesce around an AI policy as it grapples with how to regulate increasingly ubiquitous and dangerous artificial intelligence models. A former Anthropic employee's decision to quit this week and warn on X that AI "could kill us all by the end of the decade" has further fueled concern in Congress, and Democrats are laying the groundwork for a select committee on artificial intelligence should they control the House in January.
The White House did not respond to questions about growing alarm in the AI industry and calls for more government intervention to slow it down. When asked for comment about Corcos' position change, the White House sent a statement saying "the President's team is working closely together to balance innovation and security in AI policymaking and to ensure America continues to lead the world in AI innovation."
Some in the administration fear sidelining Corcos means less AI expertise at the top echelons of government. "Sam is the person Americans want working on AI policy. In the midst of a bunch of political people who don't understand the technology and hand wave, you know, Sam was really rigorous, and it's unfortunate that he's not involved," said one of the two administration officials, who was granted anonymity to avoid retribution. "When there's turf wars, they just try to get anything they can say to diminish someone," said the administration official.
The White House is evaluating creating an AI regulatory body, but has yet to decide how it will be structured. One proposal would create an independent body modeled partly on the Financial Industry Regulatory Authority (FINRA) to review advanced models before deployment. The race to shape how the administration's rules evolve has even involved a phone call between Trump and Meta CEO Mark Zuckerberg.
Why this matters for government professionals
Personnel shifts at the intersection of AI policy and technical leadership signal where regulatory authority may land. If your agency handles AI procurement, model evaluation, or data governance, watch how the White House structures its proposed regulatory body - a FINRA-style independent reviewer would create new compliance requirements for vendors and agencies alike. For those in government roles, understanding the AI Learning Path for Policy Makers can help bridge the gap between technical model capabilities and the policy decisions now under debate. The tension between voluntary frameworks and mandated pre-deployment review will shape what tools your agency can adopt, and how quickly.
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